Kerala High Court
Muhammed Cheriya Kavil vs Canara Bank on 16 March, 2026
2026:KER:23337
WPC No.34338 of 2025
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IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE M.A.ABDUL HAKHIM
MONDAY, THE 16TH DAY OF MARCH 2026 / 25TH PHALGUNA, 1947
WP(C) NO. 34338 OF 2025
PETITIONER
1 MUHAMMED CHERIYA KAVIL,
AGED 30 YEARS,
S/O ABDULLA C K, CHERIYA KAVIL HOUSE,
KUNNUMMAKKARA POST, VADAKARA, KOZHIKODE DISTRICT.,
PIN - 673308
2 ABDULLA C K,
AGED 74 YEARS,
S/O EBRAHIM, CHERIYA KAVIL HOUSE,
KUNNUMMAKKARA POST, VADAKARA, KOZHIKODE DISTRICT.,
PIN - 673308
BY ADVS.
SHRI.JASNEED JAMAL
SRI.P.SAMSUDIN
SMT.LIRA A.B.
SMT.DEVIKA E.D.
RESPONDENTS
1 CANARA BANK,
ORKKATTERI BRANCH
REPRESENTED BY ITS BRANCH MANAGER, EP VIII, 4647,
KSEB ROAD, ORKKATTERI, KOZHIKODE DISTRICT.,
PIN - 673501
2 THE BRANCH MANAGER,
THE CANARA BANK, ORKKATTERI BRANCH EP VIII, 4647,
KSEB ROAD, ORKKATTERI, KOZHIKODE DISTRICT.,
PIN - 673501
2026:KER:23337
WPC No.34338 of 2025
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3 THE DEPUTY SUPERINTENDENT OF POLICE
DCB, YOUNG BADAGAS ASSOCIATION, WENLOCK ROAD,
UPPER BAZAR, OOTY, TAMIL NADU.
EMAIL:[email protected]
ADDRESS OF R3 CORRECTED AS'CYBER CRIME POLICE
STATION, DISTRICT POLICE OFFICE, OOTY, NILGRIS
DISTRICT, TAMIL NADU, PIN - 643 001, EMAIL:
[email protected]' ADDRESS OF R3 IN WPC IS
CORRECTED AS ABOVE AS PER THE ORDER DATED 18.12.25
IN IA 02/2025 IN THE WP(C).
ADDL.R4 THE STATION HOUSE OFFICER
EDACHERI POLICE STATION, STATE HIGHWAY 54,
EDACHERI, PURAMERI, KOZHIKODE DISTRICT, KERALA.
PIN - 673502.
ADDL.R4 IMPLEADED AS PER THE ORDER DATED
02.02.2026 IN IA 01/2026 IN THE WP(C)
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION
ON 16.03.2026, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
2026:KER:23337
WPC No.34338 of 2025
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JUDGMENT
Dated this the 16th day of March, 2026
1. The Petitioner has filed this Writ Petition challenging the debit freezing/lien of his Bank account with the Respondent/Bank at the requisition of the Police authorities. The case of the Petitioner is that the Petitioner is not an accused in the Crime registered by the Police Authorities against some other persons, in which the requisition was made; that the Petitioner is in no way connected with the said Crime; and that the debit freezing/lien of the account is in violation of Sections 106 & 107 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) and Article 300A of the Constitution of India.
2. In spite of service of notice to the Respondent No.3, there is no appearance for the Respondent No.3. The learned Counsel for the Respondent/Bank, after getting instructions from the Bank, confirmed that the Bank has 2026:KER:23337 WPC No.34338 of 2025 4 received the Requisition from the Respondent No.3 for freezing/marking lien in the account of the Petitioner mentioned in the Writ Petition. It is submitted that the disputed amount is not stated in the Requisitions. Hence, the Bank has effected freezing of the account of the Petitioner.
3. The issue is covered by the decisions of this Court in Dr. Sajeer v. Reserve Bank of India [2024 (1) KLT 826], Nazeer K.T. v. Manager, Federal Bank, Makkaraparamba Branch [2024 KHC 768] and Abhiraj Rajan v. State of Kerala [2025 KHC 1676]. This Court has been consistently issuing the directions to the effect that the Bank is to permit the account holder to operate his account, limiting the lien to the amounts shown in the Requisitions received by the Bank so long as the Bank does not have any suspicion that the account is used for any financial cybercrime activities or money mule activities, making the frozen/lien marked 2026:KER:23337 WPC No.34338 of 2025 5 amount at the disposal of the jurisdictional Magistrate's Court.
4. Recently, the Indian Cyber Crime Co-Ordination Centre of the Ministry of Home Affairs of the Government of India has formulated an SOP for NCRP - CFCFRMS, Custody, Restoration of Money and Grievance Redressal 2026 to establish a fair and transparent system that prescribes a uniform process to be followed by all the Participating Entities. The SOP includes procedures to prevent misuse of the system of putting on hold an amount, seizure of an account and any property to help the victims of Cyber-Enabled Financial Crimes (CEFC), and to give interim custody of the amount to the victim and restoration of such property while ensuring accountability of all the participants for their action and inaction and providing avenues for time-bound grievance redressal for parties affected by actions taken based on 2026:KER:23337 WPC No.34338 of 2025 6 information provided by the system. It is intended that States and UTs, working with other Participating Entities, follow the SOP and are successful in preventing defrauded money from leaving the financial system, giving interim custody and restoration of the amount to the victim, and, in the process, help create a cybercrime- resilient financial ecosystem.
5. Clause 10 of the SOP provides for a time-bound Grievance Redressal Mechanism for the Account Holders in whose accounts the amounts are put on hold or whose account operation is suspended. It is for the Petitioner to work out his remedies in accordance with Clause 10 of the SOP, with respect to the frozen/lien/hold amount.
6. Since the Requisition issued by the Police Authorities does not show the disputed amount, it will be an injustice if the Petitioner is totally prevented from operating the 2026:KER:23337 WPC No.34338 of 2025 7 Bank Account. The Police Authorities are to be directed to inform the Bank of the disputed amount within a time frame, failing which the Petitioner shall be allowed to operate the Bank Account without any restriction.
7. Accordingly, this Writ Petition is disposed of with the following directions:
i) The Respondent/Bank is directed to seek, within a period of two weeks from the date of receipt of a copy of this judgment, the details of the disputed amount in the Requisition already communicated to the Bank from the Police Authorities, sending a copy of this judgment, and the Police Authorities shall communicate the details of the disputed amount in the Requisition already communicated to the Bank within a period of one month from the date of receipt of communication from the Bank and in case of default by the Police Authorities, the Bank shall lift the freeze/lien imposed on the Petitioner's account. In case of 2026:KER:23337 WPC No.34338 of 2025 8 getting knowledge of the details of the disputed amount from the Police Authorities, the Respondent/Bank shall confine the order of freeze/lien against the account of the Petitioner only to the extent of the disputed amount and permit operation of the account.
ii) The disposal of the frozen/lien/hold amount shall be in accordance with the above SOP.
iii) Petitioner is free to redress his grievance through the Grievance Redressal Mechanism provided under Clause 10 of the above SOP with respect to the frozen/lien/hold amount.
iv) The Respondent/Bank is free to effect further lien/hold/freeze in case of receipt of future requisitions.
Sd/-
M.A.ABDUL HAKHIM JUDGE Cak 2026:KER:23337 WPC No.34338 of 2025 9 APPENDIX OF WP(C) NO. 34338 OF 2025 PETITIONER EXHIBITS EXHIBIT P1 TRUE COPY OF NOTICE DATED 15-09-2025 RECEIVED BY FIRST PETITIONER FROM RESPONDENT BANK EXHIBIT P2 TRUE COPY OF NOTICE DATED 15-09-2025 RECEIVED BY SECOND PETITIONER FROM RESPONDENT BANK