Mr. Bilal Mohammed Noushad Vs the State of Kerala — Company and Corporate | Karnataka HC (2025)

Mr. Bilal Mohammed Noushad Vs the State of Kerala — Company and Corporate | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Eighth respondent (Axis Bank) directed to communicate to the petitioner the amount marked for lien and to permit him to operate the account beyond the lien-marked amount; on production of a certified copy of the order within two weeks, the Bank shall inform the lien amount and lift restrictions on the balance forthwith; if no amount stands marked on lien, petitioner to pursue remedies in accordance with law.

Issue for consideration

Whether the eighth respondent Bank should be directed to confine the freeze/lien on the petitioner's account to the disputed amount received through the money trail, to communicate that lien-marked amount to him, and to permit operation of the account for the balance. +1 more

Court's answer

The petition is disposed of directing the eighth respondent Bank to communicate to the petitioner the amount marked for lien by the authorities and to permit him to operate the account beyond the amount marked for lien.

Ratio / Principle

On the petitioner filing a certified copy of the order within two weeks, the Bank shall inform the amount marked for lien and permit operation of the account beyond such amount forthwith.

Key takeaways

If the authorities have not marked any amount to be on lien, the petitioner must avail his remedy in accordance with law.ratio¶68
The disposal is expressly made without prejudice to the petitioner's rights; the Court did not decide the larger question whether account holders must receive due information of lien-marked amounts on receipt of a complaint.obiter¶60

Detailed headnote1 paragraphs

Writ Petition (GM-POLICE), High Court of Karnataka (B M Shyam Prasad, J.), disposed on 14-11-2025. Petitioner's Axis (NRO) account No. 923010050026826 stood frozen by respondent 8 Bank following police communications under Section 102 CrPC 1973 and Section 106 BNSS 2023 (cyber-crime money trail). The Court disposed of the petition directing the Bank to communicate the amount marked for lien and to permit operation of the account beyond that amount; on filing a certified copy within two weeks the Bank shall inform the lien amount and restore operation of the balance forthwith. The Court took note of the Circular dated 20.07.2024 and Standing Order No.1041 dated 18.03.2025 calling upon police authorities to refrain from freezing accounts without justifiable reasons and to confine any freeze to the suspected transaction. Disposal was made without prejudice to the petitioner's rights, leaving open the larger question of disclosure of lien-marked amounts to account holders; if no amount is marked on lien, the petitioner must seek remedies in accordance with law.

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 14^TH DAY OF NOVEMBER, 2025

BEFORE

THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 18139 OF 2025 (GM-POLICE)

BETWEEN:

MR. BILAL MOHAMMED NOUSHAD AGED ABOUT 31 YEARS S/O MOHAMMED NAUSHAD R/AT NO. 203, PRESIDIUM APARTMENTS ATTAVARA, MANGALURU KARNATAKA 575 001.

…PETITIONER

(BY SRI. NANDEESH.,ADVOCATE)

AND:

Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA

THE STATE OF KERALA REP BY THE STATE POLICE CHIEF POLICE HEAD QUARTERS, VAZHUTHACAUD THIRUVANANTHAPURAM KERALA 695 014.

THE DISTRICT POLICE CHIEF (RURAL) MUNNAR ROAD ALUVA, ERNAKULAM KERALA 683 101.

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THE IP SHO/INSPECTOR OF POLICE ANGAMALY POLICE STATION, ERNAKULAM RURAL, ANGAMALY KERALA 683 572

THE HEAD OF POLICE FORCE/ THE DIRECTOR GENERAL OF POLICE POST BOX NO. 601, DR. RADHAKRISHNAN SALAI MYLAPORE CHENNAI 600 004.

THE ADDITIONAL DIRECTOR GENERAL OF POLICE CYBER CRIME WING NO. 3, DR NATESAN ROAD, POLICE TRAINING COLLEGE CAMPUS,

3^RD FLOOR CYBER CRIME WING, ASHOK NAGAR CHENNAI 600 083.

THE COMMISSIONER OF POLICE GRATER CHENNAI POLICE, VEPERY CHENNAI 600 004.

THE INSPECTOR OF POLICE CYBER CRIME POLICE STATION OFFICE OF THE COMMISSIONER OF POLICE VEPERY CHENNAI 600 007.

THE AXIS BANK LTD., A BANKING COMPANY, CARRYING ON THE BAKING BUSINESS, UNDER THE BANKING REGULATION ACT 1949 INCORPORATED UNDER

THE COMPANIES ACT 1956

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REP BY BRANCH MANAGER.

…RESPONDENTS

(BY SRI. SHANTHI BHUSHAN A/W SRI. P. PRASANNA KUMAR A/W SRI. H.V. BHANUPRAKASH AMICUS CURIAE SMT. JAI M PATIL., ADVOCATE FOR R1; SRI. VIGNESH V SHETTY., ADVOCATE FOR R8)

THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT THE RESPONDENT NO.8, TO LIEN MARK TO THE EXTENT OF DISPUTED AMOUNT, WHICH EXACTLY RECEIVED BY PETITIONER BANK ACCOUNT FROM MONEY TRAIL. ANNEXURE AL TO H2; B) ISSUE WRIT OF MANDAMUS DIRECT THE RESPONDENT NO.8, TO WHILE COMPLYING THE POLICE OFFICIAL NOTICE U/S 102 OF CODE OF CRIMINAL PROCEDURE CODE, 1973 AND U/S 106 OF BHARATIYA NAGARIK SURAKSHA SANHITA, 2023 INSTEAD OF DEBIT FREEZING OR FREEZING THE ENTIRE OPERATION OF PETITIONER AXIS (NRO) BANK ACCOUNT I.E., 923010050026826, IFSC CODE UTIB0005286, LIEN MARK ONLY TO THE EXTENT OF DISPUTED AMOUNT, WHICH EXACTLY RECEIVED BY PETITIONER BANK ACCOUNT FROM MONEY TRAIL. ANNEXURE AL TO H2.

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

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CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD

ORAL ORDER

The petitioner seeks directions to the eighth respondent [Bank] to de-freeze his account and to permit him to operate his bank account. This Court has heard not just Sri Nandeesh, the learned counsel who is on record for the petitioner but also the learned counsels for the Bank and Sri H.V. Bhanu Prakash, the learned Additional Advocate General, Sri P. Prasanna Kumar and Sri Shanti Bhushan H, the learned amici curiae , who are assisting this Court in disposal of similar matters.

The petitioner's grievance is because the Bank has frozen his account. The Bank has frozen his account because of communication from the Police department. Sri Nandeesh submits, with the advantage of the arguments that have been advanced

on the larger question on whether the account

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holders must receive due information about the amounts marked for lien on receipt of a complaint, that the grievance of the petitioner would be addressed if this Court disposes of the petition with directions to the Bank to limit freezing to the amount marked for lien by the concerned Police and permit him to operate the account beyond the amount marked for lien.

Sri H.V. Bhanu Prakash and Sri Shanthi Bhushan H are categorical that instructions have been issued to all the Banks to limit the de-freezing to the amounts marked for lien and not restrict the account holders from operating the accounts beyond the amounts marked for lien. In fact, Sri H.V. Bhanu Prakash invites this Court's attention to the Circular dated 20.07.2024 and the Standing Order No.1041 dated 18.03.2025 to emphasize that the Police Investigation Authorities within the State have been called upon not to issue any directions to freeze the

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bank accounts without justifiable reasons and if an

account has to be frozen, it should only be to the extent of the suspected transaction. The relevant part

of the Circular reads as under:

"�ಾವ��ೇ ತ��ೆ ಸಂಬಂಧಆ�ೋ�ತವ��ಅಥ�ಾ ಇತ�ೆ �ಾವ��ೇ ವ��ಗಳ ಅಥ�ಾ ಸಂ�ೆ�ಗಳ �ಾ�ಂ �ಾ!ೆಗಳ"# ತ��ೆ$ೆ ಸಂಬಂ%&ದ (ತ� ಜ* ಆ+ದ,"# ಅಥ�ಾ ಇತರ ಸಂದಭ/ಗಳ"# ಈ 1ೆಳ+ನ ಕ4ಮಗಳನು7 ಅನುಸ8ಸತಕ9ದು, .

1) (ದಲ;ೆಯ�ಾ+ಸ1ಾರಣ>ಲ#�ೆ �ಾವ��ೇ�ಾ�ಂ �ಾ!ೆಗಳನು7 ?4ೕ@ Aಾಡತಕ9ದ,ಲ# . ಒಂದು �ೇDೆ ?4ೕ@ Aಾಡುವ ಸಂದಭ/ ಬಂದ"# ಸಂಶ�ಾಸFದ (ತ� (Lien Amount) ವನು7 Aಾತ4 ?4ೕ@ Aಾಡತಕ9ದು, . ಸಂಪHಣ/ �ಾ�ಂ �ಾ!ೆಯನು7 ?4ೕ@ Aಾಡತಕ9ದ,ಲ# .

2) ಒಂದು �ೇDೆ ಸಂಪHಣ/ �ಾ!ೆಯನು7 ?4ೕ@Aಾಡ�ೇ1ಾದ"#ಸೂಕ� ಸಮIಾJK ಮತು� ಸ1ಾರಣಗDೆLಂM$ೆ ತಮ$ೆ ಸಂಬಂಧಪಟO ಅಪರ P"ೕQ ಆಯುಕ�ರು ರವ8ಂದ "Rತ ಅನುಮS ಪTೆದು ?4ೕ@Aಾಡುವ�ದು .

3) �ಾವ��ೇ �ಾ�ಂ ;ೊಂM$ೆ ಪತ4 ವ�ವUಾರAಾV�ಾಗ Bankers Books Evidence Act-1891 ನ"# �ೕVರುವ ಸೂಚ;ೆಗಳನು7 ಕTಾXಯ�ಾ+Yಾಲ;ೆ Aಾಡತಕ9ದು, .

1. �ಾವ��ೇ �ಾ�ಂ �ಾ!ೆಗಳನು7 ಮತು� �ಾ!ೆಗಳ Lien Amount ಗಳನು7 ?4ೕ@AಾVದ"# . ಕೂಡ]ೆ ಈAಾ^Sಯನು7 ಸಂಬಂಧಪಟO ;ಾ��ಾಲಯ1ೆ9 ಕTಾXಯ�ಾ+ಸ"#ಸತಕ9ದು, .

5) ಈ ಸು!ೊ�ೕ]ೆಯನು7 _ೕ8 ವS/ಸುವ ತ��ಾ%1ಾ8ಗಳ >ರುದ` ಸUಾಯಕ P"ೕQ ಆಯುಕ�ರು / ಉಪ P"ೕQ ಆಯುಕ�ರುಗಳb c&�ನಕ4ಮ1ಾ9+ವರMಸ"#ಸತಕ9ದು, ."

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In the light of this, the petitioner seeks disposal of the petition, with a direction to the Bank to limit the freezing to the amount marked for lien and this Court is of the view that the petition, without prejudice to the petitioner's rights, otherwise must be disposed of directing the Bank to communicate the amount marked for lien as part of investigation and permit the petitioner to operate the account otherwise. As such, the following:

ORDER

[i] The petition is disposed of directing the

eighth respondent - Bank to communicate to the petitioner the amount that is marked for lien by the authorities and also permit him to operate the account beyond the amount marked for lien.

[ii] The petitioner is reserved with liberty to file a certified copy of this order within

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two [2] weeks from the date of receipt of a copy of this order and the Bank shall inform the amount marked for lien and permit the petitioner to operate the account beyond such amount forthwith.

[iii] It is needless to observe that if the authorities for reasons have not marked the amount to be on lien, the petitioner must avail his remedy in accordance with law.

Sd/(B M SHYAM PRASAD) JUDGE

NV List No.: 1 Sl No.: 0