K Nanda Kishore @ Nanda Kishore K S/o K. Suryanarayan Rao v. State Bank Of India
2025-11-14
B.M.SHYAM PRASAD
body2025
DigiLaw.ai
ORDER : B.M.SHYAM PRASAD, J. The petitioners seek directions to the respective Banks to de-freeze their corresponding accounts and to permit them to operate their bank accounts. This Court has heard not just Sri Akash B Shetty, the learned counsel who is on record for the petitioners but also the learned counsels for the respective Banks and Sri H.V. Bhanu Prakash, the learned Additional Advocate General, Sri P. Prasanna Kumar and Sri Shanti Bhushan H, the learned amici curiae, who are assisting this Court in disposal of similar matters. 2. The petitioners' common grievance is because the corresponding Banks have frozen their respective accounts. The Banks have frozen their accounts because of communications from the different Police Officers as mentioned in each of these petitions. Sri Akash B Shetty submits, with the advantage of the arguments that have been advanced on the larger question on whether the account holders must receive due information about the amounts marked for lien on receipt of a complaint, that the grievance of these petitioners would be addressed if this Court disposes of the petitions with directions to the corresponding Banks to limit freezing to the amounts marked for lien by the concerned Police and permit them to operate the accounts beyond the amount marked for lien. 3. Sri H.V. Bhanu Prakash and Sri Shanthi Bhushan H are categorical that instructions have been issued to all the Banks to limit the de-freezing to the amounts marked for lien and not restrict the accounts holders from operating the accounts beyond the amount marked for lien. In fact, Sri H.V. Bhanu Prakash invites this Court's attention to the Circular dated 20.07.2024 and the Standing Order No.1041 dated 18.03.2025 to emphasize that the Police Investigation Authorities within the State have been called upon not to issue any directions to freeze the bank accounts without justifiable reasons and if an account has to be frozen, it should only be to the extent of the suspected transaction.
The relevant part of the Circular reads as under: In the light of this, the petitioners seek disposal of these petitions, with a direction to the corresponding Banks to limit the freezing to the amount marked for lien and this Court is of the view that the petitions, without prejudice to the petitioners' rights, otherwise must be disposed of directing the corresponding Banks to communicate the amount marked for lien as part of investigation and permit the petitioners to operate the accounts otherwise. As such, the following ORDER [i] The petitions are disposed of directing the respective Banks to communicate to the petitioners the amounts that are marked for lien by the authorities and also permit them to operate the accounts beyond the amounts marked for lien. [ii] The petitioners are reserved with liberty to file a certified copy of this order within two [2] weeks from the date of receipt of a copy of this order and the corresponding Banks shall inform the amounts marked for lien and permit the petitioners to operate the accounts beyond such amounts forthwith. [iii] It is needless to observe that if the authorities for reasons have not marked the amounts to be on lien, the petitioners must avail their remedy in accordance with law.