Axis Bank Ltd., Vs the State of Karnataka

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NC: 2025:KHC:7954 CRL.P No. 2037 of 2025

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 20^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. 2037 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, Dharwad

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AND HAVING ONE OF ITS BRANCH OFFICE AT:

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GROUND FLOOR, PROPERTY NO. 73/69(OLD NO.4), CHAKRATA ROAD, DEHRADUN, UTTARAKHAND, PIN – 248001.

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GROUND FLOOR, SHOP NO.12, KHASRA NO.85/L AND 85/2, CITY COURT, DLF CITY, SIKANDERPUR GHOSI, SECTOR 25A TEHSIL DISTRICT, GURGAON - 122 004 HARYANA.

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NC: 2025:KHC:7954 CRL.P No. 2037 of 2025

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REPRESENTED BY ITS BRANCH HEAD,

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MR. EKTA SIROHI, AGED ABOUT 43 YEARS, ALSO AT: R/O. VINOD SIROHI 99, ARYANAGAR BLOCK-2, RAJPUR ROAD, DEHRADUN, UTTARKHAND- 248001.

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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 WEST CEN CRIME POLICE STATION, HALASURU GATE SUB-DIVISION, BANGALORE DISTRICT, REPRESENTED BY SPP HON'BLE HIGH COURT OF KARNATAKA, BANGALORE- 01.

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SMT. LALITHA M W/O. ANANDA R, AGED ABOUT 42 YEARS, RESIDING AT NO.214, 7^TH CROSS, VIJAYASHREE LAYOUT, MYLASANDRA, KENGERI, BANGALURU CITY, KARNATAKA - 560 059.

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…RESPONDENTS

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

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THIS CRIMINAL PETITION IS FILED U/S 482 CR.PC BY THE ADVOCATE FOR THE PETITIONER PRAYING THAT THIS HONOURABLE COURT MAY BE PLEASED TO SET ASIDE THE ORDER DATED 24.01.2024 PASSED BY THE HONBLE COURT OF THE 45^TH ADDITIONAL CHIEF METROPOLITAN MAGISTRATE, BENGALURU, IN CRIME NO.122/2023 I.E., ANNEXURE -C IN TERMS OF WHICH, THE PETITIONER IS DIRECTED TO

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NC: 2025:KHC:7954 CRL.P No. 2037 of 2025

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DEFREEZE THE SAVINGS / CURRENT ACCOUNT BEARING (1) A/C NO.922020037350876 AND (2) A/C. NO. 921020044125303 MAINTAINED IN THE PETITIONERS 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.

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

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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

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the petitioner and Sri. B.N. Jagadeesha, learned Additional State Public Prosecutor along with Sri.Jagadeesh B.N., for respondent No.1.

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Learned counsel appearing for the petitioner

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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

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NC: 2025:KHC:7954 CRL.P No. 2037 of 2025

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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 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

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NC: 2025:KHC:7954 CRL.P No. 2037 of 2025

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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:

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ORDER

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i. Criminal Petition is allowed .

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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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NC: 2025:KHC:7954 CRL.P No. 2037 of 2025

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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, 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. 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.,	Crl. Misc.

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NC: 2025:KHC:7954 CRL.P No. 2037 of 2025

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			BANGALORE RURAL DIST.	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
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 benches as quoted hereinabove, as also same was being held in other cases, I deem it appropriate to dispose of this petition by passing the following:

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NC: 2025:KHC:7954 CRL.P No. 2037 of 2025

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ORDER

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i. Criminal Petition is allowed .

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ii. The order dated 24.01.2024 passed by the 45^th Additional Chief Metropolitan Magistrate, Bangalore in Cr.No.122/2023 is hereby set aside.

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iii. Matter is remanded to I Additional Chief Metropolitan Magistrate, Bangalore 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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NC: 2025:KHC:7954 CRL.P No. 2037 of 2025

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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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RHR/List No.: 19 Sl No.: 30

Axis Bank Ltd., v. the State of Karnataka

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Axis Bank Ltd., v. the State of Karnataka

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