Full Judgment
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN FRIDAY, THE 15TH DAY OF MARCH 2024 / 25TH PHALGUNA, 1945 PETITIONER: MUJEEB RAHMAN V.A, AGED 47 YEARS, CHEEDIKUNNUMMAL(H), KODUVALLY P.O, KOZHIKODE(DIST.), PIN - 673572. BY ADVS. V.S.MANSOOR AKHIL BINOY RESPONDENTS: 1 THE BANK MANAGER, THE STATE BANK OF INDIA KODUVALLY BRANCH, CALICUT WAYANAD ROAD, KOZHIKODE(DIST.), PIN - 673578. 2 STATION HOUSE OFFICER MANCHERIAL POLICE STATION, TELANGANA STATE, PIN - 380008. BY ADV. SRI. GILBERT GEORGE CORREYA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15.03.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: -2-
JUDGMENT
In matters relating to the freezing of accounts, this Court has already delivered a
judgment in Dr.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 -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 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, sufficiently protecting both the investigation, as also the account holders. I -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. -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
received from the Police 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 -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, then the Bank will inform the 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
-7- which purpose, all contentions in this writ petition are reserved to him to be impelled in future. Sd/- DEVAN RAMACHANDRAN JUDGE akv -8- APPENDIX OF WP(C) 43094/2023 PETITIONER EXHIBITS EXHIBIT P1 A TRUE PHOTOCOPY OF THE 1ST PAGE OF ACCOUNT STATEMENT OF THE PETITIONER ISSUED BY THE 1ST RESPONDENT IN RESPECT OF ACCOUNT NO: 00000020356587209 EXHIBIT P2 A TRUE PHOTO COPY OF COMPLAINT RECEIVED BY THE 1ST RESPONDENT FROM THE 2ND RESPONDENT