M/S LOGIX IT SOLUTION and Sumesh P.S. v. Punjab National Bank and Others

# `IN THE HIGH COURT OF KERALA AT ERNAKULAM` ## `PRESENT` ``` THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN FRIDAY, THE 15[TH] DAY OF MARCH 2024 / 25TH PHALGUNA, 1945 ``` ``` WP(C) NO. 7121 OF 2024 ``` ## `PETITIONERS:` ``` 1M/S LOGIX IT SOLUTION REPRESENTED BY ITS PROPRIETOR SUMESH P.S, S/O P.K.SOMAN, PANDATH HOUSE EDAMUTTAM, VALAPPAD, EDAMUTTAM THRISSUR DISTRICT-KERALA, PIN – 680568. ``` ``` 2SUMESH P.S, AGED 40 YEARS, S/O P.K.SOMAN, PANDATH HOUSE EDAMUTTAM, VALAPPAD, EDAMUTTAM THRISSUR DISTRICT-KERALA, PIN – 680568. ``` ``` BY ADVS.P.T.MANOJ JESTINA MARIAM JOSEPH LITISHYA FRANCIS ``` ## `RESPONDENTS:` ``` 1PUNJAB NATIONAL BANK, REPRESENTED BY ITS AUTHORISED OFFICER, CHAITHANYA BUILDINGS, VALAPAD THRISSUR DISTRICT, PIN – 680567. 2THE STATION HOUSE OFFICER CYBER CRIME CELL, KOTWALI KANPUR NAGAR POLICE STATION NEAR BADA CHAURAHA DISTRICT, KANPUR NAGAR UTTAR PRADHESH, PIN – 208004. 3THE SUB INSPECTOR, ASHEESH GUSSAIN, CYBER CRIME POLICE STATION DEHRADUN, UTTARAKHAND,INDIA, PIN – 248001 4SANKALP SHARMA IPS, SP DEORIA, SP OFFICE, DEORIA, UTTAR PRADHESH, PIN – 274001. 5THE STATION HOUSE OFFICER CYBER CRIME CELL COMMISSIONERATE GHAZIABAD, UTTAR PRADHESH,INDIA, PIN – 201001. ``` ``` SRI.SANTHEEP ANKARATH, SC ``` ``` 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. 7121 OF 2024 ``` ``` -2- ``` ## `JUDGMENT` ``` In matters relating to the freezing of accounts, this Court has already delivered a judgment inDr.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. 7121 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 account of the 1[st] 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, sufficientlyprotectingboththe investigation, as also the account holders. ``` ## `WP(C) NO. 7121 OF 2024` ``` -4- ``` ``` I 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 1[st] 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. 7121 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 1[st] ``` ``` petitioner/account holder to deal with their ``` ``` account and transact therein beyond that limit. ``` ``` (c) On the contrary, if no information is ``` ``` receivedfromthePolice ``` ``` 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 petitioners/account holders to transact fully in their account, notwithstanding the debit ``` ## `WP(C) NO. 7121 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, thentheBankwillinformthe ``` ``` petitioners/account holders 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 ``` ``` petitioners/account holders will be at full liberty to approach this Court again; for ``` ``` WP(C) NO. 7121 OF 2024 ``` ``` -7- which purpose, all contentions in this writ petition are reserved to them to be impelled in future. ``` ``` Sd/- ``` ``` DEVAN RAMACHANDRAN ``` ``` JUDGE ``` ``` akv ``` ``` WP(C) NO. 7121 OF 2024 ``` ``` -8- ``` ## `APPENDIX OF WP(C) 7121/2024` ## `PETITIONER EXHIBITS` ``` EXHIBIT P1 ``` ``` TRUE COPY OF THE LETTER DATED 30/11/2023 ISSUED BY THE 1ST RESPONDENT ```