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Axis Bank Ltd. v. the State of Karnataka by

Karnataka HC25 Mar 2025CRL.P/14481/2024

Case brief

AI extract

What is this about?

Criminal Petition (S.482 Cr.P.C. / S.528 BNSS) by Axis Bank Ltd. against the defreeze-and-transfer order of the 45th Addl. CMM, Bengaluru in Crime No.1490/2023; application under Sections 451 & 457 Cr.P.C. by complainant Ramya Veluri; frozen bank account of accused (A/c No.922020044180572); multiple FIRs/cases against accused across States; release orders exceeding available account balance; requirement of hearing the bank before unfreeze/transfer directions; petition allowed, impugned order set aside; Karnataka High Court, Hemant Chandangoudar J., 25.03.2025.

What did the court decide?

Setting aside of the order dated 24.01.2024 passed by the 45th Additional Chief Metropolitan Magistrate, Bengaluru in Crime No.1490/2023 (Annexure-C), which had directed the petitioner-Bank to defreeze the account and transfer the amount to respondent No.2.

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

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the order dated 24.01.2024 passed by the 45th Additional Chief Metropolitan Magistrate, Bengaluru in Crime No.1490/2023, directing the petitioner-Bank to defreeze the accused's account and transfer the amount to respondent No.2, should be set aside. +1 more

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Court's answer

The petition is allowed and the order dated 24.1.2024 passed in Crime No.1490/2023 by the learned 45th Additional Chief Metropolitan Magistrate, Bengaluru is hereby set aside.

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Ratio / Principle

Before passing an order directing the petitioner-Bank to unfreeze the accused's account and transfer the amount to the complainants' accounts, the learned Magistrate is required to hear the petitioner.

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Detailed headnote1 paragraphs

Axis Bank Ltd. filed Crl.P. No.14481/2024 under S.482 Cr.P.C. (S.528 BNSS) challenging the order dated 24.01.2024 of the 45th Additional Chief Metropolitan Magistrate, Bengaluru in Crime No.1490/2023, which directed the Bank to defreeze the savings/current account bearing A/c No.922020044180572 and transfer the amount to respondent No.2 (complainant). The Bank's concern was that the order surpasses the specified release amount and cannot be executed, numerous courts having issued directives to investigating agencies to unfreeze the accused's bank accounts; multiple cases stand registered against the accused within the State and across the country, and several Magistrates have passed release orders exceeding the balances in the subject accounts. The High Court Government Pleader suggested remand to the Jurisdictional Courts for fresh consideration of the application under Sections 451 and 457 Cr.P.C. with an opportunity of hearing to the petitioner. Holding that the learned Magistrate is required to hear the petitioner-Bank before passing an order directing unfreeze and transfer, Hemant Chandangoudar, J. allowed the petition and set aside the impugned order.

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NC: 2025:KHC:12650 CRL.P No. 14481 of 2024

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25^TH DAY OF MARCH, 2025

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BEFORE

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THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR CRIMINAL PETITION NO. 14481 OF 2024 (482(Cr.PC) /

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528(BNSS))

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BETWEEN:

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AXIS BANK LTD A BANKING COMPANY.

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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. OPPSAMARTHESHWAR 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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AND HAVING ONE OF ITS BRANCH OFFICE AT BORIVALI (EAST). MUMBAI, LATA APARTMENTS. KULUPWADI, WESTERN EXPRESS HIGHWAY. BORIVALI (EAST). MUMBAI - 400 066. REPRESENTED BY ITS BRANCH HEAD, MR. ABHISHEK KUMAR AGED ABOUT 45 YEARS.

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ALSO AT ABHISHEK KUMAR FLAT NO. 501 BIDG NO. 343 KALPATARU SHRISHTR SECTOR -3 MIRA ROAD EAST, BHAYANDER MIRA ROAD DIST THANA MAHARASHTRA-401107

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…PETITIONER

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(BY SRI. UNNIKRISHNAN M., ADVOCATE)

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NC: 2025:KHC:12650 CRL.P No. 14481 of 2024

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AND:

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THE STATE OF KARNATAKA BY SOUTHEAST CEN CRIME DCP SOUTHEAST DIVISION, POLICE STATION, BANGALORE DISTRICT. BANGALORE 01. REPRESENTED BY SPP HON'BLE HIGH COURT OF KARNATAKA, BANGALORE-01.

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SMT. RAMYA VELURI D/O. ADINARASIMHULU VELURI AGED ABOUT 28 YEARS. RESIDING AT 1920, 16TH MAIN, 17TH CROSS, SINGASANDRA. BENGALURU CITY. KARNATAKA-560 068.

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…RESPONDENTS

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(BY RAHUL RAI, HCGP FOR R1; SRI. VIVEK SETHIA., ADVOCATE FOR R2)

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THIS CRL.P IS FILED U/S 482 CR.PC (FILED U/S 528 BNSS) PRAYING TO SET ASIDE THE ORDER DATED 24.01.2024 PASSED BY THE HONBLE COURT OF THE 45TH ADDL. CMM, BENGLAURU IN CR.NO.1490/2023 I.E., ANNEXURE-C IN TERMS OF WHICH THE PETITIONER IS DIRECTED TO DEFREEZE THE SAVINGS/CURRENT ACCOUNT BEARING A/C NO.922020044180572 MAINTAINED 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 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

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NC: 2025:KHC:12650 CRL.P No. 14481 of 2024

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451 and 457 of Cr.P.C. by the complainants/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. The learned High Court Government Pleader for the respondent No.1 - State 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

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NC: 2025:KHC:12650 CRL.P No. 14481 of 2024

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amount to the accounts of the complainants, is required to hear the petitioner.

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Accordingly, the petition is allowed. The order dated 24.1.2024 passed in Crime No.1490/2023 by the learned 45^th Additional Chief Metropolitan Magistrate, Bengaluru is hereby set aside.

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Sd/- (HEMANT CHANDANGOUDAR) JUDGE

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BKM List No.: 3 Sl No.: 0

Axis Bank Ltd. v. the State of Karnataka by

Case brief

What is this about?

What did the court decide?

Axis Bank Ltd. v. the State of Karnataka by

Case brief

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