CENTRAL BANK OF INDIA v. HUSAINY FAKHRUDDIN AND OTHERS
Case Details & Bench
- Court
- High Court
- Hon'ble Judges
- Kurian, J.
- A. M. Khanwilkar, J.
- Judgment Date
- 2017-01-31
- Court Decision / Holding
- The appeal is disposed of with a direction to the appellant-bank to release the deposits made by Respondents 1 to 4, in case the same are not to be withheld for any other reason. The needful be done within a week from the date of receipt of copy of this Judgment. There shall be no order as to costs.
- Final Disposition
- Appeal disposed of
Parties to the Case
Appellants / Petitioners
- CENTRAL BANK OF INDIA
Respondents
- HUSAINY FAKHRUDDIN AND OTHERS
Legal Representation & Advocates
Counsels for Petitioners
- • Jaideep Gupta
- • Dinesh Mathur
- • Priyanka Bharti
Counsels for Respondents
- • Madhavi Divan
- • Sharavanth Paruchuri
- • Rajal Nair
- • Arvind Kumar Sharma
Case Synopsis & Summary
Central Bank of India v. Husainy Fakhruddin and Others concerns the release of deposits deposited by four respondents and the procedural battle over whether those deposits should remain blocked pending an investigation. In 2005, during a withdrawal request, the Central Bureau of Investigation (CBI) instructed the appellant-bank not to release the deposits until a reference from the CBI or the Special Court was received. Respondents I to IV challenged that directive in a Criminal Writ Petition before the Bombay High Court, which ultimately directed the bank to release the funds in its impugned order of July 23, 2010. The CBI, on instruction, informed the Court that it had withdrawn its objection to release, stating that there was no longer any impediment from the agency’s side. On this basis, the Supreme Court held that the principal objection to release—the CBI’s earlier instruction—had been withdrawn, and there was no remaining objection to the release. The Court disposed of the appeal with a directive to the bank to release the deposits within a week of receiving a copy of the judgment, provided there were no other reasons to withhold. The Court left open questions of law, indicating that the outcome relied on the withdrawal of CBI’s objection rather than on a detailed re-examination of the merits.
Submissions & Arguments
Contentions of Appellants / Petitioners
The appellant-bank's challenge to the High Court’s order stemmed from the CBI’s earlier objection to releasing the deposits. It contended that, pending a reference from the investigating authorities or a directive from a competent court, the funds should remain withheld to avoid undermining the investigation. With the CBI’s withdrawal of its objection, the Bank argued there was no constitutional or statutory requirement to continue blockage, and that the direction to release should be considered unconditional in the absence of any further impediment. The Bank asserted that the High Court’s decision improperly encroached upon the agency’s investigative prerogatives and that any release should be conditioned only by legal constraints then in force.
Contentions of Respondents
The respondents argued that the High Court correctly directed the release of the deposits, highlighting that the sole basis for withholding—the CBI’s instruction—had been withdrawn. They contended there was no ongoing reference, no outstanding objection from any authority, and that continued detention of funds would cause undue hardship and prejudice to the respondents. They urged unconditional release within a short timeframe to avoid further detention, asserting that the withdrawal of the CBI’s objection removed the legitimate basis for blocking the funds.
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