A bank cannot freeze an entire account due to suspicious transactions; only the specific amount under suspicion should be withheld, and the remaining balance must be released for the account holder's use.

Order on Board

29/04/2026

1. By way of this petition, the petitioner has challenged the action of respondent No. 1 – State Bank of India, Branch Rajkishor Nagar, District Bilaspur (C.G.), whereby the savings account of the petitioner bearing Account No. 37846624377 has been frozen without issuance of any prior notice and without assigning any reasons.

2. Facts of the case, in brief, are that the petitioner is an Advocate by profession. The petitioner is maintaining a savings account with respondent No. 1. One criminal case in sessions case No. 78/2024, whereas the petitioner is representing the accused persons namely Ramchandra Kewat and Durga Prasad Kewat in the said case, they are charged with the offence under Section 307 read with Section 34, 294, 506 Part-II of IPC and after full-fledged trial both the accused persons are acquitted from the charges, the accused persons engaged the petitioner as an Advocate to represent them before the learned trial court i.e. Special Judge, Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989, for that purpose the fee as fixed by the petitioner was Rs. 10,000/- for the trial, on 27.11.2024 after acquittal from the full-fledged trial Rs. 8,000/- was credited in the account of petitioner by the accused Durga Prasad Kewat and sum of Rs. 2000/- is also credited on the same date on 27.11.2024 by Durga Prasad Kewat. It is the case of the petitioner that suddenly his bank account was frozen without any prior intimation. Upon inquiry, it was informed that due to certain UPI transactions fraud which are suspicious/unlawful, have lead to such action. The petitioner submits that no FIR or criminal proceedings have been initiated against him and despite repeated representations, no action has been taken by the bank authorities to defreeze the account. Due to freezing of the account, the petitioner is facing severe financial hardship as he is not able to debit the money from his amount.

3. Following reliefs have been prayed by way of this petition:-

10.1 That the Hon'ble Court may kindly be pleased to direct the respondent authorities to defreeze the petitioner's saving bank account No. 37846624377 saving account IFC Code No. SBIN0009408 situated at State Bank of India, Branch Rajkishor Nagar Bilaspur (C.G.) with immediate effect.

10.2 That the Hon'ble Court may kindly be pleased to direct the respondent authority to take action upon the representation made by the petitioner to respondent No. 1/Bank dated 10.09.2025, 17.11.2025 & 16.01.2026 and letter communication made to respondent No. 2 dated 29.01.2026 within stipulated time and take decision of defreeze the bank account of the petitioner.

10.3 Any other relief, which may deem fit, in the interest of justice.

4. Learned counsel for the petitioner submits that the action of freezing the account without notice is arbitrary, violative of principles of natural justice, and without authority of law. It is further submitted that in absence of any criminal proceedings or cogent material, the entire account could not have been frozen.

5. Per contra, learned counsel for the respondents, while justifying the action, submits that the account was frozen due to suspicious transactions; however, fairly submits that the bank is concerned only with safeguarding the amount under suspicion.

6. During the course of hearing, learned counsel for the parties fairly agree to a workable arrangement that the amount which is under suspicion may be withheld by the respondent bank, and so far as the remaining amount in the account is concerned, the petitioner may be permitted to operate the same.

7. Considering the submissions advanced by le