Partly allowed

Axis Bank Ltd. v. the State of Karnataka by

Karnataka HC19 Sept 2024CRL.P/6885/2024

Case brief

AI extract

What is this about?

The High Court allowed a criminal petition seeking to quash specific conditions imposed by a Magistrate freezing a bank account. The Court held that requiring the bank to execute an indemnity bond was arbitrary and discriminatory, leading to the quashing of those conditions.

What did the court decide?

The impugned conditions No. 2 and 3 directing the petitioner to execute an indemnity bond are quashed, while other conditions remain unaltered.

Axis Bank Ltd. Vs the State of Karnataka by — Cheque Dishonour | Karnataka HC (2024)

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NC: 2024:KHC:39156 CRL.P No. 6885 of 2024

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 19^TH DAY OF SEPTEMBER, 2024

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BEFORE

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THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR CRIMINAL PETITION NO. 6885 OF 2024

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BETWEEN:

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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', 3^RD FLOOR, OPPOSITE SAMARTHESHWAR TEMPLE, LAW GARDEN, ELLIS BRIDGE, AHMEDABAD - 380 006, GUJARAT.

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Digitally signed by R HEMALATHA Location: HIGH COURT OF KARNATAKA

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AXIS BANK LTD, AND HAVING ONE OF ITS BRANCH OFFICE AT GROUND FLOOR, ROYAL PALACE, T-POINT, OPP: DEVI MANDIR, RAMGANJ CHORAH RAILWAY ROAD, HAPUR - 245 101. AND GROUND FLOOR B – 6, LAJPAT NAGAR – II, DELHI – 110 024. REPRESENTED BY ITS BRANCH HEAD, MR. ANKIT GUPTA AGED ABOUT 43 YEARS,

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2 - NC: 2024:KHC:39156 CRL.P No. 6885 of 2024

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ALSO AT: S/O SUDHIR GUPTA, HOUSE, NUMBER -79/9 KAISER GANJ, KAISER GANJ, KAISER GANJ, MEERUT, MEERUT, UTTAR PRADESH – 250 002.

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…PETITIONER

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(BY SRI. UNNIKRISHNAN M., ADVOCATE)

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AND:

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THE STATE OF KARNATAKA, BY CID, CYBER CRIME POLICE STATION, CID DIVISION, BANGALORE CITY. REPRESENTED BY S.P.P., HON'BLE HIGH COURT OF KARNATAKA, BANGALORE - 01.

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JYOTHI LAKSHMI G., AGED ABOUT 49 YEARS, D/O. G.S.GANAPATHY, RESIDING AT NO.202, 14^TH STREET, VINAYAKA NAGAR, DEVASANDRA, K.R.PURAM, BENGALURU - 560 036, KARNATAKA.

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…RESPONDENTS

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(BY SRI.M.R.PATIL, HCGP FOR R1)

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THIS CRL.P. IS FILED U/S 482 OF CR.P.C., PRAYING TO SET ASIDE THE ORDER DATED 20.11.2023 PASSED BY THE HONBLE 1ST ADDL. CMM, BANGALORE IN CR.NO.02/2023 I.E., ANNEXURE-C IN TERMS OF WHICH THE PETITIONERS ARE DIRECTED TO DEFREEZE THE CURRENT/SAVINGS ACCOUNT BEARING A/C NO.922020017472349 AND A/C NO.922020053554416 MAINTAINED

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NC: 2024:KHC:39156 CRL.P No. 6885 of 2024

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IN THE PETITIONERS BANK AND TRANSFER THE SAME TO THE ACCOUNT OF THE RESPONDENT NO.2.

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THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR

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ORAL ORDER

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The petitioner had filed an application under Section 451 and 457 of Cr.P.C to defreeze the subject account stating that he is no way connected to the online account, and the account is frozen by the investigation officer on the suspicion that the accused had purchased dollars from other petitioners online in Binance APP for Rs.1,87,000/-.

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The learned Magistrate allowed the application subject to certain terms and conditions. The petitioner is aggrieved by condition Nos.2 and 3.

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Heard the learned counsel for the petitioner and learned HCGP for the respondent-state.

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The petitioner is neither a victim of the online fraud nor the accused who were allegedly involved in the online fraud. The police in contravention of Sub-Section 3 of Section 102 of Cr.P.C issued a notice calling upon the Bank to defreeze the account of the petitioner.

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4 - NC: 2024:KHC:39156 CRL.P No. 6885 of 2024

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Learned Magistrate having allowed the application, committed an error in imposing condition Nos.2 and 3 after having directed the petitioner to execute an indemnity bond for a sum of Rs.1,87,000/- with one surety for the likesum. Therefore, the impugned condition imposed by the learned Magistrate is arbitrary and discriminatory. Accordingly, I pass the following:

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ORDER

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i. Criminal petition is allowed.

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ii. The impugned condition Nos.2 and 3 in order dated 20.11.2023 passed by the I Addl. Chief Metropolitan Magistrate, Bengaluru City, in Cr.No.02/2023 registered by the C.I.D. Cyber Crime Police at Bengaluru on the application filed under Section 451 and 457 of Cr.P.C. is hereby quashed.

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iii. The other conditions imposed are remained unaltered.

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Sd/(HEMANT CHANDANGOUDAR) JUDGE

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RKA List No.: 1 Sl No.: 85

Axis Bank Ltd. v. the State of Karnataka by

Case brief

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Axis Bank Ltd. v. the State of Karnataka by

Case brief

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