Criminal Petition No. 7659 of 2025 · The High Court
Case Details
- 1 - NC: 2025:KHC:22309 CRL.P No. 7659 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. 7659 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 GROUND FLOOR SHOP NO.43, 44, 45 AND 46 SHREEJI MARKET, PWD ROAD, LEASE NO.86/1962, 09/1986, 29/1987, SANCHORE, JALORE DISTRICT, RAJASTHAN-343 041. REPRESENTED BY ITS BRANCH HEAD, MR. RAMESHWAR GODARA AGED ABOUT 31 YEARS, ALSO AT: C/O KHERAJRAM GODARA, DHOLANODS, KHOOBRI BERI, BARMAR, RAJASTHAN -344033 (BY SRI. UNNIKRISHNAN M., ADVOCATE) AND: 1. THE STATE OF KARNATAKA BY BENGALURU CEN CRIME POLICE STATION, Digitally signed by SUMA Location: HIGH COURT OF KARNATAKA …PETITIONER - 2 - NC: 2025:KHC:22309 CRL.P No. 7659 of 2025 HC-KAR
Facts
BANGALORE DISTRICT DIVISION, BANGALORE DISTRICT. REPRESENTED BY SPP HON'BLE HIGH COURT OF KARNATAKA, BANGALORE-01 2. GOUTAM VENKATESHAIAH S/O VENKATESHAIAH, AGED ABOUT 35 YEARS, RESIDING AT NO.317, NISARGA KEERTHANA APARTMENT, CHANDAPURA, ANEKAL ROAD, TERRACO N RESIDENCY, SURYA NAGAR, BOMMASANDRA, BENGALURU-560 081 …RESPONDENTS
Legal Reasoning
covered by the judgment of a coordinate Bench of this Court in the case of Axis Bank Ltd., v. The State of Karnataka and Anr., - 4 - NC: 2025:KHC:22309 CRL.P No. 7659 of 2025 HC-KAR [Crl.P No.1787/2023 disposed of on 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., v. The State of Karnataka and Anr., (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. - 5 - NC: 2025:KHC:22309 CRL.P No. 7659 of 2025 HC-KAR 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 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: i. ii.
Arguments
(BY SRI.NAGESHWARAPPA K., HIGH COURT GOVERNMENT PLEADER FOR RESPONDENT NO.1; VIDE ORDER DATED 25.06.2025, NOTICE TO RESPONDENT NO.2 IS DISPENSED WITH) THIS CRL.P IS FILED UNDER SECTION 482 CR.PC (FILED U/S 528 BNSS) PRAYING TO SET ASIDE THE ORDER DATED 10.06.2024 PASSED BY THE HON'BLE CHIEF JUDICIAL MAGISTRATE, BENGALURU RURAL DISTRICT, BENGALURU IN CRIME NO.170/2024 I.E ANNEXURE 'C' IN TERMS OF WHICH, THE PETITIONER IS DIRECTED TO DEFREEZE THE SAVINGS / CURRENT ACCOUNT NO.923020047810491 MAINTAINED IN THE PETITIONER'S BANK AND TRANSFER THE SAME TO THE ACCOUNT OF THE RESPONDENT NO.2. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - NC: 2025:KHC:22309 CRL.P No. 7659 of 2025 HC-KAR CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, the petitioner seeks the following reliefs: “a) To set aside the Order, Dated: 10.06.2024 passed by the Hon'ble Chief Judicial Magistrate, Bangalore Rural District, Bangalore in Crime No.170/2024 i.e ANNEXURE 'C' in terms of which, the Petitioner is directed to defreeze the Savings / current account bearing No.923020047810491 maintained in the Petitioner's 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. Heard learned counsel for the petitioner and learned HCGP for respondent No.1. 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 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. iv. Till the application is disposed of, the petitioner/bank is restrained from releasing the - 6 - NC: 2025:KHC:22309 CRL.P No. 7659 of 2025 HC-KAR 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., v. The State of Karnataka and Anr. [Crl.P No.1787/2023 disposed of on 14.12.2023]. 6. Accordingly, I pass the following: i. ii. ORDER Criminal Petition is allowed. The order dated 10.06.2024 passed by the Chief Judicial Magistrate, Bengaluru Rural District, Bengaluru, in Crime No.170/2024 is hereby set aside. iii. Matter is remanded to the Chief Judicial Magistrate, Bengaluru Rural District, 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:22309 CRL.P No. 7659 of 2025 HC-KAR 7. Subject to the aforesaid observations and directions, the Petition stands disposed of. In view of disposal of this petition, I.A No.1/2025 for stay does not survive for consideration and the same stands rejected. Sd/- (S.R.KRISHNA KUMAR) JUDGE SMA List No.: 1 Sl No.: 12