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2021 Supreme(Manipur) 30

IN THE HIGH COURT OF MANIPUR AT IMPHAL
M.V. Muralidaran, J.
North Eastern Children's Home - Appellants
Vs.
The State Bank of India and Ors. - Respondent
WP(C) No. 622 of 2018 and Criminal Revision Petition No. 6 of 2019
Decided On : 17-03-2021

Advocates Appeared:
For the Appellant :H. Kenajit, Advocate
For the Respondents:H. Samarjit, GA and Ch. Momon, Advocate

The court upheld the freezing of NECH's bank account based on the conviction of the administrator under POCSO Act and IPC, and directed the government to take custody of NECH and run it as a government children's home through the Social Welfare Department.

Headnote:

NECH - Freezing of Bank Account - Sections 397, 401, 482 of Cr.P.C - POCSO Act - IPC - FRCA Saving Account No. 11343706468 - The court upheld the freezing of the NECH's bank account based on the conviction of the administrator under POCSO Act and IPC. The court also directed the government to take custody of NECH and run it as a government children's home through the Social Welfare Department.

Fact of the Case:

The North Eastern Children's Home (NECH) sought a writ of mandamus to defreeze its bank account and filed a criminal revision petition to set aside the order for attachment of its properties. The NECH alleged that the freezing of its account violated the right to life of the children in the home and that the properties were wrongly attached.

Finding of the Court:

The court found that the freezing of the account was based on the conviction of the administrator under POCSO Act and IPC, and upheld the freezing order to prevent diversion of funds by the absconding convict. The court also directed the government to take custody of NECH and run it as a government children's home through the Social Welfare Department.

Issues: Violation of right to life, freezing of bank account, attachment of properties, control of NECH by convict's family members.

Ratio Decidendi: The freezing of the account was justified to prevent diversion of funds by the absconding convict. NECH's control by the convict's family members led to the decision to take custody of NECH and run it as a government children's home through the Social Welfare Department.

Final Decision: The writ petition and criminal revision petition were dismissed, NECH was directed to be taken over by the government and run as a government children's home, and the Principal Secretary, Home Department, was directed to submit compliance and periodical reports.

JUDGMENT :

M.V. Muralidaran, J.

1. The writ petition has been filed by the petitioner North Eastern Children's Home, represented by its Secretary Rody Lalmingmoi Hmar, seeking a writ of mandamus for defreezing the FRCA saving account bearing No. 1134 3706 468 of the petitioner in the second respondent bank in the name and style of North Eastern Children's Home, Churachandpur.

2. The Criminal Revision Petition has been filed by the same North Eastern Children's Home, Churachandpur under Sections 397, 401 read with Section 482 of Cr.P.C. for setting aside the order dated 30.3.2019 passed by the Special Judge (POCSO), Imphal West in Special Trial (POCSO) Case No. 2 of 2017.

3. The writ petition has been filed by the North Eastern Children's Home, Churachandpur, (hereinafter referred to as "NECH") stating that the NECH is running a children home in Churachandpur District and funds for running the said home are fully funded from the foreign country and as such the NECH opened a FCRA Saving Account in the branch of the second respondent in the name and style of NECH bearing FCRA Saving Account No. 11343706468 and the said account is operated by the Administrator and the Secretary of NECH. One Timothy L Changsan was the founder member of NECH and he was involved in the function of the NECH in various capacities as Administrator, Director etc. However, the said Changsan had applied to the Chairman/Secretary of the NECH for resignation from the said post of Director along with a prayer to leave the board. The application of Changsan was taken up on 23.7.2017 along with the case of Jane Nancy Marian and the resignation of Changsan was accepted by the Board of Trustees and Nancy was also removed from the member of the Board of Trustees and Society. The change of the Administrator and Secretary of the NECH was duly informed to the second respondent and the present Secretary and the new Administrator had been operating the said account of the NECH since July, 2017.

4. While so, on 9.7.2018, when the Secretary of the NECH went to transact its account, the second respondent informed her that the NECH's account has been freezed. When the Secretary inquired the reason for doing the same, the second respondent did not give any reply. On 12.7.2018, the NECH made an application to the second respondent to defreeze the said account and also to let them know the reason for freezing the account. The said application has not been attended to by the second respondent.

5. It is further alleged that the NECH needs money daily to look after the daily basic needs of food, medicines etc. of 46 children who are presently staying in the home; the act of the second respondent in freezing the account of the NECH is arbitrary and it violates the right to life of the children staying in the home and further it violates the principles of natural justice as no notice was given to the petitioner for taking up such drastic action by the second respondent against the NECH. Hence, the writ petition.

6. The second respondent filed affidavit stating that it is informed by the Inspector of Women Police Station, Churachandpur vide letter dated 31.7.2018 that the Administrator of the NECH namely Timothy L Changsan was convicted in connection with FIR No. 2(2/2015 WPS/CCP & FIR No. 3(2) 2015 WPS/CCP under Section 354/376-C/506 IPC and 6/8/10 POCSO Act by the Special Judge, POCSO, Imphal West, Manipur on 30.4.2018 by sentencing to rigorous imprisonment for life under POCSO Act; imprisonment for seven years under Section 10 of POCSO Act and imprisonment of seven years under Section 506 IPC and thereafter, the convicted person had absconded and his whereabouts is not known till date. Therefore, the Officer-in-Charge, Women Police Station, Churachandpur vide letter dated 31.7.2018 requested the second respondent for freezing of the saving account of the petitioner and on receipt of the such request letter from the said OC, WPS, the account of the NECH has been freezed.

7. Similarly, th

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