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Finzer Muhammed v. the Union of India

Kerala HC12 Jul 2024WP(C)/18464/2024

Case brief

AI extract

What is this about?

The High Court of Kerala disposed of a writ petition challenging the freezing of a bank account due to suspicious transactions. Relying on a prior decision, the Court issued standardized directions to banks and police authorities regarding the duration, extent, and periodic review of such account freezes.

What did the court decide?

Issued directions to the respondent bank and police authorities to regularize the freeze on the petitioner's deposit account by specifying amounts, setting time limits for police feedback, and allowin

Finzer Muhammed Vs the Union of India — Banking and Recovery | Kerala HC (2024)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR.JUSTICE V.G.ARUN

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FRIDAY, THE 12^TH DAY OF JULY 2024 / 21ST ASHADHA, 1946

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WP(C) NO. 18464 OF 2024

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PETITIONER:

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FINZER MUHAMMED AGED 45 YEARS S/O.MUHAMMED P.E, PARAVANKANDI HOUSE, FEROKE P.O, KOZHIKODE, PIN - 673631 BY ADV ANJANA KANNATH

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RESPONDENTS:

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1 THE UNION OF INDIA REPRESENTED BY ITS SECRETARY, MINISTRY OF HOME AFFAIRS, NEW DELHI, PIN - 110001

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2 THE RESERVE BANK OF INDIA REPRESENTED BY ITS GOVERNOR, HEAD OFFICE, MUMBAI, MAHARASHTRA -, PIN - 400029

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3 NATIONAL CYBER CRIME REPORTING PORTAL REPRESENTED BY ITS DIRECTOR, NATIONAL HIGHWAY8,MAHIPALPUR,NEW DELHI, PIN - 110037

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4 THE STATE POLICE CHIEF POLICE HEAD QUARTERS, VAZHUTHACAUD, THIRUVANANTHAPURAM -, PIN - 695014

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5 BRANCH MANAGER FEDERAL BANK LTD., RAMANATTUKARA BRANCH, GROUND FLOOR, SHOLA COMPLEX, UNIVERSITY ROAD, RAMANATTUKARA, KOZHIKODE -, PIN - 673633

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6 THE STATION HOUSE OFFICER VALSAD CITY POLICE STATION, JALARAM ROAD, IRRIGATION COLONY, KAPADIA CHAL, VALSAD, GUJARAT -, PIN - 396001

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7 ADDL.R7: STATION HOUSE OFFICER, KOTWALI POLICE STATION, RAMPUR, UTTAR PRADESH - 244 901.

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8 ADDL.R8: STATION HOUSE OFFICER, STATE CYBER CRIME POLICE STATION (HP CYBER CELL), SHIMLA, HIMACHAL PRADESH - 171 002.

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9 ADDL.R9: STATION HOUSE OFFICER, CYBER CRIME POLICE STATION, EAST ZONE, CHENNAI, TAMIL NADU600 031.

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10 ADDL.R10: STATION HOUSE OFFICER, CYBER CRIME POLICE STATION, SAMPANGIRAM NAGAR, BENGALURU, KARNATAKA-560 001 (ADDL.R7 TO R10 ARE IMPLEADED VIDE ORDER DATED 12.06.2024 IN IA NO.1/2024 IN WP(C))

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WP(C)No.18464 of 2024

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BY ADVS. ADVOCATE GENERAL OFFICE KERALA SHRI.P.NARAYANAN, SPL. G.P. TO DGP AND ADDL. P.P. () SHRI.SAJJU.S., SENIOR G.P.()

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OTHER PRESENT:

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SRI. T.C. KRISHNA, SC, DSGI IN CHARGE SRI. SUNILKUMAR KURIAKOSE, SR.GP, & MOHAN JACOB GEORGE SC FOR FEDERAL BANK.

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23.05.2024, THE COURT ON 12.07.2024 DELIVERED THE FOLLOWING:

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WP(C)No.18464 of 2024

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JUDGMENT

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Dated this the 12^th day of July, 2024

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The petitioner is the holder of an account with

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the Ramanattukara branch of the Federal Bank. All on a sudden, the petitioner started facing difficulties in operating his account. He, therefore, approached the 5^th respondent for ascertaining the reason. Thereupon, the petitioner was informed that his account had been frozen based on requisitions received from the National Cyber Crime Reporting Portal as there were certain suspicious transactions in the account.

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In spite of the petitioner's efforts, he was not able to obtain specific details regarding the alleged transactions and the complete hold over his account is causing immense hardship. Hence, this writ petition seeking a writ of Mandamus directing the

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WP(C)No.18464 of 2024

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bank to lift the debit freeze on the petitioner's account.

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When the writ petition was taken up for consideration, it was submitted that a batch similar matters were disposed of as per the decision reported in Dr.Sajeer vs. Reserve Bank of India [2023 KHC online 661].

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I heard the learned counsel for the petitioner, the learned Government Pleader and the learned Standing Counsel for the Federal Bank.

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The respondents, at whose instance the requisitions were sent, did not appear despite service of notice through e-mail.

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As far as the case at hand is concerned, I find the directions in Dr.Sajeer (supra) to be sufficient for safeguarding the petitioner's interest. Hence the writ petition is disposed of with the same directions extracted hereunder for easy

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understanding.

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WP(C)No.18464 of 2024

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(i) In cases where the disputed amount is not specified, the respondent Bank is directed to immediately issue a request to the Investigation Authority/Police Authority and seek the amount which is required to be kept in freeze or held in lien in the account of the petitioner. This shall be done by the Bank within a period of one month from the date of receipt of a copy of this judgment.

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(ii) In cases where the disputed amount has been communicated by the concerned Police Officers, the respondent Banks are directed to confine the order of freeze against the accounts of the respective petitioners, only to the extent of the amounts mentioned in the order/requisition issued to them by the Police Authorities. This shall be done forthwith, so as to enable the petitioners to deal with their accounts, and transact therein, beyond that limit.

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(iii) The respondent – Police Authorities concerned are hereby directed to inform the respective Banks as to whether freezing of accounts of the petitioner in this Writ Petition should be continued, and if so, for what further time,

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within a period of eight months from the date of receipt of a copy of this judgment, and on receipt of such information from the Police Authorities, the Bank shall take necessary action either continuing the freeze for such period as mentioned therein; or withdrawing it, as the case may be.

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(iv) If, however, no information or intimation is received by the Banks in terms of direction No. (iii) above, the petitioner will be at liberty to approach this Court again for necessary relief.

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(v) If no information is received from the Police Authority/Investigating officer within a period of two months from the date on which the afore requisition was made by the respondent Bank as per direction (i) above, the Bank shall allow the petitioner/account holder to transact fully in his account, notwithstanding the debit freeze requisition, subject to any further information to be received from the Police Authority/Investigating Officer in future.

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(vi) As an alternative, if the response from the Police Authority/Investigating Officer is that the entire account be frozen for any reason that is mentioned therein, then the Bank will

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inform the petitioner/account holder accordingly and continue the freeze in such a manner for a further period of eight months thereafter.

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(vii) If, after a period of eight months, the requisition made by the Police Authorities - either to a particular sum or the full amount in the account of the account holder - is not withdrawn, then the petitioner/account holder will be at liberty to approach this Court again for necessary relief.

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The writ petition is ordered accordingly.

sd/-

V.G.ARUN

JUDGE

NB/12-7

APPENDIX OF WP(C) 18464/2024 PETITIONER EXHIBITS EXHIBIT P1 TRUE COPY OF THE COMMUNICATION SENT BY THE 5TH RESPONDENT TO THE PETITIONER DATED 5.5.2023 EXHIBIT P2 TRUE COPY OF THE INTERIM ORDER PASSED BY THIS HONOURABLE COURT IN WP (C) NO.18199/2023 DATED 05.06.2023

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TRUE COPY

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P.A. TO JUDGE

Finzer Muhammed v. the Union of India

Case brief

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Finzer Muhammed v. the Union of India

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