Infinix Inftoech vs. Utkarsh Small Fianance Bank
Held
The Court held that the decisions in 'Malcolm Murayis' and 'Archana' were applicable mutatis mutandis to the present case. The Court directed that the disputed amount of Rs. 38,301/- be kept in a Fixed Deposit (FD). The bank account of the petitioner was ordered to be unfrozen, allowing the petitioner to operate the account. The FD would be liquidated only after orders are passed by the competent Judicial Magistrate within three months. If the police agency fails to proceed in accordance with law within this period, the amount in FD may be withdrawn by the petitioner, with intimation to the police agency. The Court also noted that if any other complaint is received by the bank regarding other entries, the bank can take appropriate action in accordance with law, keeping in mind the SOP. The Court did not expressly leave any issue undecided.
Facts
The petitioner, Infinix Infotech, filed a writ petition seeking to unfreeze its bank account maintained with Utkarsh Small Finance Bank. The account was frozen based on an intimation from cyber cell police stations, alleging involvement in cyber fraud. The petitioner contended that they were unaware of any such involvement and were lawfully conducting their business. They relied on previous judgments of the High Court, specifically 'Malcolm Murayis & Ors. Vs. State Bank of India and Others' and 'Archana Vs. The State of Madhya Pradesh and Others', which dealt with similar issues of bank account freezing due to cyber fraud allegations and the Standard Operating Procedure (SOP) issued by the Ministry of Home Affairs. The disputed amount in this case was Rs. 38,301/-.
Key Issues
1. Whether the High Court can direct the unfreezing of a bank account based on previous judgments and the SOP when allegations of cyber fraud have been made by police authorities? (Question of law and mixed fact and law, turning on Article 226 of the Constitution of India, Section 102 of Cr.P.C., and the SOP dated 10.04.2026). Petitioner's Arguments: - The petitioner's case is covered by the precedent set in 'Malcolm Murayis' and 'Archana'. - They have not received any notice regarding involvement in any offense and are carrying out their business lawfully. - The freezing of the account is arbitrary and without due process. - The disputed amount is small compared to the total account balance. Revenue/State's Arguments: - The judgment records no specific arguments from the revenue or state authorities regarding the petitioner's specific case. However, the underlying principle is that banks freeze accounts upon instructions from investigating authorities to prevent cyber fraud.
Sections Cited
Article 226, Section 102 of Cr.P.C.
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORDER This writ petition has been preferred by the petitioner under Article 226 of the Constitution of India praying for the following reliefs:
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RELIEF SOUGHT a) This petition may kindly be allowed with cost. (b) To direct the Respondent No. 1 and Respondent No. 2 thereby directing Respondents to remove the hold/ freeze on the Bank Account Number 1764020000000036 maintained with the Utkarsh Small Finance Bank Indore (UTKS0001 764) of the petitioner. (c) Issue such other orders, writ and directions as this Hon'ble Court deems fit in the interest of justice in favour 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 W.P. No.1100 of 2024 dated 26.04.2024. 3. So far as th
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