Zuber Abk Fashion Private Limited Vs State of Rajasthan — Rajasthan HC (2025) — LawSathi Research

Zuber Abk Fashion Private Limited Vs State of Rajasthan — Rajasthan HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Direction to respondent-Bank (Esaf Small Finance Bank) to de-freeze current account No. 20250000002421 and allow the petitioner to operate it and transact; respondents directed to freeze only the disputed amount alleged to be involved in fraudulent transaction(s); petitioner to co-operate with and appear before bank/investigating authorities, to keep the account open until permitted otherwise, and to bear liability (with inquiry per law) if involvement in illegal transactions is found; Bank free to return tainted credits to the originating account. Stay application and pending applications also disposed of.

Issue for consideration

Whether respondent no. 4 (ESAF Small Finance Bank) should be directed to unfreeze the petitioner's current bank account no. 20250000002421, given no material on record showing the petitioner or his account involved in cyber crime, and the account having been frozen solely because certain amounts were deposited into it. +1 more

Court's answer

As no material was placed on record showing the petitioner or his account involved in any cyber crime, and the account was frozen only because certain amounts were deposited into it, the Court disposed of the writ petition by directing the respondent-Bank to de-freeze account No.20250000002421 with ESAF Small Finance Bank and to allow the petitioner to operate the account and make transactions.

Ratio / Principle

The respondents are directed to freeze only the disputed amount, i.e. the amount alleged to be involved in the fraudulent transaction(s), not the petitioner's entire account or balance.

Key takeaways

The petitioner must co-operate with the bank authorities and the investigating agency and appear before them as and when required.ratio¶30
The petitioner shall not close or discontinue the said account unless and until the investigating agency and banking authorities permit him to do so.ratio¶31
If, after investigation, the petitioner's involvement in any illegal transactions is found, he shall be liable to pay the amount involved in those illegal transactions and will face inquiry/investigation in accordance with law.

Detailed headnote1 paragraphs

Rajasthan HC (Jaipur Bench), single judge (Anoop Kumar Dhand, J.), order dated 20/09/2025 — S.B. Civil Writ Petition No. 9670/2025, Zuber Abk Fashion Private Limited v. State of Rajasthan & Ors.: Finding no material on record showing the petitioner or his account involved in any cyber crime, and observing the account had been frozen solely because certain amounts stood deposited in it, the Court disposed of the petition by directing respondent no. 4 (ESAF Small Finance Bank) to de-freeze current account No. 20250000002421 and allow operation and transactions, while respondents are to freeze only the disputed amount alleged to be involved in the fraudulent transaction(s) (Paras 5, 29). Conditions attached: petitioner to co-operate with and appear before bank/investigating authorities as required (Para 30); not to close or discontinue the account till permitted by investigating/banking authorities (Para 31); if post-investigation involvement in illegal transactions is found, he is liable to pay the amounts involved and face inquiry/investigation per law (Para 32); the Bank may transfer the tainted credit back to the original remitting account (Paras 9, 36). Stay application and pending applications stand disposed of (Para 37). No statute or precedent is cited.

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR

S.B. Civil Writ Petition No. 9670/2025

Zuber Abk Fashion Private Limited, Registered Office At - Near Shiv Mandir, Old Delhi Road, Shahpura, Jaipur Through Its Authorized Representative Mohammad Jishan S/o Babu Khan, Age About 25 Year, R/o House No. 164, Ward No. 8, Handipura, Amer, District Jaipur.

----Petitioner

Versus

State Of Rajasthan, Through Director General Of Police, Police Directorate, Jaipur, Rajasthan.

The Commissioner Of Police, Home Department, Jaipur, Rajasthan.

Regional Office, Reserve Bank Of India, Jaipur Region Through Regional Director, Rambagh Circle, Tonk Road, Jaipur.

Esaf Small Finance Bank, Through Its Branch Manager, Branch Office- Delight Tower- Commercial Office, Govind Marg, B-23, Gurunanakpura, Rajapark, Jaipur.

S.H.O. Police Station Thorangal, District Ballari, Karnataka.

S.H.O., Police Station Sahakar Nagar, District Pune City, Maharashtra.

----Respondents

For Petitioner(s) : Mr. Mohammed Anees For Respondent(s) : Mr. Adeet Srivastava Mr. Dinesh Kumar Saini Mr. Sanjay Srivastava

JUSTICE ANOOP KUMAR DHAND

Order

20/09/2025

The instant writ petition has been filed by the petitioner with the following prayer:-

[CW-9670/2025]

(2 of 4)

“i) by appropriate order, writ or direction, respondent no. 4 ESAF Small Finance Bank be directed to unfreezing the current bank account no. 20250000002421 of petitioner firm;

ii) by appropriate order, writ or direction, direct the respondents to allow the petitioner firm to operate its current bank account no.20250000002421 in respondent no. 4 ESAF Small Finance Bank and to allow transactions of running balance of Rs. 15,32,360/-;

iii) In alternate, respondent no. 4 bank keep lien of disputed amount Rs. 6,05,000/-to the extent it relates to the offence subject to the outcome of investigation. Keeping such amount under lien, respondent no. 4 bank shall allow the petitioner to operate his bank account & transactions of remaining undisputed amount Rs. 9,27,360/- in accordance with law,

iv) Any other order, writ or direction which this Hon'ble Court deemed just and proper, may also be passed in favour of the petitioner.

Learned counsel for the petitioner submits that the petitioner is seeking direction against the respondent-Bank for defreezing his bank Account No.20250000002421 with the ESAF Small Finance Bank. Counsel submits that the petitioner has no concern whatsoever with any cyber crime committed by anyone, even then his account has been freezed by the respondent-Bank. Counsel submits that the petitioner is ready and willing to co-operate with the investigation and the banking authorities as well, as and when required.

Counsels for the respondents oppose the prayer and submits that certain complaints were received about the cyber crime committed and amount deposited in the bank account of the petitioner and that is why, a decision has been taken for freezing the bank account of the petitioner, hence, under these circumstances, interference of this Court is not warranted.

[CW-9670/2025]

(3 of 4)

Heard and considered the submissions made at bar and perused the material available on record.

Looking to the fact that no material has been placed on record to show that the petitioner or his account is involved in any sort of cyber crime, but looking to the fact that certain amount was deposited in the account of the petitioner and only on this count alone, his bank account has been freezed, the instant writ petition stands disposed of by issuing direction to the respondent-Bank to de-freeze the bank account of the petitioner bearing No.20250000002421 with the ESAF Small Finance Bank and the petitioner shall be allowed to operate the aforesaid account and make transactions. However, the respondents are directed to freeze the disputed amount only, which is alleged to be involved in the fraudulent transaction(s).

It is made clear that the petitioner will co-operate with the bank authorities and investigating agency and will appear before them as and when required.

This Court also observes that the petitioner shall not close or discontinue the aforesaid account till the investigating agency and banking authorities permit him to do so.

It is further ordered that after investigation, if the involvement of the petitioner is found in any illegal transactions, he shall be liable to pay the amount involved in the aforesaid illegal transactions and will face inquiry/investigation in accordance with law.

It is further ordered that the respondent-Bank shall be at liberty to transfer the amount involved in the illegal

(4 of 4)

[CW-9670/2025]

transaction to the original account from which it was credited to the petitioner's account.

The stay application and all pending application(s), if any, also stand disposed of.

(ANOOP KUMAR DHAND),J

KuD/46