Manoj Jain, Vs The Branch Manager — Company and Corporate | Telangana HC (2025)

Manoj Jain, Vs The Branch Manager — Company and Corporate | Telangana HC (2025)

What the court decided

AI extract

Outcome

Writ petition disposed of: Petitioner to first approach the concerned Bank and file an appropriate application; respondents to consider the representation dated 06.08.2023 and provide a reasoned response within a reasonable time in accordance with the Banking Regulation Act, RBI KYC norms and other applicable laws; liberty to approach the Court again if the Bank fails to act promptly; no order as to costs.

Issue for consideration

Whether a writ of mandamus should issue directing Respondents 1 to 3 to immediately defreeze the Petitioner's current account No. 20100035156977 and consider its representation dated 06.08.2023, ensuring that any account restrictions comply with the Banking Regulation Act, RBI KYC guidelines and applicable laws.

Court's answer

The Petitioner's bank account was frozen without prior notice or proper explanation, which raises concerns about compliance with principles of natural justice and RBI guidelines.

Ratio / Principle

Since the issue primarily involves the Bank's internal procedures, the Petitioner shall first approach the Bank for redressal.

Key takeaways

The Writ petition is disposed of directing the Petitioner to first approach the concerned Bank and file an appropriate application; upon receiving such application, the respondents are directed to consider the Petitioner's representation dated 06.08.2023 and provide a reasoned response within a reasonable time, in accordance with the Banking Regulation Act, RBI KYC norms and other applicable laws.ratio¶32
The Petitioner is at liberty to approach the Court again if the Bank fails to act promptly; there shall be no order as to costs.ratio¶33

Detailed headnote1 paragraphs

High Court for the State of Telangana (Nagesh Bheemapaka, J.) disposed of a writ petition under Article 226 filed by Rollhigh Metal India Private Limited seeking a mandamus to defreeze its current account No. 20100035156977 with Bandhan Bank, Lingampally Branch, Hyderabad, which was frozen on 06.08.2023 without prior notice or valid reason, and to consider its representation dated 06.08.2023 in compliance with the Banking Regulation Act, 1949 and RBI KYC norms. The Court observed that the freezing of the account without prior notice or proper explanation raised concerns about compliance with principles of natural justice and RBI guidelines; however, since the issue primarily involved the Bank's internal procedures, the Petitioner was directed to first approach the Bank and file an appropriate application. Upon receipt of such application, the respondents were directed to consider the representation dated 06.08.2023 and provide a reasoned response within a reasonable time in accordance with the Banking Regulation Act, RBI KYC norms and other applicable laws. The Petitioner was left at liberty to approach the Court again if the Bank failed to act promptly. No order as to costs; pending miscellaneous applications closed.

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rN rHE^{HIGH couRr F8$rtff^BITEoF TELANGANA} (sPeciai Original^{Jurisdiction)}

THURSDAY,THE^{NINTH DAY OF OCTOBER} TWb THOUSAND^{AND TWENTY FIVE}

PRESENT

THE HONOURABLE^{SRI JUSTICE NAGESH BHEEMAPAKA} WRIT^{PETITIONNO : 26388OF2025}

Between:

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AND

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":i'llr; Petition^{under Article 226 ot lhe Constitutionof lndiapraying that in the} circumstances^{stated in the affidavitfiled therewith' the High Court may be} pleased to^{issue a writ of mandamusor any other appropriatewrit' order' or} direction^{directingthe Respondents, namery the Branch Manager' Bandhan} Bank,^{LingampallyBranch'Hyderabad (RespondentNo 1)' BandhanBank} Limited^{(Respondent No 2)' and the Reserve Bank of lndia (RespondentNo No'} 3),toforthwithdefreezeandremovethe'NoDebit'restrictiononthePetitioner's current^{account bearing number20100035156977 'and further to considerand} dispose^{of the Petitioner's representationdated 06 August2023 withina} stipulated^{time frame' with a direction to providedetailed reasons for any pr/or or} future restrictions,^{ensuring compliance with the Banking Regulation Act' 1949'}

RBI Master Dtrection on KyC, and other applicable laws, pending the fipat disposal of the Writ petition, in the interest of justice lA NO: 1 OF 2025

Petition under section 151 cpc praying that in the circumstances stated in the affidavit fired in support of the petition, the'High court may be preased to issue an appropriate order or direction directing the Respondents, namery the Branch Manager, Bandhan Bank, Lingampally Branch, HycJerabad (Respondent No^'1 )' Bandhan Bank Limited (Respondent No. 2), and the Reserve Bank of lndia (Respondent No. 3), to consider and dispose of the petitioner,s representation dated 06 August 2023 within a stipurated time frame, providing detaired reasons for any prror or future restrictions, ensu.ng compriance with the Banking Reguration Act, 194g, RBr Master Direction on Kyc, and other appricabre raws, pending the finar disposar of the writ petition, in the interest of JUStice

Counsel for the petitioner: SRl. MD FASIUDDIN Counsel for the Respondent No. 4: SRI ANGOTHU NEHRU , SC Counsel for the Respondent Nos. 1to3: -_

The Court made the following: ORDER

v

THE HON'BLE^{SRI JUSTICENAGESH BHEEMAPAKA} WRIT PETITIO^{N No.26388of 2O25}

ORDER:

ThisWritPetitionislrledseekingawritofmandamus directing^{Respondents 1 to 3to immediately defreeze the} Petitioner,sCurrentaccount(No.20100035|56977|and consider^{the representation dated06'08'2023 within a fixed} timeframe,^{and ensure that any account restrictions comply} with the^{Banking RegulationAct' RBI KYC guidelines' and} applicable^{laws, with properreasonsprovided'}

Heard^{Mr'Md'Fasiud'din'learned counselforthe} petitioner^{and Sri Angothu Nehru' learned Standing Counsel} for respondent^{No'4' Perusedthe record'}

The^{Petitioner,ROLLHIGH METALINDIAPRIVATE} LIMITED,^{is a duly incorporated privatelimited company under} the Compalies^{Act, 2013,engaged in the trading of metals' It} holdsvalidGsT,PAN,andTANregistrations'a11dmaintainsan active current^{account (No. 20100035156977\with Bandha:l} Bank, Lingampally^{Branch, Hyderabad (Respondents No' 1 &} 2, regulated^{by RespondentNo' 3' RBI)' On 6th August2OJ3'}

)

NBK, J lr.P.No.26388 of 202i

the Petitioner,s bank account was frozen by the Bank without any prior notice or va,lid reason. .ihis action goes against the basic principles of the Balking Regulation Act, I949,and RBI rules, which require the Barrk to give written reminders arrd a chance to respond before freezing an account. Even after sending a legal notice and several follow_ups, the Bank has not given any explanation or removed the freeze. As a result, the Petitioner's business has been badly affected, ald they are unabie to pay taxes, employees, or supplicrs, and their work has come to a standstill. He further reiied upon the judgments passed by several High Courts, where arbitrary or disproportionate freezing was held unconstitutional. The Petitioner seeks judicial intervention under Article 226 to defreeze the account and uphold its fundamental and statutory rights.

Considering the submissions rnade and a perusal of the records, it is observed that the petitioner,s barrk account u,as frozen without prior notice or proper explanation, u.hich raises concerns about compliance with principles of natt_rral justice ard RBI guidelines. However, since the issue primarily involves

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NBK,^J tl/.P.No.26388^{of 2025}

the Bank's^{internalprocedures'the Petitionershall approach:} the Bank^{for redressal}

Accordingly,^{the Writ petition is disposed of directing the} Petitioner^{to first approachthe concerned Bank and file an} appropriate^{applicationbeforethe respondents' Upon receiving} such an^{application, the respondents are isdirected to} consider the^{Petitioner's representation dated O6'08'2023and} provid.e a^{reasoned responsewithin a reasonable time' in} accordance^{with the BankingRegulationAct' RBI KYC norms'} and other^{applicable laws' It is needlessto say that the} Petitioner is^{at liberty to approachthe Court again if the Bank}

fails to^{act promptly' There shallbe no orderas to costs'}

Pending^{miscellaneousapplications, if any' shall stand}

closed.

SD/-B. REKHA^RANI ASSISTANT^REGISTRAR

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//TRUE COPY'

SECTION^OFFICER

To,

The Branch^{Manager, Bandhan Bank, Lingampally Branch. Plot No. 66 and} 67, survey^{No. 5, API lct;ft#;t;;";i'"N"'?l(ru'Kukatpallv'Hvderabad} Resistered^{orrice. AdventzI [email protected] 2th-1 4th}

, ifl Floor. BN-5, Sector-V, :.sJfr ^Tl'J3i[i,.n"0,^{s;iLi;'cliv'r91Qta- 7000e1 west Bensal} 1 rhe Reoional Director,^{n?!E'iie;rik;iiili;'6-1-s6' secretariatRoad'} " Saitaoit, Hyderabad - 500004' Telangana. Finance' ogqalTgllgf^Financial

The Secretary,^Union "ii"di;"it/;ilry-of Services,^{Governmentoi f nOii' f'tor.t''elock'New Delhi - 1 10001}

s il;'cdi"--srii.^{MD FASluDDlN Advocate[oPUCl} 6. o;; cc^{to snt. Advocate [oPUC]}

Two CD^CoPies

B IVl BS

CC TODAY

HIGH COURT

DATED:09110t2025

ORDER

WP.No.26388 of 2OZs

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DISPOSING OF THE WRIT PETITION WITHOUT COSTS

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