Axis Bank Ltd. Vs the State of Karnataka

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NC: 2025:KHC:52957 WP No. 32664 of 2025

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HC-KAR

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 11^TH DAY OF DECEMBER, 2025

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BEFORE

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THE HON'BLE MR. JUSTICE MOHAMMAD NAWAZ WRIT PETITION NO. 32664 OF 2025 (GM-RES)

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BETWEEN:

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AXIS BANK LTD (A BANKING COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956) B-115, SHANTI TOWERS GROUND FLOOR HAWA SADAK, CIVIL LINES SHANTI TOWER, CIVIL LINES, JAIPUR - 302 006

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REPRESENTED BY POWER OF ATTORNEY HOLDER ABHISHEK RINAWA

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…PETITIONER

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Digitally signed by LAKSHMI T Location: High Court of Karnataka

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(BY SRI. MANOJ K., ADVOCATE)

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AND:

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THE STATE OF KARNATAKA REP BY CENTRAL CEN CRIME POLICE STATION, BANGALORE REPRESENTED BY ITS STATE PUBLIC PROSECUTOR, SPP OFFICE, HIGH COURT BLDG., DR. B.R. AMBEDKAR VEEDHI, BENGALURU - 560 001.

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NC: 2025:KHC:52957 WP No. 32664 of 2025

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HC-KAR

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STANLEE FABRICATIONS PVT.LTD. PROP. ASHISH KUMAR MALIK S/O ABAANI MOHAN MALIK NO.1667, 2^ND CROSS, DR. RAJ KUMAR ROAD, 3^RD STAGE, PRAKASH NAGAR SRIRAMPURA BENGALURU - 560 021 (A COMPANY INCORPORATED UNDER THE COMPANIES ACT)

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…RESPONDENTS

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(BY SRI. RAHUL RAI K., HCGP FOR R1)

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THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA READ WITH 528 OF THE BNSS, 2023 PRAYING TO SET ASIDE THE ORDER DATED 3.6.2025, PASSED BY THE LEARNED 45^TH ADDL. CHIEF JUDICIAL MAGISTRATE, BENGALURU, IN CRIME NO.171/2025, WHEREBY THE PETITIONER BANK WAS DIRECTED TO DEFREEZE THE ACCOUNT AND TRANSFER INR.11,32,204.00 TO THE 2^ND RESPONDENT AND THE IMPUGNED ORDER DATED 28.08.2025, PASSED BY THE LEARNED CITY CIVIL AND SESSIONS JUDGE, AT BENGALURU (CCH-67) IN CRIMINAL REVISION PETITION NO. 395/2025 AND ETC.

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

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CORAM: HON'BLE MR. JUSTICE MOHAMMAD NAWAZ

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NC: 2025:KHC:52957 WP No. 32664 of 2025

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HC-KAR

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ORAL ORDER

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The order dated 03.06.2025 passed by the XLV ACJM, Bengaluru, on the application filed by respondent No.2 in Crime No.171/2025 is assailed in this petition.

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The learned Magistrate vide impugned order has directed the Office to issue intimation to the concerned Investigating Officer, to direct the Axis Bank i.e., the petitioner herein to defreeze Account No.921020017685616 belonging to the accused and to transfer Rs.11,32,204/- to the account of the applicant held at Kotak Mahindra Bank Account No.0648581916.

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The learned Magistrate has also directed the applicant to execute the indemnity bond for the amount

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with a condition to indemnify the said amount against third party claim and also directed to deposit the said amount as and when directed by the Court.

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The petitioner/Axis Bank is aggrieved by the order, on the ground that, there are several crimes

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4 - NC: 2025:KHC:52957 WP No. 32664 of 2025

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HC-KAR

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registered in respect of the same account maintained by

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the accused and the petitioner was directed to freeze the account and mark lien. It is contended that the order passed by the learned Magistrate was, without hearing the petitioner and if the petitioner was heard before passing the order, he would have brought to the notice of the Court about the lien on the account of the accused in respect of other crimes.

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In similar circumstances, a Co-ordinate Bench of

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this Court in Crl.P.No.1569/2025 vide order dated 30.08.2025, provided an opportunity to the petitioner/Financial Institution to furnish details of recovery claims or multiple orders, if any and directed the learned Magistrate to pass necessary orders within the time frame. The operative portion of the said order is extracted hereunder :

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"(i) The petition is allowed.

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(ii) The order dated 16.03.2024 passed in Crime No.621/2023 by the XLV Additional Chief

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NC: 2025:KHC:52957 WP No. 32664 of 2025

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HC-KAR

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Metropolitan Magistrate, Bengaluru, is hereby set aside.

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(iii) The petitioner/financial institution is granted a period of two weeks to furnish details of rival claims or multiple orders, if any. In the event such documents are placed on record, the learned Magistrate shall ensure that the order of seniority of the earlier orders is taken into consideration. The request of the complainant, who is entitled to the benefit of the earliest order, shall be prioritized, and the amount shall be remitted from the account of the accused to the account of the complainant accordingly.

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(iv) This exercise shall be completed within six weeks from the date of receipt of the certified copy of this order.

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(v) The learned Magistrate shall decide the application afresh within six weeks from the date of receipt of the requisite details from the petitioner/financial institution, which period includes the two weeks' time granted for submission of the details."

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Considering that the petitioner/Bank was not heard before passing the impugned order, this Court deems it fit

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HC-KAR

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to direct the learned Magistrate to give an opportunity to

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the petitioner and hear him before passing any order. The petition can be disposed of in terms of the order passed in Crl.P.No.1569/2025 (supra). Hence, the following :

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ORDER

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i) The order dated 03.06.2025 passed in Crime

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No.171/2025 by the XLV ACJM, Bengaluru, is hereby set aside. The petitioner /bank is granted a period of three weeks to furnish rival claims or multiple orders, if any.

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ii) In that event, the learned Magistrate shall ensure that the order of seniority of the earlier orders is taken into consideration. The request of the complainant that he is entitled to the benefit of the earliest order, shall be prioritized and the amount shall be remitted from the account of the accused to the account of the complainant, accordingly.

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