Criminal Petition No. 7841 of 2025 · The High Court
Case Details
- 1 - NC: 2025:KHC:20194 CRL.P No. 7841 of 2025 HC-KAR IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 11TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR CRIMINAL PETITION NO.7841 OF 2025 (482(Cr.PC) / 528(BNSS)) 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, OPP: SAMARTHESHWAR TEMPLE, LAW GARDEN, ELLIS BRIDGE, AHMEDABAD - 380 006, GUJARAT. AND HAVING ONE OF ITS BRANCH OFFICE AT Digitally signed by MAHALAKSHMI B M Location: HIGH COURT OF KARNATAKA 1) D.NO.26-1-2/5, PADMASREE ARCADE, GAJUWAKA, VISAKHAPATNAM, ANDHRA PRADESH-530 026. 2) GROUND FLOOR, SHOP NO.73 & 74, DC 3, RAMBAUG ROAD, ADIPUR, KACHCHH, GUJARAT-370 205. REPRESENTED BY ITS BRANCH HEAD, MR. DAVULURI VENKATA PAVANASANKAR AGED ABOUT 45 YEARS, ASLO AT: S/O. SITARAMA ANJANEYULU, 54-18-39/2A, PLOT NO.1, ROAD NO.1 RADIO COLONY, VIJAYAWADA KRISHNA, ANDHRA PRADESH-520008.
Legal Reasoning
covered by the judgment of the 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 - 4 - NC: 2025:KHC:20194 CRL.P No. 7841 of 2025 HC-KAR by the judgment of this Court in the case of Axis Bank Ltd. supra, 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 - 5 - NC: 2025:KHC:20194 CRL.P No. 7841 of 2025 HC-KAR 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:
Arguments
(BY SRI UNNIKRISHNAN M., ADVOCATE) …PETITIONER - 2 - NC: 2025:KHC:20194 CRL.P No. 7841 of 2025 HC-KAR AND: 1. THE STATE OF KARNATAKA BY CYBER CRIME POLICE STATION, CYBER CRIME DIVISION, CRIMINAL INVESTIGATION DEPARTMENT (CID) NO.1, CARLTON HOUSE, PALACE ROAD, (DR.A.KRISHNA RAO ROAD), BENGALURU-560 001. REPRESENTED BY SPP HON’BLE HIGH COURT OF KARNATAKA, BANGALORE-01. 2. SRI. RAKESH SHETTY AGED ABOUT 57 YEARS, S/O. K. SUDHAKAR SHETTY, RESIDING AT FLAT NO.103, GREEN WOOD APARTMENT, S.L. METHAIS ROAD, FALNIR, MANGALURU CITY-575 001. …RESPONDENTS (BY SMT. SOWMYA R., HCGP FOR R-1) THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 CR.PC (FILED U/S 528 BNSS) PRAYING TO SET ASIDE THE ORDER DATED 30.10.2024 PASSED BY THE HON’BLE 1ST ADDITIONAL CHIEF JUDICIAL MAGISTRATE, BENGALURU, IN CRIME NO.78/2024 i.e., ANNEXURE-C IN TERMS OF WHICH, THE PETITIONERS ARE DIRECT TO DEFREEZE THE CURRENT ACCOUNTS BEARING A/C. NO.923020024484749 AND A/C NO.923020014083644 MAINTAINED IN THE PETITIONERS BANK AND TRANSFER THE SAME TO THE ACCOUNT OF THE RESPONDENT NO.2. THIS PETITION COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR - 3 - NC: 2025:KHC:20194 CRL.P No. 7841 of 2025 HC-KAR ORAL ORDER In this petition, the petitioner seeks the following reliefs: “To set-aside the Order, Dated 30.10.2024 passed by the Hon’ble 1st Additional Chief Judicial Magistrate, Bengaluru, in Crime No.78/2024 i.e., ANNEXURE-'C' in terms of which, the Petitioners are direct to defreeze the Current accounts bearing A/c. No.923020024484749 & A/c No.923020014083644 maintained in the Petitioners Bank and transfer the same to the account of the Respondent No.2.” 2. Heard learned counsel for the petitioner and learned HCGP for respondent No.1 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
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 - 6 - NC: 2025:KHC:20194 CRL.P No. 7841 of 2025 HC-KAR account.” 5. In view of the above, the petition is disposed of in terms of the order passed in the case of Axis Bank Ltd. supra. 6. Accordingly, I pass the following: ORDER i. ii. The petition is hereby allowed. The order dated 30.10.2024 passed by the I Additional Chief Judicial Magistrate, Bengaluru in Crime No.78/2024, is hereby set aside. iii. Matter is remanded to I 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. - 7 - NC: 2025:KHC:20194 CRL.P No. 7841 of 2025 HC-KAR Subject to the aforesaid observations and directions, the petition stands disposed of. Sd/- (S.R.KRISHNA KUMAR) JUDGE MBM List No.: 1 Sl No.: 80