Subair. C v. AU Small Finance Bank

2025:KER:26785 **WP(C) NO. 45369 OF 2024** **1** **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR.JUSTICE C.S.DIAS** **FRIDAY, THE 28[TH] DAY OF MARCH 2025 / 7TH CHAITHRA, 1947** ## **WP(C) NO. 45369 OF 2024** ## **PETITIONER:** **SUBAIR. C AGED 43 YEARS S/O ABDULLA KUTTY ,CHEERANGAN, OTTUMMAL, PARAPPANANGADI , MALAPPURAM DISTRICT, PIN - 676303** **BY ADVS. LATHEEF P.K. SIDDIQUE C. FAHAD HUSSAIN** ## **RESPONDENTS:** - **1 AU SMALL FINANCE BANK REPRESENTED BY THE GENERAL MANAGER, HEAD OFFICE, MG ROAD, KANDOMKULATHY TOWER, ERNAKULAM DISTRICT, PIN - 682011** - **2 BRANCH MANAGER AU SMALL FINANCE BANK, MG ROAD, GROUND FLOOR, KANDOMKULATHY TOWER, KOCHI , ERNAKULAM DISTRICT, PIN - 682011** - **3 THE NATIONAL CYBER REPORTING CRIME PORTAL REP. BY ITS SECRETARY, MINISTRY OF HOME AFFAIRS,NEW DELHI, PIN - 110001** 2025:KER:26785 **WP(C) NO. 45369 OF 2024** **2** - **4 STATE POLICE CHIEF, KERALA POLICE HEAD QUARTERS, VAZHUTHAKKAD, THIRUVANANTHAPURAM, PIN - 695014** **5 SHO OF POLICE CYBER CRIME POLICE STATION, CYBER ROAD 1, VASANTH NAGAR, PLOT NO 744, JINTU, KUKATPALLY, HYDERABAD, TELANGANA ( IS IMPLEADED AS ADDITIONAL 5TH RESPONDENT IN THE WRIT PETITION AS PER ORDER DATED 28.03.2025 IN I.A. NO.1 OF 2025 )** - **6 SHO OF POLICE CYBER CRIME POLICE STATION, MAHARASHTRA, AMARAVATHI CITY POLICE STATION, RAJPETTA, MANUBHAV, ASHRAM, KAVAR NAGAR ( IS IMPLEADED AS ADDITIONAL 6TH RESPONDENT IN THE WRIT PETITION AS PER ORDER DATED 28.03.2025 IN I.A. NO.1 OF 2025 )** **BY ADVS. B.S.SURESH KUMAR ASHLEY JOHN(K/000719/2015) RANJANA V.(K/001646/2000) ANUSREE C.S.(K/1438/2021) DSGI GP SMT VIDYA KURIAKOSE** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28.03.2025, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** 2025:KER:26785 **WP(C) NO. 45369 OF 2024** **3** ## JUDGMENT ## **Dated this the 28[th] day of March, 2025** The writ petition is filed to direct the 2[nd] respondent bank to lift the freezing of the petitioner’s bank account bearing No.2302267054689069. 2.The petitioner is the holder of the above bank account with the 2[nd] respondent bank. The petitioner states that the 2[nd] respondent has frozen the petitioner’s bank account pursuant to a requisition received from the additional 5[th] respondent. The action of the 2[nd] respondent is illegal and arbitrary. Hence, this writ petition. 3. Heard; the learned counsel appearing for the petitioner, the learned counsel for the second respondent and the learned Government Pleader. 4. The learned counsel for the second 2025:KER:26785 **WP(C) NO. 45369 OF 2024** **4** respondent submitted that although requisition has been received from the additional 5[th] respondent, no amount is mentioned in the requisition. The said submission is recorded. 5. In considering an identical matter, this Court in Dr.Sajeer v. Reserve Bank of India [2024 (1) KLT 826] held as follows: “ a. The respondent Banks arrayed in these cases, are directed to confine the order of freeze against the accounts of the respective petitioners, only to the extent of the amounts mentioned in the order/requisition issued to them by the Police Authorities. This shall be done forthwith, so as to enable the petitioners to deal with their accounts, and transact therein, beyond that limit. b. The respondent – Police Authorities concerned are hereby directed to inform the respective Banks as to whether freezing of accounts of the petitioners in these Writ Petitions will require to be continued even in the afore manner; and if so, for what further time, within a period of eight months from the date of receipt of a copy of this judgment. c. On the Banks receiving the afore information/intimation from the Police Authorities, they will adhere with it and complete necessary action – either continuing the freeze for such period as mentioned therein; or withdrawing it, as the case may be. d. If, however, no information or intimation is received by their Banks in terms of directions (b) above, the petitioners or such among them, will be at full liberty to approach this Court again; for which purpose, all their contentions in these Writ Petitions are left open and reserved to them, to impel in future.” 2025:KER:26785 **WP(C) NO. 45369 OF 2024** **5** 6. this Court in Nazeer K.T v. Subsequently, Manager, Federal Bank Ltd [2024 KHC OnLine 768], case after concurring with the view in Dr.Sajeer's (supra) and taking into consideration Section 102 of the Code of Criminal Procedure (now Section 106 of the Bharatiya Nagarik Suraksha Sanhita, 2023] and the interpretation of Section 102 of the Code laid down by the Hon'ble Supreme Court in State of Maharashtra v. Tapas D Neogy [(1999) 7 SCC 685], Teesta Atul Setalvad v. State of Gujarat [(2018) 2 SCC 372] and Shento Varghese v. Julfikar Husen and others [2024 SCC OnLine SC 895], has held thus: “8. The above discussion leads to the conclusion that, while delay in forthwith reporting the seizure to the Magistrate may only be an irregularity, total failure to report the seizure will definitely have a negative impact on the validity of the seizure. In such circumstances, account holders like the petitioner, most of whom are not even made accused in the crimes registered, cannot be made to wait indefinitely hoping that the police may act in tune with S.102 and report 2025:KER:26785 **WP(C) NO. 45369 OF 2024** **6** the seizure as mandated under Sub-section (3) at some point of time. In that view of the matter, the following direction is issued, in addition to the directions in Dr.Sajeer (supra). (i) The Police officer concerned shall inform the banks whether the seizure of the bank account has been reported to the jurisdictional Magistrate and if not, the time limit within which the seizure will be reported. If no intimation as to the compliance or the proposal to comply with the S.102 is informed to bank within one month ofreceipt of a copy of the judgment, the bank shall lift the debit freeze imposed on the petitioner's account. (ii) In order to enable the police to comply with the above direction, the bank as well as the petitioner shall forthwith serve a copy of this judgment to the officer concerned and retain proof of such service. 7. I am in complete agreement with the views in Dr.Sajeer and Nazeer K.T cases (supra). The above principles squarely apply to the facts of the case on hand. In the above conspectus, I dispose of the writ petition by passing the following directions: (i) The 2[nd] respondent Bank is directed to confine the freezing order of the petitioner's bank account only to the extent of the amount mentioned in the order/requisition issued by the Police Authorities. The above exercise shall be done forthwith, so as to enable the petitioner to transact through his 2025:KER:26785 **WP(C) NO. 45369 OF 2024** **7** account beyond the said limit; (ii). The Police Authorities are hereby directed to inform the Bank as to whether freezing of the petitioner's account will be required to be continued even in the afore manner; and if so, for what further time; (iii) On the Bank receiving the afore information/intimation from the Police Authorities, they will adhere with it and complete necessary action – either continuing the freeze for such period as mentioned therein; or withdrawing it, as the case may be; (iv). If, however, no information or intimation is received by the Bank in terms of direction (ii) above, the petitioner will be at full liberty to approach this Court again; for which purpose, all his contentions in this Writ Petition are left open and reserved to him, to impel in future; (v) The jurisdictional police officers shall inform the Bank whether the seizure of the bank account has been reported to the jurisdictional Magistrate and if not, the time limit within which the seizure will be reported. If no intimation as to the compliance or the proposal to comply with Section 102 of the Cr.P.C. is received by the Bank within two months of receipt of a copy of this judgment, the Bank shall lift the debit freeze or remove 2025:KER:26785 **WP(C) NO. 45369 OF 2024** **8** the lien, as the case may be, on the petitioner's bank account; (vi) In order to enable the Police to comply with the above direction, the Bank, as well as the petitioner, shall forthwith serve a copy of this judgment to the jurisdictional officer and retain proof of such service. The writ petition is ordered accordingly. SD/- C.S.DIAS, JUDGE rmm28/3/2025 2025:KER:26785 **WP(C) NO. 45369 OF 2024** **9** ## **APPENDIX OF WP(C) 45369/2024** **PETITIONER EXHIBITS** **Exhibit P1 THE TRUE COPY OF THE BANK ACCOUNT STATEMENT DATED 11-03-2024** **Exhibit P2 A TRUE COPY OF THE REPRESENTATION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT BANK DATED 02-12-2024** ## **RESPONDENT ANNEXURES** **ANNEXURE R1(A) LETTER OF INTIMATION RECEIVED FROM MAHARASTHRA AMRAVATI CITY RAJAPETH ANNEXURE R1(B) LETTER OF INTIMATION RECEIVED FROM TELENGANA CYBER POLICE**