Axis Bank Ltd. v. the State of Karnataka

Karnataka HC15 Apr 2026CRL.P/15947/2025

Case brief

AI extract

What is this about?

Axis Bank; defreezing of bank account; opportunity of hearing to Bank before S.451/457 Cr.P.C. (S.497/503 BNSS) defreeze orders; S.482 Cr.P.C.; S.528 BNSS; remand to Magistrate for fresh consideration; cybercrime (CEN) Crime No.26/2025; account No.924020022010684; interim restraint on release of funds; eight-week disposal timeline; Karnataka High Court; M. Nagaprasanna, J.; NC 2026:KHC:20916.

What did the court decide?

Criminal Petition allowed; order dated 24.07.2025 of the 45th ACJM, Bengaluru in Crime No.26/2025 set aside; matter remanded to that Court for fresh consideration of the Sections 451/457 Cr.P.C. application after hearing the petitioner-Bank; Bank restrained till disposal from releasing money from the subject account; trial Court directed to dispose of the application within eight weeks. ¶¶74

Axis Bank Ltd. Vs the State of Karnataka — Company and Corporate | Karnataka HC (2026)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the order dated 24.07.2025 of the 45th ACJM, Bengaluru in Cr.No.26/2025, directing the petitioner-Bank to defreeze account No.924020022010684 and transfer the amount to respondent No.2, could stand when the Axis Bank was not heard in the matter. +1 more

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Court's answer

The Axis Bank was not heard before the impugned order; to give it one opportunity, the petition is entertained and sent back to the concerned Court.

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Ratio / Principle

In the light of the orders of the co-ordinate Benches quoted in the judgment, which hold identically in other cases, the Court deemed it appropriate to dispose of this petition on the same lines.

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Key takeaways

Criminal Petition is allowed and the order dated 24.07.2025 passed by the 45th Additional Chief Judicial Magistrate, Bengaluru in Crime No.26 of 2025 is set aside.ratio¶¶78
Matter is remanded to the 45th Additional Chief Judicial Magistrate, Bengaluru to reconsider the application filed under Sections 451 and 457 of Cr.P.C. afresh, after affording opportunity of hearing to the petitioner.ratio¶¶79
Till disposal of the application, the petitioner-Bank is restrained from releasing the money in favour of any person from the subject account.

Detailed headnote1 paragraphs

Criminal Petition under S.482 Cr.P.C. (S.528 BNSS) by Axis Bank Ltd. against the order dated 24.07.2025 of the 45th Additional Chief Judicial Magistrate, Bengaluru in Crime No.26/2025, directing the Bank to defreeze savings/current account No.924020022010684 and transfer the amount to respondent No.2. Held: the Axis Bank had not been heard before the impugned order; following the consistent line of co-ordinate Bench orders (Crl.P.No.1787/2023 dt.14.12.2023 and Crl.P.No.13487/2023 c.w. connected petitions dt.12.02.2024), the petition was allowed and the impugned order set aside; the matter was remanded for fresh consideration of the application under Ss.451/457 Cr.P.C. (Ss.497/503 BNSS) after affording the Bank an opportunity of hearing. The Bank was restrained from releasing money from the subject account till disposal; the trial Court was directed to decide the application within eight weeks; the disposal was confined to Axis Bank accounts alone; and if the Bank failed to appear on the next date, the trial Court was free to pass appropriate orders qua the Bank.

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NC: 2026:KHC:20916 CRL.P No. 15947 of 2025

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HC-KAR

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 15^TH DAY OF APRIL, 2026

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BEFORE

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THE HON'BLE MR. JUSTICE M.NAGAPRASANNA

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CRIMINAL PETITION NO. 15947 OF 2025

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BETWEEN:

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AXIS BANK LTD A BANKING COMPANY CARRYING ON THE BANKING BUSINESS

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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 SANJEEVINI J KARISHETTY Location: High Court of Karnataka

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AND HAVING ONE OF ITS BRANCH OFFICE AT NO.47, THANGAL BAZAR, IMPHAL 795 001. MANIPUR. REPRESENTED BY ITS BRANCH HEAD MR. GOUTAM WANGKHEM AGED ABOUT 51 YEARS. S/O MAGHA WANGKHEM URIPOK SINAMLAKAL OPP LANGAD VIEW CIRCLE IMPHAL WEST, MANIPUR-795001

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…PETITIONER

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(BY SRI: UNNIKRISHNAN M.,ADVOCATE)

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NC: 2026:KHC:20916 CRL.P No. 15947 of 2025

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HC-KAR

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AND:

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THE STATE OF KARNATAKA BY NORTH EAST CEN CRIME POLICE STATION NORTH EAST DIVISION, BANGALORE DISTRICT. PRESENTED BY SPP HON'BLE HIGH COURT OF KARNATAKA. BANGALORE 01.

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MRS ARUNA N W/O. SURENDRA KUMAR AGED ABOUT 43 YEARS RESIDING AT NO.35 ADITYA ENCLAVE LAYOUT VIJAYAPURA MAIN ROAD DEVANAHALLI BENGALURU CITY 562 110. KARNATAKA

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…RESPONDENTS

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(BY SRI:CHANNAPPA EARAPPA, HCGP FOR R1; SRI: P CHANDRASHEKAR, ADVOCATE FOR R2)

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THIS CRL.P IS FILED UNDER SECTION 482 CR.P.C (UNDER SECTION 528 BNSS) PRAYING TO SET ASIDE THE ORDER DATED 24.07.2025 PASSED BY THE HONBLE 45^th ACJM, BANGALORE IN CR.NO.26/2025 i.e., ANNEXURE-C IN TERMS OF WHICH THE PETITIONER IS DIRECTED TO DEFREEZE THE SAVINGS/CURRENT ACCOUNT BEARING NO.924020022010684 MAINTAINED IN THE PETITIONERS BANK AND TRANSFER THE SAME TO THE ACCOUNT OF THE RESPONDENT NO.2.

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THIS CRL.P IS COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MR. JUSTICE M.NAGAPRASANNA

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3 - NC: 2026:KHC:20916 CRL.P No. 15947 of 2025

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HC-KAR

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ORAL ORDER

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Heard Sri M Unnikrishnan, learned counsel appearing for the petitioner, Sri Channappa Erappa, learned High Court Government Pleader appearing for respondent No.1 and Sri P Chandrashekar, learned counsel appearing for respondent No.2.

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Learned counsel appearing for the petitioner submits that in all identical cases, the co-ordinate Benches have allowed the petitions and remitted the matter back to the office of the learned Magistrate to permit the petitioners to file their objections with liberty to appear and then consider 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

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NC: 2026:KHC:20916 CRL.P No. 15947 of 2025

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HC-KAR

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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 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

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5 - NC: 2026:KHC:20916 CRL.P No. 15947 of 2025

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HC-KAR

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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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In Crl.P.No.13487/2023 c/w. Crl.P.Nos. 10201/2023,

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12091/2023, 13483/2023, 13489/2023, 13611/2023,

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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 de-freezing 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. 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.	Crl. P. No.	Impugned order	Addl. Chief	CR. No.

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NC: 2026:KHC:20916 CRL.P No. 15947 of 2025

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HC-KAR

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No.		dated	Metropolitan Magistrate
1	13487/2023	17/02/2023	I A.C.M.M.	1213/2022
2	10201/2023	07/07/2023	C.J.M., BANGALORE RURAL DIST.	Crl. Misc. 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 co-ordinate

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Benches as quoted hereinabove, as also same was being held in other cases, I deem it appropriate to dispose of this petition.

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NC: 2026:KHC:20916 CRL.P No. 15947 of 2025

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HC-KAR

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It is made clear that, the petition disposed concern

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only accounts held by the Axis Bank and no other Bank.

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Learned counsel appearing for the respondents - complainants would submit that the Axis Bank did not appear before the Court despite 1, 2 or 3 notices and therefore, the Court has passed the order.

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Nonetheless, the fact remains that the Axis Bank has not been heard in the matter. Therefore, to give one opportunity to Axis Bank, the petition is entertained and sent back to the concerned Court to hear the application filed under Sections 497 and 503 of the BNSS or 451 and 457 of the Cr.P.C. as the case would be. In the event, the petitioner - Axis Bank would not avail such opportunity of appearing before the Court on the next date when the matter is slated and is notified, it is open to the Court to pass appropriate orders in accordance with law, qua the Axis Bank/petitioner.

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For the aforesaid reasons, the following:

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ORDER

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a. Criminal Petition is allowed .

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NC: 2026:KHC:20916 CRL.P No. 15947 of 2025

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HC-KAR

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b. The order dated 24.07.2025 passed by the 45^th Additional Chief Judicial Magistrate, Bengaluru in Crime No.26 of 2025 is hereby set aside.

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c. Matter is remanded to 45^th Additional Chief Judicial Magistrate, Bengaluru 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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d. 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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e. 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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BGN List No.: 2 Sl No.: 108

Axis Bank Ltd. v. the State of Karnataka

Case brief

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Axis Bank Ltd. v. the State of Karnataka

Case brief

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