Telangana High Court
M/S. First Finance Credit Cooperative ... vs The Union Bank Of India on 20 March, 2025
THE HON'BLE SRI JUSTICE N.V. SHRAVAN KUMAR
WRIT PETITION No.5212 of 2025
ORDER:
This writ petition is filed seeking the following prayer:
"to declare the action of Respondent Nos.1 and 2 in imposing and maintaining a debit freeze and lien on the bank account of Petitioner No.1 Society bearing A/c.No.409001432511 maintained with Respondent No.2 to the tune of Rs.90,26,22,546.07 Rupees Ninety Crore Twenty Six Lakhs Twenty Two Thousand Five Hundred Forty Six and Seven Paise Only as being wholly without jurisdiction, illegal, arbitrary, perverse unconstitutional and in direct contravention of the order dated 19.10.2024 passed by the Honourable XXIII Additional City Civil and Sessions Judge-cum-Special Judge, P.C. Act, Bengaluru apart from being in gross violation of the fundamental rights of the Petitioners under Articles 14 19 and 21 of the Constitution of India and set aside the same and Consequently direct Respondent Nos.1 and 2 not to interfere in any manner with the operation and running of the bank account of Petitioner No.1 Society bearing A/c.No.409001432511 maintained with Respondent No.2 including by not issuing any further debit freeze or lien instructions in the future in respect of the said account in relation to Cr.No.118 of 2024, dated 28.05.2024."
2. Heard Sri Sai Ram Kanakamedala, learned counsel appearing for the petitioners, Sri Umesh Manthani, NVSK,J W.P.No.5212 of 2025 2 learned counsel representing Sri Mamilla Ashwin Reddy, learned counsel appearing for respondent No.2 and learned Government Pleader for Home appearing for respondent Nos.3 and 4. Perused the record.
3. Facts in brief are as follows:
Petitioner No.2 herein, who is the Chairman of the Petitioner No.1-Society submits that it is a well reputed financial institution established under the provisions of the Multi-State Co-operative Societies Act, 2002. The Petitioner No.1-Society is committed to the economic welfare of its members and has been instrumental in providing credit facilities.
It is submitted that the Petitioner No.1-Society is maintaining banking relationships with multiple financial institutions including Respondent No.2-Bank and a bank account (current account) bearing A/c No.409001432511 is maintained for the financial operations of the society.
NVSK,J W.P.No.5212 of 2025 3 It is also submitted that on 23.05.2024 it was brought to the notice of the petitioner No.1-society that its bank account had been debit frozen and upon enquiry, it was informed that the debit freeze had been imposed based on the instructions issued by Respondent No.1 to Respondent No.2 herein.
It is also submitted that it was later brought to the knowledge of the Petitioners that Respondent No.1 herein being the principal bank where the account of Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited is maintained, issued a communication dated 23.05.2024 directing Respondent No.2 herein to impose a debit freeze on the bank account of Petitioner No.1-Society on the ground of certain alleged wrongful credits into the account of Petitioner No.1- Society in relation to funds purportedly belonging to Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited and on the very same date Respondent No.1 herein had issued another NVSK,J W.P.No.5212 of 2025 4 communication directing respondent No.2 to mark a lean on the said bank account.
It is further submitted that on 28.05.2024 a criminal case bearing Cr.No.118 of 2024 was registered by the High Grounds Police Station, Bengaluru City, Karnataka (later taken over by Respondent No.4 herein) in connection with the alleged misappropriation of funds belonging to Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited.
It is the further case of the petitioners that they were not originally named as accused in the F.I.R. and they were subsequently implicated at a later stage, despite the absence of any cogent material or prima facie evidence. They are also pursuing appropriate legal remedies, including seeking quashment of the said proceedings before the competent Court in Bengaluru, Karnataka.
It is further submitted that aggrieved by such unlawful and arbitrary actions, Petitioner No.2 herein had NVSK,J W.P.No.5212 of 2025 5 preferred an application before the learned XXIII Additional City Civil and Sessions Judge-cum-Special Judge (P.C. Act), Bengaluru, under Sections 451 and 457 of the Cr.P.C., seeking directions for unfreezing of the bank accounts belonging to Petitioner No.1-Society, including the account bearing Account No.409001432511 maintained with Respondent No.2 herein. Thereafter learned Sessions Court vide orders dated 19.10.2024 directed unfreezing of all bank accounts belonging to Petitioner No.1-Society, including Account No.409001432511 maintained with Respondent No.2 herein. The conclusive findings of the aforesaid order read under:
"a. That only an amount of Rs.7.5 Crores was found to belong to Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited.
b. That Petitioner No.1-Society was directed to remit Rs.7.5 Crores to Respondent No.4, and upon such remittance, all its bank accounts, including the one maintained with Respondent NVSK,J W.P.No.5212 of 2025 6 No.1 were to be unfrozen forthwith without any further restrictions."
It is further submitted that in compliance with the aforesaid order passed by the learned Sessions Court Respondent No.4 herein issued a letter dated 21.10.2024 to Respondent No.2 herein directing the immediate unfreezing of the bank account of Petitioner No.1-Society and permitting normal operations. Thereafter, in due compliance with the directions of the aforesaid order dated 19.10.2024, Petitioner No.1-Society duly remitted an amount of Rs.7.5 Crores to the account of Respondent No.4 herein on 24.10.2024.
4. The main grievance of the petitioners herein is that inspite of the directions given by the learned Sessions Court vide order dated 19.10.2024, respondent No.2 herein has refused to unfreeze the bank account of petitioner No.1-Society vide account bearing A/c.No.409001432511, which is being questioned in the present writ petition.
NVSK,J W.P.No.5212 of 2025 7
5. Learned counsel appearing for respondent No.2 has placed written instructions of RBL Bank - respondent No.2 herein, wherein it is submitted that about 54 directions have been received by various Law Enforcement Authorities ("LEA") and one from the Union Bank of India with respect to marking lien on the account bearing No.409001432511 excluding 10 additional operational lien marked as per NPCI Procedural Guidelines operation on the said account.
6. He further submitted that to the extent of 54 directions as per law enforcement authorities, the account to that extent would be unfreezed and that as per records there are total 10 number of operational lien aggregating to an amount of Rs.9,00,457.00/- marked in this account as directed under NPCI operational Guidelines and the same cannot be unfreezed at this point of time.
NVSK,J W.P.No.5212 of 2025 8
7. Learned counsel appearing for the petitioners would submit that by recording the aforesaid submissions made by learned counsel appearing for the 2nd respondent appropriate order be passed directing respondent No.2 to unfreeze the account of petitioner No.1-Society to the extent of 54 directions of the various law enforcement authorities by fixing some time frame.
8. In view of the aforesaid submissions and without going into the merits of the case, this Writ Petition is disposed of directing respondent No.2 to unfreeze the account of petitioner No.1-Society to the extent of 54 directions of the various law enforcement authorities within a period of one week from the date of receipt of a copy of this order. There shall be no order as to costs.
Miscellaneous applications, if any pending, shall stand closed.
_________________________________ JUSTICE N.V. SHRAVAN KUMAR March 20, 2025 PN NVSK,J W.P.No.5212 of 2025 9 THE HON'BLE SRI JUSTICE N.V. SHRAVAN KUMAR WRIT PETITION No.5212 of 2025 March 20, 2025 PN