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2025 Supreme(Online)(Ker) 31365
IN THE HIGH COURT OF KERALA AT ERNAKULAM
N. NAGARESH, J
ELSA TENNY, TENNY JOSE CHIRAMEL, ARUN TENNY JOSE, KIRAN C TENNY – Appellant
Versus
THE RESERVE BANK OF INDIA – Respondent
WP(C) NO. 9643 OF 2023
For the Appellants/Petitioners: SRI.M.S.AMAL DHARSAN, DR.THUSHARA JAMES, SHRI.NOEL JACOB
For the Respondents: SRI.AMAL GEORGE
The classification of bank accounts as 'fraud' must comply with existing legal standards and prior court rulings.
Headnote:Statute Analysis: The Master Directions Circular of the Reserve Bank of India was scrutinized in relation to the classification of bank accounts. Facts of the Case: The petitioners challenge the classification of their accounts as 'fraud' following a directive from the Reserve Bank.
Findings of Court:
The classification was deemed legally contentious in light of existing precedents.
Issues: The court contemplated the legality of the classification of accounts as 'fraud'.
Ratio Decidendi: The court emphasized adherence to the cited judgment, asserting it invalidates the current classification.
Result: The petition stands disposed of as the bank has reclassified the petitioners' account, permitting them to return if necessary.
| Table of Content |
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| 1. the petitioners contest the fraud classification. (Para 1 , 2) |
| 2. the court notes the submission and implications of the classification. (Para 3) |
JUDGMENT
Dated this the 2nd day of June, 2025 The petitioners are aggrieved by the classification of their bank accounts as 'fraud', based on the Master Directions Circular of the Reserve Bank of India.
2. The petitioners submit that in view of the judgment of the Hon'ble Apex Court inState Bank of India & Others v. Rajesh Agarwal & Others [ (2023) 6 SCC 1 ], such classification is illegal and unsustainable.
3. Standing Counsel entered appearance on behalf of the Bank and submitted that taking note of the Circular and the judgment of the Apex Court, the petitioners' account has been reclassified for the time being. However, the bank proposes to take action in accordance with law.
As the petitioners bank account has already been reclassified, no further orders are necessary in the writ petition. This writ petition stands disposed of recording the submission made on behalf of the bank and granting liberty to the petitioners to approach this Court again, if situation so warrants.
