Bank freeze on co-operative account limited to cyber crime requisition amounts; details shared for internal lien by account holder bank.

JUDGMENT

Dated this the 7^th day of April, 2026

1. Petitioner is a Service Co-operative Bank, which has filed this Writ Petition challenging the lien/hold/freeze effected in its account and seeking a direction to the Respondent/Bank to remove or lift the lien/hold/freeze effected in the account maintained by the Petitioner/Co-operative Bank with the Respondent/Bank. The Respondents Nos.7, 8 and 9 are the Police Authorities, which are made parties in the Writ Petition, alleging that they have issued Requisitions for lien/freeze/hold with respect to the account of the Petitioner/Co-operative Bank maintained with the Respondent/Bank.

2. This Court had considered a similar issue in Kunnamangalam Co-operative Rural Bank Ltd. (M/s.) v. Inspector of Police, Cyber Police Station South Region, Brihan [2026 KHC 179], and the Petitioner/Co-operative Bank is also entitled to get the same directions.

3. Learned Standing Counsel for the Respondent/Bank submitted that the Respondent/Bank received the requisitions from the Respondent Nos.7, 8 and 9 for Rs.21,950/-, Rs.18,000/- and Rs.30,000/- respectively, totalling Rs.69,950/-. In view of the said submission, the Petitioner/Co-operative Bank can be permitted to operate its account maintained with Respondent/Bank, limiting the lien/hold/freeze to Rs.69,950/-. In order to enable the Petitioner/Co-operative Bank to identify the accounts of its Account Holders which are involved in the disputed transactions and to effect corresponding lien/hold/freeze for the amounts stated in the Requisitions, Respondent/Bank has to furnish all the details of the Requisitions, including the . transaction IDs, to the Petitioner/Co-operative Bank On getting those details, it is for the Petitioner/Co-operative Bank to act swiftly and effect lien/hold/freeze for the amounts shown in the Requisitions in the respective accounts of its Account Holders in order to prevent loss of the disputed amounts from the financial system.

4. Accordingly, this Writ Petition is disposed of with the following directions:

i. The Respondent/Bank is directed to permit the Petitioner/Co-operative Bank to operate the account maintained by the Petitioner/Co-operative Bank with the Respondent/Bank, limiting the lien to Rs.69,950/-.

ii. The Respondent/Bank is directed to communicate the details of the requisitions, including the transaction IDs, to the Petitioner/Co-operative Bank so as to enable the Petitioner/Co-operative Bank to effect lien/hold/freeze for the amounts shown in the Requisitions in the respective accounts of its Account Holders. iii. The Petitioner/Co-operative Bank is directed to effect lien for the amounts shown in the Requisitions so communicated by the Respondent/Bank in the respective accounts of its Account Holders.

iv. In case of receipt of future Requisitions by the Respondent/Bank with respect to the account of the Petitioner/Co-operative Bank maintained with the Respondent/Bank, the Respondent/Bank shall continue to permit the Petitioner/Co-operative Bank to operate its account, limiting the lien/hold/freeze to the amounts shown in the Requisitions.

v. In case of receipt of future Requisitions also, the Respondent/Bank shall immediately forward all the details to the Petitioner/Co-operative Bank and the Petitioner/Co-operative Bank shall effect the corresponding lien/hold/freeze in the respective accounts of its Account Holders.

vi. The amounts which are kept under lien/hold/freeze in the account of the Petitioner/Co-operative Bank maintained with the Respondent/Bank shall be subject to the Orders passed by the jurisdictional Magistrate. vii. If the Respondent/Bank receives any Court Order to transfer the lien amount from the Account of the Petitioner/Co-operative Bank, the same shall