The court reaffirmed that banks can freeze accounts suspecting unauthorized transactions but must do so within a stipulated period without need for prior notice.

JUDGMENT

W.P.(C) Nos.24926, 21330, 7935, 16538 and 23940 of 2023 These writ petitions have been filed seeking to challenge the freezing of bank accounts of the respective petitioners by the respondents herein, on the basis of certain directives issued by the police authorities/Government authorities.

2. A learned Single Judge of this Court, in Abdul Azees v. Union of India [2025 (7) KHC 308] has held that though the Banks can effect debit freeze, even without issuing any notice to the account holder, in a situation where the Bank could suspect the transaction in the accounts, such freezing could be continued only for a period of three months. Certain directives were also issued by this Court in the afore judgment.

I am of the opinion that the directions issued by this Court would apply to the facts and circumstances of this case also. Insofar as these writ petitions have been pending for almost three years and no further steps seems to have been taken in the matter, I am of the opinion that these writ petitions can be disposed of, in terms of the interim orders issued by this Court as above. These writ petitions are disposed of as above.

Sd/-