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2025 DIGILAW 667 (KAR)

Axis Bank Ltd. v. State of Karnataka

2025-07-01

S.R.KRISHNA KUMAR

body2025
ORDER : 1. In this petition, petitioner seeks the following reliefs: "a) To set aside the Order Dated 23.09.2024 passed by the Hon'ble 45th Additional Chief Judicial Magistrate, Bengaluru, in Crime No.473/2024 i.e Annexure C in terms of which the petitioner is directed to defreeze the current account bearing A/c No.923020051871662 M/s. Hussain Furniture maintained in the petitioner's Bank and transfer the same to the account of the respondent No.2. b) To pass such other orders as may be deemed expedient in the circumstance of the case and in the interest of justice." 2. Learned counsel for the petitioner submits that the impugned order passed by the Trial Court, directing the petitioner-Bank to defreeze the amount belonging to the accused and to transfer the said amount to the Account of the second respondent, who also holds an Account in the petitioner-Bank, is without providing sufficient and reasonable opportunity to the petitioner and under identical circumstances, this Court has set aside the impugned order and remitted the matter back to the Trial Court for reconsideration of the application filed by respondent No.2 under Sections 451 and 457 of the Cr.P.C. 3. In an identical circumstance, this Court, in the case of Axis Bank Ltd. Vs. The State of Karnataka and another in Criminal Petition No. 6644/2025 disposed of on 02.06.2025 , set aside the impugned order therein and remitted the matter back to the Trial Court for reconsideration afresh in accordance with law. The said order reads as under:- "In this petition, the petitioner seeks the following reliefs: "a) To set aside the order dated 16.01.2025 passed by the Hon'ble II Additional Senior Civil Judge and JMFC Chikkaballapura, in Crime No.94/2024 i.e., Annexure-C directing the Petitioners to defreeze the Savings/current account bearing A/c. No.923020050892332, A/c.No.922010047434860, A/c No.919010030337161 and A/c. No.923020049674273 maintained in the Petitioner's Bank. b) To pass such other orders as may be deemed expedient in the circumstance of the case and in the interest of justice." 2. Heard learned counsel for the petitioner and learned AGA for the respondents and perused the material on record. 3. b) To pass such other orders as may be deemed expedient in the circumstance of the case and in the interest of justice." 2. Heard learned counsel for the petitioner and learned AGA for the respondents and perused the material on record. 3. In addition to reiterating the various contentions urged in the memorandum of petition and referring to the material on record, learned counsel for the petitioner submits that the issue in controversy involved in the present petition is directly and squarely covered by the judgment of a Co-ordinate Bench of this Court in the case of Axis Bank Ltd. Vs. The State of Karnataka and Anr., Crl. Pet. No. 1787/2023 dated 14.12.2023, and the present petition may be disposed of in the above terms. 4. As rightly contended by the learned counsel for the petitioner, the issue in controversy in the present petition is covered by the judgment of this Court in the case of Axis Bank Ltd., Vs. The State of Karnataka and Anr., wherein it is held as under: "The Petitioner which is a Financial Institution is before this Court challenging the order passed by 1st Additional Chief Metropolitan Magistrate on an application filed under Sections 451 and 457 of Cr.P.C. by the complainant/respondent No.2 directing the petitioner-Bank to defreeze the amount belonging to the accused and transfer the said amount to the bank account of the complainants/respondent No.2. 2. The petitioner's concern is that the order passed by the Jurisdictional Magistrate cannot be executed because it surpasses the specified release amount, and numerous courts across the Country have issued directives to the investigating agencies to unfreeze the bank accounts of the accused therein. 3. Learned Special Public Prosecutor on instructions would suggest that the matter may be remanded to the Jurisdictional Courts to consider the application filed under Sections 451 and 457 of Cr.P.C. afresh, by affording an opportunity of hearing to the petitioner. 4. Admittedly, multiple cases are registered against the accused herein within the State and across the country and there are multiple orders passed by the Jurisdictional Magistrates directing the petitioner to unfreeze the account of the accused and transfer the amount to the bank account of the complainants. 4. Admittedly, multiple cases are registered against the accused herein within the State and across the country and there are multiple orders passed by the Jurisdictional Magistrates directing the petitioner to unfreeze the account of the accused and transfer the amount to the bank account of the complainants. The passing of multiple orders has caused difficulty to the petitioner/bank in executing the said order, since the amount ordered to be released in some accounts exceeds the amount available in the subject accounts of the accused. Therefore, the learned Magistrate before passing an order directing the petitioner to unfreeze and transfer the amount to the accounts of the complainants, is required to hear the petitioner. Accordingly, I pass the following: ORDER i. Criminal Petition is allowed. ii The order dated 26.11.2021 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.452/2021 is hereby set aside. iii. Matter is remanded to 1st Additional Chief Metropolitan Magistrate, Bengaluru to reconsider the application filed under Sections 451 and 457 of Cr.P.C. afresh, after giving the opportunity of hearing to the petitioner. 5. Till the application is disposed of, the petitioner/bank is restrained from releasing the money in favour of any person from the subject account." 5. In view of the above, the writ petition is disposed of in terms of the order passed in the case of Axis Bank Ltd., Vs. The State of Karnataka and Anr. 6. Accordingly, I pass the following: ORDER : i. Criminal Petition is allowed. ii. The order dated 16.01.2025 passed by the II Additional Senior Civil Judge and JMFC, Chikkaballapura in Crime No.94/2024, is hereby set aside. iii. Matter is remanded to II Additional Senior Civil Judge and JMFC, Chikkaballapura in Crime No.94/2024, to reconsider the application filed under Sections 451 and 457 of Cr.P.C. afresh, after giving the opportunity of hearing to the petitioner. iv. Till the application is disposed of, the petitioner/bank is restrained from releasing the money in favour of any person from the subject account. Subject to the aforesaid observations and directions, the Petition stands disposed of." 4. In view of the aforesaid facts and circumstances and in order to provide one more opportunity to the petitioner Bank, the impugned order is liable to be set aside and the matter is remitted back to the Trial Court for reconsideration afresh in accordance with law. 5. Subject to the aforesaid observations and directions, the Petition stands disposed of." 4. In view of the aforesaid facts and circumstances and in order to provide one more opportunity to the petitioner Bank, the impugned order is liable to be set aside and the matter is remitted back to the Trial Court for reconsideration afresh in accordance with law. 5. Accordingly, I pass the following: ORDER : i. Criminal Petition is allowed. ii. The order dated 23.09.2024 passed by the 45 th Additional Chief Judicial Magistrate, Bengaluru, in Crime No.473/2024, is hereby set aside. iii. Matter is remanded to the 45 th Additional Chief Judicial Magistrate, Bengaluru, in Crime No.473/2024, to reconsider the application filed under Sections 451 and 457 of Cr.P.C. afresh, after giving the opportunity of hearing to the petitioner. iv. Till the application is disposed of, the petitioner/bank is restrained from releasing the money in favour of any person from the subject account. Subject to the aforesaid observations and directions, the Petition stands disposed of.