IN THE HIGH COURT OF KERALA AT ERNAKULAM
MR.JUSTICE C.S.DIAS, J
Balanarayanan B Harikumar, S/o PN Harikumar – Appellant
Versus
State Police Chief Police Head Quarters, Vazhuthacad – Respondent
JUDGMENT :
The writ petition is filed to lift the freezing of the petitioner’s bank accounts with the 4th respondent bank bearing No.155555336688 and the 5th respondent bank bearing No.10096847745.
2. The petitioner is the holder of the above bank accounts with the respondents 4 and 5. The petitioner contends that the respondents 4 and 5 have frozen the petitioner’s bank accounts pursuant to a requisitions received from the respondents 2 and 3. The action of the respondents 4 and 5 is illegal and arbitrary. Hence, this writ petition.
3. Heard; the learned counsel appearing for the petitioner, the learned Government Pleader and the learned counsel for the respondents 4 and 5.
4. The learned counsel for the 4th respondent bank submitted that, there are two requisitions received from the respondents 2 and 3. The total disputed amount is Rs.1,50,000/-. The learned counsel for the 5th respondent bank submitted that they have received a requisition from the 3rd respondent and the disputed amount is Rs.8,00,000/-. The said submissions are recorded.
5. In considering an identical matter, this Court in Dr.Sajeer v. Reserve Bank of India [2024 (1) KLT 826] held as follows:
“ a. The respondent Bank
The court established that banks must limit account freezes to amounts specified by police requisitions and cannot indefinitely freeze accounts without timely reporting to the magistrate.
The court mandates that bank account freezes must be limited to specified amounts and timely police reporting is essential to maintain validity.
The court established that bank account freezes must be limited to specified amounts and require timely police reporting to ensure fairness to account holders.
The court established that banks must limit account freezes to specified amounts and act promptly on police communications regarding seizures, ensuring timely reporting to the Magistrate.
Debits on bank accounts can only be frozen for specific amounts mentioned in requisitions, with obligations on police to report compliance effectively.
The court established that bank accounts can only be frozen to the extent of amounts specified by police requisitions, and failure to report seizure to the magistrate invalidates the freeze.
The court ruled that bank account freezes must be limited to specified amounts and require timely police reporting to ensure account holders are not unduly restricted.
Indefinite freezing of bank accounts without timely police reporting is unjust; banks must act based on police communication regarding the necessity of the freeze.
Banks must limit account freezing to specified amounts and follow due process; failure to do so necessitates lifting the freeze.
The judgment establishes limits on bank account freezing upon police requisition, ensuring due process under the BNSS and safeguarding the petitioner's rights.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.