Allowed¶65

Axis Bank Ltd. v. the State of Karnataka

Karnataka HC6 Feb 2025CRL.P/1070/2025

Case brief

AI extract

What is this about?

Axis Bank; defreeze frozen account; transfer amount to complainant; Sections 451 and 457 Cr.P.C.; opportunity of hearing to bank before release; order of 45th Addl. Chief Judicial Magistrate Bengaluru set aside; Crime No.260/2024; CRL.P No. 1070 of 2025; S.482 Cr.P.C.; S.528 BNSS; remand for fresh consideration; interim restraint on releasing money; disposal within eight weeks; coordinate bench orders followed.

What did the court decide?

Criminal Petition allowed; order dated 22.06.2024 of the 45th Addl. Chief Judicial Magistrate, Bengaluru in Crime No.260/2024 set aside; matter remanded for fresh consideration of the Sections 451/457 Cr.P.C. application after hearing the petitioner-bank; bank restrained from releasing money from the subject account till disposal; disposal directed within eight weeks. ¶65

Axis Bank Ltd. Vs the State of Karnataka — Company and Corporate | Karnataka HC (2025)

What the court decided

AI extract

Outcome

¶65

Issue for consideration

Whether the order dated 22.06.2024 passed by the 45th Addl. Chief Judicial Magistrate, Bengaluru in Crime No.260/2024, directing Axis Bank to defreeze account No.924010025669426 and transfer the amount to respondent No.2, ought to be set aside. +1 more

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Court's answer

In the light of the orders passed by coordinate benches in identical matters (quoted hereinabove), the court deemed it appropriate to dispose of this petition on the same course.

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Ratio / Principle

The Criminal Petition is allowed and the order dated 22.06.2024 passed by the 45th Additional Chief Judicial Magistrate, Bengaluru in Crime No.260/2024 is set aside.

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Key takeaways

The matter is remanded to the 45th Additional Chief Judicial Magistrate, Bengaluru to reconsider the application filed under Sections 451 and 457 of Cr.P.C. afresh, after affording opportunity of hearing to the petitioner.ratio¶69
Till the application is disposed of, the petitioner/bank is restrained from releasing the money in favour of any person from the subject account.ratio¶70
The concerned Court is directed to dispose of the application filed under Sections 451 and 457 of Cr.P.C. as expeditiously as possible, at any rate within eight weeks from the date of receipt of copy of this order.

Detailed headnote1 paragraphs

Axis Bank Ltd., under S.482 Cr.P.C. (filed under S.528 BNSS), challenged the order dated 22.06.2024 of the 45th Additional Chief Judicial Magistrate, Bengaluru in Crime No.260/2024 directing the bank to defreeze account No.924010025669426 and transfer the amount to the complainant (respondent No.2). Relying on coordinate-bench orders in identical matters (Crl.P.No.1787/2023, order dt.14.12.2023; Crl.P.No.13487/2023 c/w twelve connected petitions, order dt.12.02.2024, where defreeze/transfer orders passed without hearing the bank were set aside and matters remanded), M. Nagaprasanna J. allowed the petition, set aside the impugned order, remanded the Sections 451/457 Cr.P.C. application for fresh consideration after affording the bank a hearing, restrained the bank from releasing funds till disposal, and directed disposal within eight weeks.

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NC: 2025:KHC:5432 CRL.P No. 1070 of 2025

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 6^TH DAY OF FEBRUARY, 2025

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BEFORE

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THE HON'BLE MR JUSTICE M.NAGAPRASANNA

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CRIMINAL PETITION NO. 1070 OF 2025 (482(Cr.PC) / 528(BNSS))

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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, OPP. SAMARTHESHWAR TEMPLE, LAW GARDEN, ELLIS BRIDGE, AHMEDABAD - 380 006. GUJARAT.

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Digitally signed by VISHAL NINGAPPA PATTIHAL Location: High Court of Karnataka, Dharwad Bench

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AND HAVING ONE OF ITS BRANCH OFFICE AT BIKANER, RAJASTHAN, SREE GAURAV COMPLEX, DAGA MAIDAN, NEAR DAK BUNGALOW AND RAILWAY STATION RANI BAZAAR ROAD, BIKANER – 334004, RAJASTHAN.

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REPRESENTED BY ITS BRANCH HEAD, MR. JAGADISH JAT, AGED ABOUT 37 YEARS.

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ALSO AT S/O. SHRI RAM, WARD NO. 9, SHIV SHAKTI FARM HOUSE, KOLASAR, BIKANER, VTC KOLASAR,

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NC: 2025:KHC:5432 CRL.P No. 1070 of 2025

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SUB DISTRICT. BIKANER, DISTRICT: BIKANER, RAJASTHAN - 334 001. (BY SRI. UNNIKRISHNAN M., ADVOCATE)

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…PETITIONER

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AND:

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THE STATE OF KARNATAKA, BY CENTRAL CEN CRIME POLICE STATION, BANGALORE DISTRICT. REPRESENTED BY SPP, HON’BLE HIGH COURT OF KARNATAKA, BANGALORE – 01.

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SRI. A LEO CAMILO S/O. ARULNATHAN ALBERT, AGED ABOUT 39 YEARS, RESIDING AT NO.20, A GRACE COTTAGE, VENUGOPALSWAMY LAYOUT, EJIPURA VIVEK NAGAR, BENGALURU CITY, KARNATAKA – 560047.

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…RESPONDENTS

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(BY SRI. JAGADEESHA B. N. ADDL. SPP)

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THIS CRL.P IS FILED U/S 482 CR.PC (FILED U/S 528 BNNS) BY THE ADVOCATE FOR THE PETITIONER PRAYING THAT THIS HONOURABLE COURT MAY BE PLEASED TO SET ASIDE THE ORDER DATED 22.06.2024 PASSED BY THE HONBLE COURT OF THE 45^TH ADDL. CHIEF JUDICIAL MAGISTRATE, BENGALURU, IN CRIME NO.260/2024 I.E., ANNEXURE-C IN TERMS OF WHICH, THE PETITIONER IS DIRECTED TO DEFREEZE THE SAVINGS/ CURRENT ACCOUNT BEARING A/C. NO.924010025669426 MAINTAINED IN THE PETITIONERS BANK AND TRANSFER THE SAME TO THE ACCOUNT OF THE RESPONDENT NO.2.

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

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NC: 2025:KHC:5432 CRL.P No. 1070 of 2025

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ORAL ORDER

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The petitioner in this case is again Axis Bank.

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Heard Sri Unnikrishnan M., learned counsel for the petitioner and Sri. B.N. Jagadeesha, learned Additional State Public Prosecutor appearing for respondent No.1.

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Learned counsel appearing for the petitioner submits that in all identical cases coordinate benches have allowed the petitions and remitted the matter back to the office of the learned Magistrate to permit the petitioner to file his objections with liberty to appear and then consider applications filed under Sections 451 and 457 of Code of Criminal Procedure, 1973.

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I deem it appropriate to quote the orders so passed in Crl.P.No.1787/2023 dated 14.12.2023:

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"ORDER

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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

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NC: 2025:KHC:5432 CRL.P No. 1070 of 2025

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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.

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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.

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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.

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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

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NC: 2025:KHC:5432 CRL.P No. 1070 of 2025

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hear the petitioner. Accordingly, I pass the following:

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ORDER

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i. Criminal Petition is allowed . ii. The order dated 26.11.2021 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.452/2021 is hereby set aside.

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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.

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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."

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In Crl.P.No.13487/2023 c/w. Crl.P.Nos. 10201/2023, 12091/2023, 13483/2023, 13489/2023, 13611/2023, 13627/2023, 13940/2023, 13955/2023, 98/2024,

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128/2024, 356/2024, 357/2024 dated 12.02.2024:

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"7. Having heard the arguments of both side, perused the records. The Trial Courts have passed the impugned orders in these cases for de-freezing the accounts of the customers and releasing the amounts, without giving opportunity of hearing to the petitioner - Bank.

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NC: 2025:KHC:5432 CRL.P No. 1070 of 2025

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If the orders of the Magistrate are not complied with, it amounts to violation of court order and they face contempt. Therefore, before defreezing the accounts, it is necessary for the Trial Court to give opportunity to the petitioner of being heard in the matter and then pass appropriate orders since some of the customers do not have any amounts in their accounts and some of the customers are having lesser amount or zero balance. Hence, it is necessary for this Court to set aside the impugned orders with liberty to the petitioner to approach the various courts and after hearing the petitioner - Bank, the Courts can pass appropriate orders.

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8. Accordingly, I pass the following:

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ORDER

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(i) These Criminal Petitions are allowed. (ii) The impugned orders passed by the Trial Court given in the tabular form below are hereby set aside:

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Sl. No.	Crl. P. No.	Impugned order dated	Addl. Chief Metropolitan Magistrate	CR. No.
1	13487/2023	17/02/2023	I A.C.M.M.	1213/2022
2	10201/2023	07/07/2023	C.J.M., BANGALORE RURAL DIST.	Crl. Misc. No.177/2022
3	12091/2023	05/01/2023	II Addl. Sr. Civil Judge and JMFC Chikkaballapura	CR. No. 45/2022
4	13483/2023	13/10/2023	I A.C.M.M.	CR. No. 200/2023
5	13489/2023	11/08/2023	I A.C.M.M.	CR. No. 124/2023
6	13611/2023	30/09/2023	I A.C.M.M.	CR. No. 196/2023
7	13627/2023	12/04/2023	I A.C.M.M.	CR. No. 02/2023
8	13940/2023	18/07/2023	I A.C.M.M.	CR. No. 1060/2022
9	13955/2023	15/08/2023	I A.C.M.M.	CR. No. 05/2023

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NC: 2025:KHC:5432 CRL.P No. 1070 of 2025

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10	98/2024	08/08/2023	I A.C.M.M.	CR. No. 1051/2023
11	128/2024	24/07/2023	I A.C.M.M.	CR. No. 969/2022
12	356/2024	31/07/2023	C.J.M., BANGALORE RURAL DISTRICT	CR. No. 197/2023
13	357/2024	07/06/2023	I A.C.M.M.	CR. No. 136/2023

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(iii) The Trial Court is directed to hear the petitioner and the respondents and dispose of the matters in accordance with law, afresh.

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(iv) Till disposal of the cases by the Trial Court, the petitioner-Bank is restrained from releasing the amounts of de-freezed accounts of customers or complying the order of the Magistrate."

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In the light of the orders passed by the coordinate

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benches as quoted hereinabove, as also same was being

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held in other cases, I deem it appropriate to dispose of this petition by passing the following:

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ORDER

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i. Criminal Petition is allowed .

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ii. The order dated 22.06.2024 passed by the 45^th Additional Chief Judicial Magistrate, Bengaluru in Crime No.260/2024 is hereby set aside.

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NC: 2025:KHC:5432 CRL.P No. 1070 of 2025

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iii. Matter is remanded to 45^th Additional Chief Judicial Magistrate, Bengaluru to reconsider the application filed under Sections 451 and 457 of Cr.P.C. afresh, after affording opportunity of hearing to the petitioner.

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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.

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v. In the light of the issue pending for such consideration, I deem it appropriate to direct the concerned Court to dispose the application so filed under Sections 451 and 457 of Cr.P.C. as expeditiously as possible, at any rate, within eight weeks from the date of receipt of copy of this order.

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Ordered accordingly.

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Sd/(M.NAGAPRASANNA) JUDGE

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Naa List No.: 19 Sl No.: 24

Axis Bank Ltd. v. the State of Karnataka

Case brief

What is this about?

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Axis Bank Ltd. v. the State of Karnataka

Case brief

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