IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25^TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM CRIMINAL PETITION NO. 11903 OF 2025 BETWEEN:

AXIS BANK LTD A BANKING COMPANY CARRYING ON THE BANKING BUSINESS UNDER THE BANKING REGULATION ACT, 1949 INCORPORATED UNDER THE COMPANIES ACT, 1956 AND HAVING ITS REGISTERED OFFICE AT 'TRISHUL', 3RD FLOOR OPPOSITE SAMARTHESHWAR TEMPLE LAW GARDEN, ELLIS BRIDGE AHMEDABAD -380 006, GUJARAT.

AND HAVING ONE OF ITS Digitally signed BRANCH OFFICE AT GROUND FLOOR by CHAITHRA A PS PREMISES NO.248, TAUZI NO.951 Location: HIGH COURT OF WEST CHAMPARAN, KHATA NO.224 KARNATAKA PLOT NO.408, HOLDING NO.80 GUPTA MARKET, BAGAHA-1 WEST CHAMPARAN DISTRICT BIHAR STATE - 845 101.

REPRESENTED BY ITS BRANCH HEAD MR. RAJEEV RANJAN MISHRA AGED ABOUT 40 YEARS ALSO AT:

S/O UPENDRA MISHRA KAMALNATH NAGAR, NEAR SANT. MICHLE SCHOOL, BETTIAH, WEST CHAMPARAN BIHAR-845 438.

…PETITIONER (BY SRI. UNNIKRISHNAN M., ADVOCATE)

AND:

1. THE STATE OF KARNATAKA BY WHITEFIELD DIVISION BANGALORE CITY.

REPRESENTED BY SPP HON'BLE HIGH COURT OF KARNATAKA BANGALORE 01.

2. NARENDRA .N AGED ABOUT 27 YEARS S/O. CHOIKKANARASIMHAPPA RESIDING AT NO.276 OPP. RAMA TEMPLE, 6TH CROSS KRISHNA REDDY BUIDLING DODDANAKKUNDI, MARATHAHALLI SARAKKI GARDEN, J.P.NAGAR BENGALURU - 560 037.

KARNATAKA.

…RESPONDENTS (BY SRI. RAHUL RAI K., HCGP FOR R1)

THIS CRL.P IS FILED U/S.482 CR.P.C (FILED U/S.528 BNSS) PRAYING TO SET ASIDE THE ORDER DATED 16.08.2024 PASSED BY THE 45^TH ADDITIONAL CHIEF METROPOLITAN MAGISTRATE, BENGALURU IN CRIME NO.1157/2023 THAT IS ANNEXURE-C IN TERMS OF WHICH, THE PETITIONER IS DIRECTED TO DEFREEZE THE SAVING/CURRENT ACCOUNT NO.923020032547157 AND A/C NO.923020032529870 MAINTAINED IN THE PETITIONER'S BANK AND TRANSFER THE SAME TO THE ACCOUNT OF THE RESPONDENT NO.2.

THIS PETITION, COMING ON FOR FURTHER HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM

ORAL ORDER

The captioned petition is filed by the petitioner – a Scheduled Commercial Bank/Financial Institution, assailing the legality and validity of the order dated 16.05.2024 passed by the Court of the 45^th Additional Chief Metropolitan Magistrate, Bengaluru in Crime No.1157/2023. By the impugned order, the learned Magistrate directed the petitioner-Bank to defreeze the savings/current account bearing Nos.923020032547157 and 923020032529870 maintained in the petitioner’s branch, standing in the name of the accused.

2. The petitioner-Bank is gravely aggrieved by the impugned order essentially on the ground that it was passed without affording the Bank an opportunity of hearing, though the directions were addressed exclusively to it. It is the specific grievance of the petitioner-Bank that the order was made at the instance of respondent No.2 – the complainant, without impleading or notifying the petitioner-Bank, which is a necessary stakeholder.

3. Learned High Court Government Pleader, placing reliance on orders passed by a Co-ordinate Bench of this Court in similar and analogous matters, submitted that in identical circumstances, this Court has interfered with such orders and has remitted the matter back to the jurisdictional Magistrate for fresh consideration of applications filed under Sections 451 and 457 of the Code of Criminal Procedure, 1973 (“Cr.P.C.”). In those cases, this Court has consistently taken the view that since directions are issued to the Financial Institutions to defreeze accounts, they are indispensable parties to such proceedings, and hence the principles of natural justice require that they be heard before any coercive direction is issued.

4. The petitioner-Bank has further urged that there are multiple criminal cases registered against the accused, not only within the State of Karnataka but also across various jurisdictions in the country. In several of these cases, different courts have issued orders directing the petitioner-Bank to defreeze the bank accounts of the accused and transfe