Harshita Seeds PVT LTD vs. Axis Bank
Held
The Court held that the decisions in Malcolm Murayis (supra) and Archana (supra) were applicable mutatis mutandis to the present case. The Court directed that the disputed amount of Rs. 1,95,000/- mentioned in the petition be kept in a Fixed Deposit (FD). If any other complaint is received by the bank regarding another entry, the bank is at liberty to take appropriate action in accordance with law, keeping in mind the SOP issued by the Government. The disputed amount shall be liquidated only after orders are passed by the competent Judicial Magistrate within three months. If the police agency does not proceed in accordance with law within this period, the amount in FD may be withdrawn by the petitioner under intimation to the police agency. The bank account of the petitioner shall be unfrozen, and the petitioner shall be permitted to operate the account. The Court did not expressly leave any issue undecided.
Facts
The petitioner, Harshita Seeds Pvt Ltd, filed a writ petition seeking a direction to unfreeze its current bank account held with Axis Bank, Ujjain, and to allow its operation. The petitioner argued that its case was covered by previous High Court judgments, specifically Malcolm Murayis & Ors. Vs. State Bank of India and Others, which dealt with similar issues of bank accounts being frozen based on cyber crime allegations. The petitioner contended that they had not received any notice regarding involvement in any offense and were lawfully conducting business. The judgment also refers to a Standard Operating Procedure (SOP) framed by the Government for banks regarding grievance redressal for frozen accounts, as discussed in the case of Archana Vs. The State of Madhya Pradesh and Others.
Key Issues
1. Whether the High Court can direct the unfreezing of a bank account based on previous judgments and the newly framed Standard Operating Procedure (SOP) when the account has been frozen due to allegations of cyber fraud. Petitioner's Arguments: - The petitioner's case is squarely covered by the decision in Malcolm Murayis & Ors. Vs. State Bank of India and Others, which allowed operation of bank accounts under certain conditions. - They have not received any notice regarding involvement in any offense and are conducting lawful business. - The freezing of the account is arbitrary and without proper procedure. Revenue/State's Arguments: - The judgment does not explicitly record arguments from the revenue or state. However, it refers to the banks acting on instructions from cyber cell police stations and being bound by such instructions. The judgment also discusses the role of investigating agencies and the need to preserve proceeds of cyber crime.
Sections Cited
Section 102 of Cr.P.C.
AI-generated summary — verify with the full judgment below
Before: HONBLE SHRI JUSTICE SANDEEP N. BHATT
This writ petition has been preferred by the petitioner under Article 226 of the Constitution of India praying for the following reliefs: a) This petition may kindly be allowed with cost. b) to direct the Respondent by issuance of a Writ of mandamus to un- freeze the current account of the Petitioner bearing A/e no. - 924020052166867 of Axis Bank, First floor, Survey no. 3996 and 3998/3, Plot no. 74 Part, Vishvavidhyalay Marg, Dewas Road, Ujjain,district Ujjain and to allow the petitioner to operate the aforesaid bank account. ¢) Issue such other orders, writ, and direction as this Hon’ble court deems fit in the interest of justice in favor of petitioner.
Learned counsel for the petitioner has submitted that the case of the petitioner is squarely covered by the decision rendered by this Court in the case of Malcolm Murayis & Ors. Vs. State Bank of India and Others passed in
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