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

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

What the court decided

AI extract

Outcome

Setting aside of the order dated 25.11.2024 passed in Crime No.1030/2024 by the 45th Additional Chief Judicial Magistrate, Bengaluru, which had directed the petitioner bank to defreeze the account and transfer the amount to respondent No.2.

Issue for consideration

Whether the order passed by the Jurisdictional Magistrate directing the petitioner bank to defreeze the accused's account and transfer the amount to respondent No.2 can stand, given that it surpasses the specified release amount and multiple courts have issued directives to unfreeze the accused's bank accounts.

Court's answer

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

Ratio / Principle

The petition is allowed and the order dated 25.11.2024 passed in Crime No.1030/2024 by the learned 45th Additional Chief Judicial Magistrate, Bengaluru is set aside.

Detailed headnote1 paragraphs

Criminal Petition under S.482 Cr.P.C. (also filed under S.528 BNSS) by Axis Bank Ltd., represented by its Branch Head, challenging the order dated 25.11.2024 passed in Cr.No.1030/2024 by the 45th Chief Judicial Magistrate, Bengaluru (Annexure-C), which directed the bank to defreeze the savings/current account bearing A/C.No.923020054336500 maintained with it and transfer the amount to respondent No.2 (complainant), pursuant to an application under Sections 451 and 457 Cr.P.C. The Court noted that multiple cases are registered against the accused within the State and across the country, and multiple Jurisdictional Magistrates have ordered release of amounts to different complainants, in some cases exceeding the balance available in the subject accounts, making execution of such orders difficult for the bank. Held: before passing an order directing the petitioner bank to unfreeze the accused's account and transfer the amount to the complainants, the learned Magistrate is required to hear the petitioner. Petition allowed; the order dated 25.11.2024 was set aside.

1 -

NC: 2025:KHC:12667 CRL.P No. 1475 of 2025

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

BEFORE

THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR CRIMINAL PETITION NO. 1475 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.

Digitally signed by R HEMALATHA Location: High Court of Karnataka

AND HAVING ONE OF ITS BRANCH OFFICE AT DEFENCE COLONY NEW DELHI B-81, DEFENCE COLONY NEW DELHI -110024 REPRESENTED BY ITS BRANCH HEAD MR. DEEPAK KUMAR MITTAL AGED ABOUT 40 YEARS, ALSO AT S/O MAHESH CHAND MITTALS 535, NEAR VASANTH SCEMA MALLWARA GHAZIABAD, GHAZIABAD, UTTAR PRADESH 201 001.

…PETITIONER

(BY SRI. UNNIKRISHNAN M., ADVOCATE)

AND:

THE STATE OF KARNATAKA BY WHITEFIELD CEN CRIME POLICE STATION, DCP WHITE FILED DIVISION BANGALORE DISTRICT,

2 -

NC: 2025:KHC:12667 CRL.P No. 1475 of 2025

REPRESENTED BY SPP HONBLE HIGH COURT OF KARNATAKA BENGALURU-01.

SRI. AKHILESH KUMAR DAS S/O LATE ONKAR DAS, AGED ABOUT 51 YEARS, RESIDING AT GOLDEN BLOSSOM, APARTMENT 306, KUDUGODI WHITEFILED, BENGALURU CITY KARNATAKA -560 067

…RESPONDENTS

(BY SRI. RAHUL RAI, HCGP FOR R1;

NOTICE TO R2 IS SERVED & UNREPRESENTED)

THIS CRL.P IS FILED U/S 482 CR.PC (FILED U/S 528 BNNS) PRAYING TO SET ASIDE THE ORDER DATED 25.11.2024 PASSED BY THE HONBLE COURT OF THE 45TH CHIEF JUDICIAL MAGISTRATE, BENGALURU IN CR.NO.1030/2024 i.e., ANNEXURE-C IN TERMS OF WHICH THE PETITIONER IS DIRECTED TO DEFREEZE THE SAVINGS/CURRENT ACCOUNT BEARING A/C.NO.923020054336500 MAINTAINED IN THE PETITIONERS BANK AND TRANSFER THE SAME TO THE RESPONDENT NO.2.

THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR

ORAL ORDER

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 complainants/respondent No.2 directing the petitionerBank to defreeze the amount belonging to the accused and

3 - NC: 2025:KHC:12667 CRL.P No. 1475 of 2025

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. 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.

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

4 -

NC: 2025:KHC:12667 CRL.P No. 1475 of 2025

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, the petition is allowed. The order dated 25.11.2024 passed in Crime No.1030/2024 by the learned 45^th Additional Chief Judicial Magistrate, Bengaluru is hereby set aside.

Sd/- (HEMANT CHANDANGOUDAR) JUDGE

BKM List No.: 3 Sl No.: 0