Subin .S v Union of India, Reserve Bank of India, The Federal Bank Limited, The Manager, Federal Bank (Kazhakuttam), Inspector of Police, Financial Offences Branch, Mira Bhayandar Vasai Virar

# `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. 4699 OF 2024` ## `PETITIONER:` ``` SUBIN .S, AGED 20 YEARS, C/O SAJI A, 99/976(1), SS COTTAGE, POUNDUKADAVU, VALIAVELI P.O, THIRUVANANTHAPURAM, PIN – 695021. ``` ``` BY ADVS. ALBIN A. JOSEPH SUSANTH SHAJI SIDHARTH O. ``` ## `RESPONDENTS:` ``` 1UNION OF INDIA, REPRESENTED BY THE SECRETARY, MINISTRY OF FINANCE, NORTH BLOCK, NEW DELHI, PIN – 110001. 2RESERVE BANK OF INDIA REPRESENTED BY ITS, GENERAL MANAGER BRANCH OFFICE BANERJI ROAD ERNAKULAM NORTH, KOCHI, PIN – 682018. 3THE MANAGING DIRECTOR THE FEDERAL BANK LIMITED. POST BOX NO. 103, FEDERAL TOWERS, ALUVA ERNAKULAM, PIN – 683101. 4THE MANAGER, FEDERAL BANK, KAZHAKUTTAM BRANCH, PADMANANBHAM BUILDING, KAZHAKUTTAM, THIRUVANANTHAPURAM, PIN – 695582. ``` ``` 5THE INSPECTOR OF POLICE, FINANCIAL OFFENCES BRANCH, MIRA BHAYANDAR VASAI VIRAR POLICE COMMISSIONERATE, MAHARASHTRA, PIN – 400068. BY ADV.SRI.S.MANU, DSGI SRI.MOHAN JACOB GEORGE, 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. 4699 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. 4699 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 accounts of the 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. I ``` ## `WP(C) NO. 4699 OF 2024` ``` -4- ``` ``` 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 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. 4699 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 petitioner/account holder to deal with his 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 petitioner/account holder to transact fully in his account, notwithstanding the debit ``` ## `WP(C) NO. 4699 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 ``` ``` petitioner/account holder 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 ``` ``` petitioner/account holder will be at full liberty to approach this Court again; for ``` ``` WP(C) NO. 4699 OF 2024 ``` ``` -7- which purpose, all contentions in this writ petition are reserved to him to be impelled in future. ``` ``` Sd/- ``` ``` DEVAN RAMACHANDRAN ``` ``` JUDGE ``` ``` akv ``` ``` WP(C) NO. 4699 OF 2024 ``` ``` -8- ``` ## `APPENDIX OF WP(C) 4699/2024` ## `PETITIONER EXHIBITS` |`EXHIBIT-P1`|`TRUE PHOTOSTAT COPY OF THE `|`NOTICE`| |---|---|---| ||`DATED 15/12/2023 ISSUED BY THE 4TH`|| ||`RESPONDENT REGARDING DIRECTION`|`OF 5TH`| ||`RESPONDENT`|| |`EXHIBIT-P2`|`TRUE PHOTOSTAT COPY OF THE BALANCE`|| ||`STATEMENT OF THE ACCOUNT OF THE`|| ||`PETITIONER OBTAINED THROUGH `|`MOBILE`| ||`BANKING APPLICATION`|| |`EXHIBIT-P3`|`TRUE`<br>`PHOTOSTAT`<br>`COPY`<br>`OF`|`THE`| ||`REPRESENTATION DATED 25/01/2024`|`ISSUED`| ||`BY THE PETITIONER TO THE 3RD AND 4TH`|| ||`RESPONDENTS`|| |`EXHIBIT-P3(A)`|`TRUE PHOTOSTAT COPY OF THE `|`POSTAL`| ||`TRACK CONSIGNMENT RECORD DOWNLOADED`|| ||`FROM INDIA POST WEBSITE `|`DATED`| ||`05/02/2024`|| |`EXHIBIT-P4`|`TRUE`<br>`PHOTOSTAT`<br>`COPY`<br>`OF`|`THE`| ||`REPRESENTATION DATED 25/01/2024`|`ISSUED`| ||`BY THE PETITIONER TO THE 2ND`|| ||`RESPONDENT`|| |`EXHIBIT-P4(A)`|`TRUE PHOTOSTAT COPY OF THE `|`POSTAL`| ||`TRACK CONSIGNMENT RECORD DOWNLOADED`|| ||`FROM INDIA POST WEBSITE `|`DATED`| ||`05/02/2024`||