Kerala High Court
Asif .S vs Union Of India on 15 March, 2024
Author: Devan Ramachandran
Bench: Devan Ramachandran
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
WP(C) NO. 4787 OF 2024
PETITIONER:
ASIF .S
AGED 22 YEARS
S/O SAJAD, TC 81/1135(1), PALLINADA VEEDU,
POUND KADAVU, VALIYAVELI P.O,
THIRUVANANTHAPURAM, KERALA, PIN - 695021.
BY ADVS.
ALBIN A. JOSEPH
SUSANTH SHAJI
SIDHARTH O.
RESPONDENTS:
1 UNION OF INDIA
REPRESENTED BY THE SECRETARY, MINISTRY OF FINANCE,
NORTH BLOCK, NEW DELHI, PIN - 110001.
2 RESERVE BANK OF INDIA
REPRESENTED BY ITS, GENERAL MANAGER BRANCH OFFICE
BANERJI ROAD ERNAKULAM NORTH, KOCHI, PIN - 691310.
3 THE MANAGING DIRECTOR
THE FEDERAL BANK LIMITED. POST BOX NO. 103,
FEDERAL TOWERS, ALUVA ERNAKULAM, PIN - 683101.
4 THE MANAGER
FEDERAL BANK, KAZHAKUTTAM BRANCH
PADMANANBHAM BUILDING, KAZHAKUTTAM,
THIRUVANANTHAPURAM, PIN - 695582.
5 THE INSPECTOR OF POLICE
ECONOMIC OFFENCES WING, MIRA BHAYANDER VASAI VIRAR,
THANE DISTRICT. 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. 4787 OF 2024
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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 WP(C) NO. 4787 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, sufficiently protecting both the investigation, as also the account holders. I WP(C) NO. 4787 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. 4787 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 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 WP(C) NO. 4787 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, 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 WP(C) NO. 4787 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. 4787 OF 2024 -8- APPENDIX OF WP(C) 4787/2024 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 PHOTOSTAT COPY 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 PHOTOSTAT COPY 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