Axis Bank Ltd., Vs the State of Karnataka

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NC: 2025:KHC:20850 CRL.P No. 8128 of 2025

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HC-KAR

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17^TH DAY OF JUNE, 2025 BEFORE

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THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR CRIMINAL PETITION NO. 8128 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 CHANDANA B M Location: High Court of Karnataka

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AND HAVING ONE OF ITS BRANCH OFFICE AT GROUND FLOOR, JAMUNA AMRUT CHS LTD.. NEAR MTNL, S.V ROAD JOGESHWARI WEST. MUMBAI, MAHARASHTRA.- 400 102 REPRESENTED BY ITS BRANCH HEAD. MR.DIPTIRANJAN BISWAL AGED ABOUT 49 YEARS ALSO AT S/O ASHUTOSH BILALAL FLAT NO.102, BULD D 10 REU ESTATE, GHODUNDER ROAD NEAR HARANANDANI ESTATE PETAIL PADA, THANE WEST SANDORBOUGH M H- 400 607 …PETITIONER (BY SRI.UNNIKRISHNAN M., ADVOCATE)

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2 - NC: 2025:KHC:20850 CRL.P No. 8128 of 2025

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HC-KAR

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AND:

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THE STATE OF KARNATAKA SOUTH CEN CRIME POLICE STATION, DCP SOUTH DIVISION. BANGALORE DISTRICT. REPRESENTED BY SPP BENGALURU - 01.

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SMT.PRAVEENA ANEGUNDI, W/O. VENKATARAMAN, AGED ABOUT 51 YEARS, R/ AT NO.571, ROYAL RESIDENCY, 6^TH CROSS, J.P NAGAR, 9^TH PHASE, BENGALURU CITY, KARNATAKA - 560 078.

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…RESPONDENTS

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(BY SRI.NAGESHWARAPPA K., HCGP FOR R-1)

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THIS CRL.P FILED U/S 482 CR.P.C (U/S 528 BNSS) PRAYING TO SET ASIDE THE ORDER DTD 04.12.2024 PASSED BY THE HONBLE COURT OF THE 45th ACJM, BENGALURU IN CR.NO.1274/2024 i.e., ANNEXURE-C IN TERMS OF WHICH THE PETITIONER IS DIRECTED TO DEFREEZE THE SAVINGS/CURRENT ACCOUNT BEARING A/C NO.923020047287477 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 S.R.KRISHNA KUMAR

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NC: 2025:KHC:20850 CRL.P No. 8128 of 2025

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HC-KAR

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ORAL ORDER

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In this petition, the petitioner seeks the following reliefs:

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“a) To set-aside the Order, Dated 04.12.2024 passed by the Hon’ble Court of the 45^th Additional Chief Judicial Magistrate, Bengaluru, in Crime No.1274/2024 i.e., Annexure-‘C’ in terms of which, the petitioner is directed to defreeze the current account bearing A/c. No.923020047287477 maintained in the Petitioner’s Bank and transfer the same to the account of the Respondent No.2.

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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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Heard learned counsel for the petitioner and learned

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HCGP for 1^st respondent and perused the material on record.

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In addition to reiterating the various contentions urged in the memorandum of petition and referring to the material on record, learned counsel for the petitioner submits that the issue in controversy involved in the present petition is directly and squarely covered by the judgment of the Co-ordinate Bench of this Court in

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the case of Axis Bank Ltd., Vs. The State of Karnataka and Anr. – Crl.P.No.1787/2023 dated 14.12.2023 and the present petition may be disposed of in the above terms.

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NC: 2025:KHC:20850 CRL.P No. 8128 of 2025

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HC-KAR

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As rightly contended by the learned counsel for the petitioner, the issue in controversy in the present petition is covered by the judgment of this Court in the case of Axis Bank Ltd. Supra, wherein it is held as under:

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“The Petitioner which is a Financial Institution is before this Court challenging the order passed by 1^st 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 the State and

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NC: 2025:KHC:20850 CRL.P No. 8128 of 2025

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HC-KAR

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

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iii. Matter is remanded to 1^st 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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5. 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:20850 CRL.P No. 8128 of 2025

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HC-KAR

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In view of the above, petition is disposed of in terms of

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the order passed in Axis Bank Ltd.’s case supra.

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Accordingly, I pass the following:

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ORDER

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(i) Petition is hereby allowed.

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(ii) The order dated 04.12.2024 passed by the 45^th ACJM,

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Bangalore, in Crime No.1274/2024 is hereby set aside.

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(iii) Matter is remitted back to the 45^th ACJM, Bangalore, to reconsider the application filed under Sections 451 and 457 of Cr.P.C. afresh, after giving a n 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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Subject to the aforesaid observations and directions, the petition stands disposed of.

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Sd/(S.R.KRISHNA KUMAR) JUDGE

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BMC

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List No.: 1 Sl No.: 84

Axis Bank Ltd., v. the State of Karnataka

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Axis Bank Ltd., v. the State of Karnataka

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