Criminal Petition No. 3270 of 2025 · The High Court
Case Details
- 1 - NC: 2025:KHC:22673 CRL.P No. 3270 of 2025 HC-KAR IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR CRIMINAL PETITION NO. 3270 OF 2025 BETWEEN: AXIS BANK LTD., A BANKING COMPANY, CARRYING ON THE BANKING BUSINESS UNDER THE BANKING REGULATION ACT, 1949, INCORPORATED UNDER THE COMPANIES ACT, 1956 AND HAVING ITS REGISTERED OFFICE AT 'TRISHUL', 3RD FLOOR, OPPOSITE SAMARTHESHWAR TEMPLE, LAW GARDEN, ELLIS BRIDGE, AHMEDABAD – 380 006, GUJARAT. AND HAVING ONE OF ITS BRANCH OFFICE AT AXIS BANK LIMITED, GROUND FLOOR, SHOP NO.G-2 AND FIRST FLOOR, NO.F-1, F-2, F-3, F-4, ABHISHEK TOWER, PLOT NO.D-2, SHOPPING CENTRE, ALAKNANDA MARKET, ALAKNANDA, NEW DELHI – 110 019. REPRESENTED BY ITS BRANCH HEAD MR. AMIT KUMAR AGARWAL AGED ABOUT 41 YEARS. Digitally signed by SHARADAVANI B Location: High Court of Karnataka - 2 - NC: 2025:KHC:22673 CRL.P No. 3270 of 2025 …PETITIONER HC-KAR ALSO AT: S/O. NAND KUMAR AGARWAL FLAT NO.1004, 10TH FLOOR, KM-37, JAYPEE KOSMOS WISHTOWN SECTOR 134, NOIDA GAUTAM BUDDANAGAR, UTTAR PRADESH-201304. (BY SRI. UNNIKRISHNAN M., ADVOCATE) AND: 1. STATE OF KARNATAKA, BY NORTH CEN CRIME POLICE STATION, NORTH DIVISION, BANGALORE DISTRICT. REPRESENTED BY SPP, HON'BLE HIGH COURT OF KARNATAKA, BENGALURU – 560 001. 2. MR. KARTHIKEYA SHARMA YEMMANURU, S/O. RAVINDRANATH YEMMANURU, AGED ABOUT 36 YEARS, R/AT NO.181, 1ST FLOOR, BLUEJAY ATMOSPHERE, PHASE 2, KARIHOBANAHALLI, BENGALURU NORTH, BENGALURU - 560 073.
Legal Reasoning
Co-ordinate Bench of this Court in the case of Axis Bank Ltd., Vs. The State of Karnataka and Anr., Crl.P.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 - 7 - NC: 2025:KHC:22673 CRL.P No. 3270 of 2025 HC-KAR 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. 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 - 8 - NC: 2025:KHC:22673 CRL.P No. 3270 of 2025 HC-KAR 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:
Arguments
(BY SRI.CHANNAPPA ERAPPA, HCGP FOR R-1; SMT.LAKSHMI MENON, ADVOCATE FOR R-2) ** …RESPONDENTS - 3 - NC: 2025:KHC:22673 CRL.P No. 3270 of 2025 HC-KAR THIS CRL.P. IS FILED U/S 482 OF CR.P.C., (FILED U/S 528 BNNS) PRAYING TO SET ASIDE THE ORDER DATED 08.01.2025 PASSED BY THE HON'BLE 45TH ADDITIONAL CHIEF JUDICIAL MAGISTRATE, BENGALURU, IN CRIME NO.323/2024 I.E ANNEXURE C IN TERMS OF WHICH THE PETITIONER IS DIRECTED TO DEFREEZE THE CURRENT ACCOUNT BEARING A/C NO.923020040926751 MAINTAINED IN THE PETITIONER'S BANK AND TRANSFER THE SAME TO THE ACCOUNT OF THE RESPONDENT NO.2; TO PASS SUCH OTHER ORDERS AS MAY BE DEEMED EXPEDIENT IN THE CIRCUMSTANCE OF THE CASE AND IN THE INTEREST OF JUSTICE. THIS CRL.P., COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, petitioner seeks the following reliefs: " a) To set aside the Order Dated 08.01.2025 passed by the Hon'ble 45th Additional Chief Judicial Magistrate, Bengaluru, in Crime No.323/2024 i.e Annexure C in terms of which the petitioner is directed to defreeze the current account bearing A/c No.923020040926751 maintained in the petitioner's - 4 - NC: 2025:KHC:22673 CRL.P No. 3270 of 2025 HC-KAR 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. Per contra, the learned counsel for the respondent No.2 would reiterate the various contentions - 5 - NC: 2025:KHC:22673 CRL.P No. 3270 of 2025 HC-KAR urged in the statement of objections and submit that there is no merit in the petition and the same is liable to be dismissed. 4. In an identical circumstance, this Court, in the case of AXIS BANK LTD. Vs. The State of Karnataka and another in Criminal Petition No.6656/2025 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 12.07.2024 passed by the Hon'ble 45th Additional chief Judicial Magistrate, Bangalore, in Crime No.434/2024 i.e., Annexure-C directing the Petitioner to defreeze the current account bearing A/c. No.923020071136185 maintained in the Petitioner's Bank. - 6 - NC: 2025:KHC:22673 CRL.P No. 3270 of 2025 HC-KAR 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
Decision
ORDER i. ii Criminal Petition is allowed. 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: - 9 - NC: 2025:KHC:22673 CRL.P No. 3270 of 2025 HC-KAR i. Criminal Petition is allowed. ORDER ii. The order dated 12.07.2024 passed by the 45th Additional Chief Judicial Magistrate, Bengaluru in Crime No.434/2024 is hereby set aside. iii. Matter is remanded to 45th Additional Chief Judicial 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. 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." 5. 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. 6. Accordingly, I pass the following: - 10 - NC: 2025:KHC:22673 CRL.P No. 3270 of 2025 HC-KAR ORDER Criminal Petition is allowed. The impugned order dated 08.01.2025 passed by the 45th Additional Chief Judicial Magistrate, Bengaluru, in Crime No.323/2024 vide Annexure C, is hereby set aside. Matter is remanded to the 45th Additional Chief Judicial Magistrate, Bengaluru, to reconsider the application filed by the second respondent under Sections 451 and 457 of Cr.P.C. afresh, after giving the opportunity of hearing to the petitioner, within a period of one month from 07.07.2025. The petitioner and second respondent are directed to appear before the Trial Court on 07.07.2025, without awaiting further notice from the Trial Court. All rival contentions of both - 11 - NC: 2025:KHC:22673 CRL.P No. 3270 of 2025 HC-KAR parties and all aspects of the matter are kept open and no opinion is expressed on the same. Subject to the aforesaid observations and directions, the Petition stands disposed of. Sd/- (S.R.KRISHNA KUMAR) JUDGE BMV* List No.: 2 Sl No.: 35