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

Petition allowed; order dated 29.06.2024 of the XXX Additional Chief Judicial Magistrate, Bengaluru in Crime No.197/2024 set aside; matter remanded to that Magistrate to reconsider the application under Sections 451 and 457 Cr.P.C. afresh after hearing the petitioner-bank; till disposal of the application, the bank restrained from releasing money from the subject account to any person.

Issue for consideration

Whether the order dated 29.06.2024 passed by the 30th Additional Chief Judicial Magistrate, Bengaluru in Crime No.197/2024, directing the petitioner-bank to defreeze A/c. No.924010025727616 and transfer the amount to respondent No.2, ought to be set aside and the matter remanded for fresh consideration after hearing the bank.

Court's answer

The issue in controversy in the present petition is directly and squarely covered by the judgment of this Court (Coordinate Bench) in Axis Bank Ltd. v. State of Karnataka (Crl.P.No.1787/2023 dated 14.12.2023); accordingly, the petition is disposed of in terms of that order.

Ratio / Principle

The petition is allowed; the order dated 29.06.2024 passed by the XXX Additional Chief Judicial Magistrate, Bengaluru in Crime No.197/2024 is set aside.

Key takeaways

Matter is remanded to the XXX Additional Chief Judicial Magistrate, Bengaluru to reconsider the application filed under Sections 451 and 457 Cr.P.C. afresh, after giving the petitioner-bank an opportunity of hearing.ratio¶64
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¶65

Detailed headnote1 paragraphs

Criminal Petition under Section 482 Cr.P.C. (482(Cr.PC)/528(BNSS)) filed by Axis Bank Ltd. challenging the order dated 29.06.2024 of the 30th Additional Chief Judicial Magistrate, Bengaluru in Crime No.197/2024 (Annexure-C), which directed the bank to defreeze Savings/Current Account No.924010025727616 and transfer the amount therein to the account of respondent No.2. Held: relying on and following the Coordinate Bench judgment in Axis Bank Ltd. v. The State of Karnataka and Anr., Crl.P.No.1787/2023 dated 14.12.2023, the Court allowed the petition, set aside the impugned order, remanded the matter to the XXX Additional Chief Judicial Magistrate, Bengaluru for reconsideration of the application under Sections 451 and 457 Cr.P.C. afresh after affording the petitioner-bank an opportunity of hearing, and, till disposal of that application, restrained the petitioner/bank from releasing the money in favour of any person from the subject account.

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 24^TH DAY OF JUNE, 2025

BEFORE

THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR CRIMINAL PETITION NO.8489 OF 2025 (482(Cr.PC)/528(BNSS))

BETWEEN:

Digitally signed by H K HEMA Location: HIGH COURT OF KARNATAKA

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 AND HAVING ONE OF ITS BRANCH OFFICE AT 25 SRINAGAR MAIN ROAD NEW GARIA, SOUTH 24 PARGANAS KOLKATA WEST BENGAL-700 094 REPRESENTED BY ITS BRANCH HEAD MR. SAUREN SAHA AGED ABOUT 50 YEARS ALSO AT URBAN SABU JAYAN 1^ST FLOOR, FLAT-1, PLOT NO.62 JAGATIPOTA MUKUNDAPUR SANAPURA, SOUTH 24, PARGANAS WEST BENGAL-700 099.

…PETITIONER

(BY SRI. M. UNNIKRISHNAN, ADVOCATE)

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AND:

THE STATE OF KARNATAKA BY KONANKUNTE POLICE STATION SUBRAMANYAPURA SUB-DIVISION BANGALORE DISTRICT REPRESENTED BY SPP HON'BLE HIGH COURT OF KARNATAKA BANGALORE-01.

SMT. VARALAKSHMI W/O. MADHUSUDAN AGED ABOUT 42 YEARS RESIDING AT HOUSE NO.424 5^TH CROSS, NEAR MARAMMA TEMPLE HARINAGAR, KOTTANOOR MAIN ROAD BENGALURU CITY, KARNATAKA-560 062.

…RESPONDENTS

(BY SRI. K. NAGESHWARAPPA, HCGP FOR R.1; R.2: NOTICE IS DISPENSED WITH VIDE

COURT ORDER DATED 24.06.2025.)

THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF CR.P.C., PRAYING TO SET ASIDE THE ORDER DATED 29.06.2024 PASSED BY THE HON'BLE COURT OF THE 30^TH ADDITIONAL CHIEF JUDICIAL MAGISTRATE, BENGALURU IN CRIME NO.197/2024 i.e., ANNEXURE-C IN TERMS OF WHICH THE PETITIONER IS DIRECTED TO DEFREEZE THE SAVINGS/CURRENT ACCOUNT BEARING A/C.NO.924010025727616 MAINTAINED IN THE PETITIONER'S BANK AND TRANSFER THE SAME TO THE ACCOUNT OF THE RESPONDENT NO.2, ETC.

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

CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR

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ORAL ORDER

In this petition, the petitioner has sought for the following

reliefs:

"a) To set-aside the Order, Dated: 29.06.2024 passed by The Hon'ble Court of the 30^th Additional Chief Judicial Magistrate, Bengaluru, in Crime No.197/2024 i.e., ANNEXURE 'C' in terms of which, the Petitioner is directed to defreeze the Savings / current account bearing A/c. No.924010025727616 maintained in the Petitioner's 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."

Heard learned counsel for the petitioner and learned

HCGP for respondent No.1 and perused the material on record.

In addition to reiterating the various contentions urged in the memorandum of petition and referring to the material on

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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 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.

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:

“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.

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.

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

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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:

ORDER

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.

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.

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.”

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

terms of the order passed in the case of Axis Bank Ltd. supra.

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6. Accordingly, I pass the following:

ORDER

i. The petition is hereby allowed .

ii. The order dated 29.06.2024 passed by the XXX Additional Chief Judicial Magistrate, Bengaluru in Crime No.197/2024 is hereby set aside.

iii. Matter is remanded to XXX Additional Chief Judicial 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.

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.

Subject to the aforesaid observations and directions, the petition stands disposed of.

Sd/(S.R.KRISHNA KUMAR) JUDGE

hkh.