Dismissed¶41

M/S. Baba Nanak Financial Services Limited v. the Joint Director

Karnataka HC30 Jun 2026WP/25974/2022

Case brief

AI extract

What is this about?

Baba Nanak Financial Services Limited; Karnataka High Court; M.G.S. Kamal; WP 25974/2022 GM-RES; writ petition dismissed for non-prosecution; PMLA Section 17(1-A) freezing order; F.No. ECIR/BGZO/55/2022 (AD-KS) dated 19.10.2022; Directorate of Enforcement Bengaluru; HDFC Bank account 4392560003794; Rs. 4,28,57,227.35 frozen balance; Articles 226 and 227 Constitution; cost Rs.1,000 Karnataka State Legal Services Committee; non-representation 12.06.2026/17.06.2026/30.06.2026; supplementary charge sheet; W.P.No.25172/2022 identical petition rejected 16.02.2023; Adjudicating Authority PMLA.

What did the court decide?

The writ petition is dismissed for non-prosecution. ¶41

M/S. Baba Nanak Financial Services Limited Vs the Joint… — Money Laundering | Karnataka HC (2026)

What the court decided

AI extract

Outcome

Dismissed

¶41

Issue for consideration

Whether the freezing order under Section 17(1-A) of the Prevention of Money-Laundering Act, 2002 directing R4 (HDFC Bank) to freeze the petitioner-company's account No. 4392560003794 (balance Rs. 4,28,57,227.35) should be quashed as arbitrary, illegal and unjust.

¶25

Ratio / Principle

The writ petition is dismissed for non-prosecution.

¶41

Key takeaways

The dismissal rests on the petitioner's continued non-representation (12.06.2026, 17.06.2026 and 30.06.2026), non-payment of the imposed cost of Rs.1,000/-, and the petitioner's apparent loss of interest in prosecuting the matter.ratio¶39

Detailed headnote1 paragraphs

Karnataka High Court (M.G.S. Kamal J.), Writ Petition No. 25974 of 2022 (GM-RES), order dated 30.06.2026: Petition by M/s. Baba Nanak Financial Services Limited under Articles 226 and 227 of the Constitution seeking quashing of the freezing order under Section 17(1-A) of the Prevention of Money-Laundering Act, 2002 (F.No. ECIR/BGZO/55/2022 (AD-KS) dated 19.10.2022, Annexure-A) issued by the Assistant Director, Directorate of Enforcement, directing HDFC Bank (R4) to freeze the petitioner-company's account No. 4392560003794 with a balance of Rs. 4,28,57,227.35, as arbitrary, illegal and unjust. DISPOSED OF WITHOUT ADJUDICATION: writ petition dismissed for non-prosecution, the petitioner having been unrepresented on 12.06.2026, 17.06.2026 and 30.06.2026, having failed to pay the cost of Rs.1,000/- (payable to the Karnataka State Legal Services Committee) imposed by the Court's order dated 17.06.2026, and appearing to have lost interest in prosecuting the matter; the Court had expressly warned on 17.06.2026 that continued non-representation would result in appropriate orders including dismissal. Counsel for Respondent Nos. 1 and 2 had informed the Court that a supplementary charge sheet was being filed against the petitioner and had referred to the rejection of an identical petition by a Co-ordinate Bench in W.P.No.25172/2022 (order dated 16.02.2023). The validity of the freezing order was not examined.

¶1

¶2

NC: 2026:KHC:32285 WP No. 25974 of 2022

¶3

HC-KAR

¶4

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

¶5

DATED THIS THE 30^TH DAY OF JUNE, 2026

¶6

BEFORE

¶7

THE HON'BLE MR. JUSTICE M.G.S. KAMAL

¶8

WRIT PETITION NO. 25974 OF 2022 (GM-RES)

¶9

BETWEEN:

¶10

M/S. BABA NANAK FINANCIAL SERVICES LIMITED A COMPANY INCORPORATED UNDER THE COMPANIES ACT 1956 AND HAVING ITS REGISTERED OFFICE AT S-26 3^RD FLOOR CHANAKYA PLACE PART-2 UTTAM NAGAR NEW DELHI-110 059 WEST DELHI DL 110059 REPRESENTED BY ITS DIRECTOR AND AUTHORISED REPRESENTATIVE SMT. SMITA KARUNAKAR SHETTY.

¶11

…PETITIONER

¶12

(BY SMT. HARSHITHA G.G.,ADVOCATE)

¶13

Digitally signed by SUMA B N Location: HIGH COURT OF KARNATAKA

¶14

AND:

¶15

THE JOINT DIRECTOR DIRECTORATE OF ENFORCEMENT BENGALURU ZONAL OFFICE 3RD FLOOR, B BLOCK BMTC SHANTHINAGAR, TTMC K H ROAD, SHANTINAGAR BENGALURU-560 027.

¶16

THE ASSISTANT DIRECTOR OFFICE OF THE JOINT DIRECTOR DIRECTORATE OF ENFORCEMENT BENGALURU ZONAL OFFICE

¶17

3^RD FLOOR B BLOCK

¶18

2 - NC: 2026:KHC:32285 WP No. 25974 of 2022

¶19

HC-KAR

¶20

BMTC SHANTINAGAR TTMC K H ROAD, SHANTINAGAR BENGALURU-560 027.

¶21

THE ADJUDICATING AUTHORITY (PMLA) ROOM NO.26 4^TH FLOOR JEEVAN DEEP BUILDING PARLIAMENT STREET NEW DELHI-110 001.

¶22

THE BRANCH HEAD HDFC BANK LIMITED 103/31 26^TH MAIN ROAD 4^TH T BLOCK JAYANAGAR NEAR SSMRV COLLEGE BENGALURU-560 041.

¶23

…RESPONDENTS

¶24

(BY SRI. ANUPARNA BORDOLOI.,ADVOCATE FOR R1 AND R2)

¶25

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER FREEZING U/S 17(1-A) OF THE PREVENTION OF MONEY-LAUNDERING ACT, 2002 BEARING F.NO. ECIR/BGZO/55/2022 (AD-KS) DATED 19.10.2022 (I.E, ANNEXURE-A) ISSUED BY THE R2 IN SO FAR AS IT DIRECTS THE R4 BANK TO FREEZE THE BANK ACCOUNT OF THE PETITIONER- COMPANY IN THE R4/ HDFC BANK BEARING NO. 4392560003794 WITH A BALANCE OF RS. 4,28,57,227.35 PS (RUPEES FOUR CRORES TWENTY EIGHT LAKHS FIFTY SEVEN THOUSAND TWO HUNDRED AND TWENTY SEVEN AND PAISE THIRTY FIVE ONLY.), AS ARBITRARY, ILLEGAL AND UNJUST.

¶26

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

¶27

CORAM: HON'BLE MR. JUSTICE M.G.S. KAMAL

¶28

¶29

NC: 2026:KHC:32285 WP No. 25974 of 2022

¶30

HC-KAR

¶31

ORAL ORDER

¶32

On 17.06.2026 this Court passed the following order:

¶33

" 1. The matter was listed on 12.06.2026, there was no representation on behalf of the petitioner on the said date. Even today there is no representation on behalf of the petitioner.

¶34

2. Ms. Anuparna Bordoloi, learned counsel for the respondent Nos.1 and 2 submits that the supplementary charge sheet is being filed against the petitioner. She also refers to the Order dated 16.02.2023 passed by the Co-ordinate Bench of this Court in W.P.No.25172/2022, wherein the Co-ordinate Bench of this Court under identical fact circumstances of the matter, has rejected the petition. Hence seeks for dismissal of the petition.

¶35

3. Since there is no representative on behalf of the petitioner, in the interests of justice for the say of the petitioner, list this matter on 30.06.2026 subject to payment of cost of Rs.1,000/- payable to the Karnataka State Legal Services Committee.

¶36

4. It is made clear that if there is no representation on the next date of hearing, appropriate orders including dismissal would be passed.

¶37

5. Registry to delete the name of Sri. Rajaram Sooryambail, learned counsel and Sri. Madhukar Deshpande, learned counsel in the cause list. ''

¶38