Judgment
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN FRIDAY, THE 15TH DAY OF MARCH 2024 / 25TH PHALGUNA, 1945 WP(C) NO. 5400 OF 2024 PETITIONER:
SULFIKAR AGED 37 YEARS S/O. PATHUMMA N.A., 6/255/B, AMBALATH HOUSE, VATTAMAVU ROAD, VALLISSERY, AVINISSERY, THRISSUR DISTRICT -, PIN – 680306.
BY ADV VISHNUPRASAD NAIR RESPONDENTS:
1 UNION OF INDIA MINISTRY OF HOME AFFAIRS NORTH BLOCK, NEW DELHI REPRESENTED BY ITS HOME SECRETARY, PIN – 110001.
2 INDIAN CYBERCRIME COORDINATION CENTRE REPRESENTED BY ITS CEO 5TH FLOOR, NDCC-II BUILDING, JAI SINGH ROAD, NEW DELHI, PIN – 110001.
3 THE RESERVE BANK OF INDIA REPRESENTED BY THE DEPUTY GENERAL MANAGER, RBI, BAKERY JUNCTION, NANDAVANAM, VAZHUTHACAUD, THIRUVANANTHAPURAM, KERALA-, PIN – 695033 4 THE SOUTH INDIAN BANK (SIBL0000376) ALKA BUILDING, ROUND NORTH, THRISSUR., REPRESENTED BY BRANCH MANAGER, PIN – 680001 BY ADVS.
SUNIL SHANKAR A VIDYA GANGADHARAN(K/000424/2020) SRI.S.MANU, DSGI THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15.03.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 5400 OF 2024 -2- JUDGMENT In matters relating to the freezing of accounts, this Court has already delivered a judgment in Dr.Sajeer v. Reserve Bank of India [2024 (1) KLT 826].
2.
In the aforesaid judgment, certain directions were issued to the respective Banks, as also the Police Authorities, to continue the freeze for a certain period of time and only to the extent which was requisitioned by the Police.
3.
However, what makes this case different from the one that was considered by this Court in the aforesaid judgment, is that the requisitions received by the Bank are stated to contain no particular amount, but seek a complete and blanket debit freeze of
WP(C) NO. 5400 OF 2024 -3- all the amounts in credit therein.
4.
The legal issues and the imperatives involved have already been discussed by this Court in Dr.Sajeer (supra). A blanket freeze indefinitely, and without any period of time being stipulated by the Police, is certainly deleterious, not only to the account holders but also to the system as a whole; and the view in this regard of this Court is clearly reflected in Dr.Sajeer (supra).
5.
However, since the Bank is now incapacitated from allowing the operation of the accounts of the petitioner because the requisition issued to them do not contain any particular amount, I am certain that this Court is enjoined to deal with this matter, sufficiently
protecting
both
the investigation, as also the account holders. I
WP(C) NO. 5400 OF 2024 -4- am persuaded to such course because, the blanket freeze of an account, if it is not imperatively necessary, will be an affront to the rights of the account holders and impinges even their right to livelihood, since, in this era, everyone relies upon banking transactions as the primary source.
In the afore circumstances, following Dr.Sajeer (supra), I dispose of this writ petition with the following directions:
(a) The respondent Bank is directed to immediately issue a request to the Investigation Authority/Police Authority and seek the amount which is required to be kept in freeze or held in lien in the account of the petitioner. This shall be done by the Bank within a period of one month from the date of receipt of a copy of this judgment.
WP(C) NO. 5400 OF 2024 -5- (b) In the event that the Investigating Officer/Police Authority responds to the afore requisition and mentions a particular amount, as being the sum that is required to be kept frozen or held in lien, then the respondent Bank will confine the freeze/lien to such an extent and allow the petitioner/account holder to deal with his account and transact therein beyond that limit.
(c) On the contrary, if no information is received
from
the
Police Authority/Investigating officer within a period of two months from the date on which the afore requisition was made by the respondent Bank, then they will allow the petitioner/account holder to transact fully in his account, notwithstanding the debit
WP(C) NO. 5400 OF 2024 -6- freeze requisition, subject to any further information to be received from the Police Authority/Investigating Officer in future.
(d) As an alternative, if the response from the Police Authority/Investigating Officer is that the entire account be frozen for any reason that is mentioned therein, then
the
Bank
will
inform
the petitioner/account holder accordingly and continue the freeze in such a manner for a further period of eight months thereafter.
(e) If, after a period of eight months, the requisition made by the Police Authorities - either to a particular sum or the full amount in the account of the account holder - is not withdrawn, then the petitioner/account holder will be at full liberty to approach this Court again; for
WP(C) NO. 5400 OF 2024 -7- which purpose, all contentions in this writ petition are reserved to him to be impelled in future.
Sd/- DEVAN RAMACHANDRAN JUDGE akv
WP(C) NO. 5400 OF 2024 -8- APPENDIX OF WP(C) 5400/2024 PETITIONER EXHIBITS EXHIBIT P1 A TRUE COPY OF THE GST REGISTRATION CERTIFICATE ISSUED BY GOVERNMENT OF INDIA DATED 24/05/2023 IN FAVOUR OF THE PETITIONER'S FIRM EXHIBIT P2 A TRUE COPY OF THE ACCOUNT STATEMENT OF THE PETITIONER'S CURRENT ACCOUNT DATED 15/1/2024