Proprietorship's current account was frozen by banks after cyber police flagged Rs. 5 lakh as crime proceeds though no FIR named the petitioner. Court directed bank to place a Rs. 5 lakh lien, unfreeze the account, and allow operation pending further cyber police instructions.
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IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.967 of 2024
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M/s Shri Ram Galla Bhandar, a Proprietorship firm having its Principal Place of Business at Sursand, Sitamarhi, Bihar Pin Code-883324 through its Proprietor, Mr. Vijay Sah, aged about 50 Years, Male, Son of Bhuta Sah, Resident of Vishnupur, Via-Parihar, Police Station and Post- Parihar, Sitamarhi, Bihar, 883324.
... ... Petitioner/s
... ... Respondent/s
====================================================== Appearance : For the Petitioner/s : Mr. Apurv Harsh, Advocate. For the Respondent/s : Mr. Additional Solicitor General. For the Bank : Mr. Mritunjay Kumar, Advocate. Mr. Ram Ganesh, Advocate. Ms. Shilpi Singh, Advocate.
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CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY ORAL JUDGMENT
Date : 23-08-2024
Heard learned counsel for the parties.
the following reliefs:-
“(i) For issuance of appropriate Writ/s Direction/s, Order/s in the nature of mandamus for commanding the respondent authorities to unfreeze the account of the petitioner immediately. (ii) For issuance of appropriate Writ/s,
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Direction/s, Order/s in the nature of mandamus for commanding the respondent authorities to pay adequate monetary compensation against loss of profit during suspension of said current account of the petitioner firm.”
a current account in Punjab National Bank at BranchSursand Asli, District-Sitamarhi having account No. 7214002100001646 in the name of his proprietorship firm M/s Shree Ram Gala Bhandar. That the account of the petitioner was frozen on 28.08.2023 without any prior intimation or show cause notice. That the petitioner on coming to know about the freezing of the account, has approached the Bank, on enquiry it was found that the current account of the petitioner was suspected by the Cyber Police, Delhi as well as the Cyber Police Station, Samastipur of involvement in some cyber case. That on the instructions of the police the account of the petitioner was frozen. Learned counsel has stated that the police informed them that on 15.03.2023 and 06.04.2023 an amount of Rs. 5 Lakhs was marked as suspected of crime and therefore freezing of the account was done. Learned counsel has
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stated that because of the freezing of the account, the petitioner is being put to great hardship and he is unable to conduct his business in smooth manner. Learned counsel has, therefore, prayed this Hon’ble Court to direct official respondents to unfreeze the account of the petitioner and permit him to operate the same.
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filed by the Respondent No. 2, it clearly transpires that an amount of Rs. 5 Lakh has been transferred to the account of the petitioner from the South Indian Bank account in which the amount of Rs. 65,000/- has been transferred from one of the victims/complainant. Even for the sake of argument, if any amount is to be recovered from the petitioner, it cannot be more than Rs. 5 Lakh, which was transferred to the account of the petitioner from the account in South Indian Bank. As on date, no F.I.R. has been registered against the petitioner arraying him as an accused in the cyber crime registered at the most the petitioner can only be accused of receiving the amounts. To what extent the involvement of the petitioner in the said cyber crime is there can only be asserted after the investigation is completed and chargesheet is filed, for which the freezing of the account of the petitioner is not warranted.
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and the petitioner be allowed to operate the bank account by unfreezing the same. The present writ petition is disposed of directing the bank authorities to put a lien on Rs. 5 Lakh in the account of the petitioner and unfreez the account of the petitioner and permit the petitioner to operate the bank account. The petitioner shall cooperate with the authorities whenever called for. The said lien shall be in operation till the bank authorities receive any further instructions from the cyber police.
(A. Abhishek Reddy, J)
shakir/-
| AFR/NAFR | NAFR |
|---|---|
| CAV DATE | NA |
| Uploading Date | 13.09.2024 |
| Transmission Date | NA |
2 issues framed by the court
Whether a bank account frozen on cyber police suspicion should be unfrozen when no FIR accuses the petitioner?
Whether lien on suspected amount suffices instead of full account freeze?
M/s Shri Ram Galla Bhandar (through Proprietor Vijay Sah)
The Union of India through the Secretary, Ministry of Home Affairs
The State of Bihar through the Principal Secretary, Department of Home Affairs
The Branch Manager, Punjab National Bank, Branch-Sursand Asli
A. Abhishek Reddy
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
