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High Court of Karnataka · body

2025 DAILYLAW 36902 (KAR)

AXIS BANK LTD v. THE STATE OF KARNATAKA BY

CRL.P/441/2025 · 2025-04-17

K Natarajan

body2025

Judgment text

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- 1 - NC: 2025:KHC:15883 CRL.P No. 441 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE K.NATARAJAN CRIMINAL PETITION NO. 441 OF 2025 (482(Cr.PC) / 528(BNSS)) BETWEEN: 1. AXIS BANK LTD A BANKING COMPANY, CARRYING ON THE BANKING BUSINESS UNDER THE BANKING REGULATION ACT, 1949, INCORPORATED UNDER THE COMPANIES ACT, 1956 AND HAVING ITS REGISTERED OFFICE AT 'TRISHUL', 3RD FLOOR, OPPOSITE SAMARTHESHWAR TEMPLE, LAW GARDEN, ELLIS BRIDGE, AHMEDABAD -380 006, GUJARAT 2. AXIS BANK LTD MEDAVAKKAM BRANCH, PVG TOWER, 10.95, PLOT NO.135, 136 VGP VIMALA NAGAR, VELACHERY MAIN ROAD, MEDAVAKKAM, CHENNAI 600 100. 3. AXIS BANK LTD. GURGAWAN BRANCH, GROUND FLOOR, KHASRA NO.82 MI, VILLAGE_GURGAWAN, PARGANA AND TEHSIL - TILHAR, DISTRICT- SHAHJAHANPUR, UTTAR PRADESH 242 307. 4. AXIS BANK LTD, PADAVINANGADY BRANCH, UPPER GROUND FLOOR, NO.1-103/2, SHAKTHI SANVI PLAZA, OPP: CORPORATION BANK, MARY Digitally signed by NIJAMUDDIN JAMKHANDI Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:15883 CRL.P No. 441 of 2025 HILLS PADAVINANGADI, PADAVU (V), 5. AXIS BANK LTD. PAYYANNUR BRANCH, S.NO.107/2A, FIRST FLOOR, GOLTENS ARCADE, NEW BUS STAND ROAD, PAYYANNUR, DISTRICT KANNUR. KERALA 670 309. 6. AXIS BANK LTD. KOTTARAKKARA BRANCH, NO.KP IV/830, RELAX INN, TRIVANDRUM ROAD, PULAMON JUNCTION, KOTTARAKKARA, DISTRICT KOLLAM, KERALA 691 531. 7. AXIS BANK LTD, GOPESHWAR BRANCH, GROUND FLOOR, PLOT KHASRA NO.308, KHATA NO.087, DISTRICT CHAMOLI, VILLAGE GOPESHWAR 246 401. UTTARKHAND. 8. AXIS BANK LTD, SECTOR 31 FARIDABAD, GROUND FLOOR AND FIRST FLOOR, SCO NO.62, HUDA MARKET, SECTOR- 31, FARIDABAD 121 003. HARYANA. 9. AXIS BANK LTD, S.V.ROAD RAM MANDIR BRANCH, GROUND FLOOR, SHATRUNJAY PLAZA, S.V.ROAD, RAM MANDIR, GOREGAON WEST, MUMBAI 400 104. MAHARASTRA 10. AXIS BANK LTD, NANDURBAR BRANCH, CTS NO.514 AND 570, PARDESHIPURA, NEAR NAGAR PARISHAD OFFICE, NANDURBAR, MAHARASTRA 425 412. - 3 - NC: 2025:KHC:15883 CRL.P No. 441 of 2025 11. AXIS BANK LTD, MIRA BHAYANDER BRANCH, GROUND AND FIRST FLOOR, SHOP NO.16, 17 AND 005, SHREE VAKTRATUND CHS LTD, SARVODAY NAGAR, MIRA ROAD (EAST),BHAYANDER ROAD, THANE, MAHARASTRA 401 107. 12. AXIS BANK LTD, NERUL EAST BRANCH, HAWARE CENTURION MALL, PLOT NO.88-91, SECTOR-19A, NERUL EAST. NAVI MUMBAI, THANE DISTRICT, MAHARASTRA 400 706. REPRESENTED BY ITS BRANCH HEAD, MR. GAJENDRA SINGH. -AGED ABOUT 33 YEARS, ALSO AT GAJENDRA SINGH, S/O. RAGHUBEER SINGH, AGED ABOUT 33 YEARS, RANSWA, JAGSIAKHAL, PAURI GARHWAL, UTTARAKHAND 246 162. …PETITIONERS (BY SRI. UNNIKRISHNAN M., ADVOCATE) AND: 1. THE STATE OF KARNATAKA BY BY SOUTH CEN CRIME POLICE STATION, SOUTH DIVISION, BENGALURU CITY. REPRESENTED BY SPP HON'BLE HIGH COURT OF KARNATAKA, BANGALORE-01 2. NAGASHREE.N.P, D/O. PUTTASWAMY.N, AGED ABOUT 33 YEARS, R/AT. NO.2/36. OPPALIAS PEG COLLEGE, 22ND MAIN ROAD, 50 FEET ROAD, BSK 1ST STAGE, SRINAGAR, BENGALURU 560 050. - 4 - NC: 2025:KHC:15883 CRL.P No. 441 of 2025 …RESPONDENTS (BY SMT. WAHEEDA H M., HCGP FOR R1) THIS CRL.P IS FILED U/S.482 (FILED U/S.528 BNSS) OF CR.P.C. PRAYING TO SET ASIDE THE ORDER DATED:29.07.2024 PASSED BY THE 45TH ADDITIONAL CHIEF JUDICIAL MAGISTRATE, BENGALURU IN C.C.NO.14244/2024 IN CRIME NO.1060/2022 THAT IS ANNEXURE C IN TERMS OF WHICH, THE PETITIONER IS DIRECTED TO DEFREEZE THE SAVING/CURRENT ACCOUNT NO.922020038586030, A/C NO.922020018541060, A/C NO.922020044658716, A/C 920020051838752, A/C 922020041649737, A/C 922010008862008, A/C 922020040057416, A/C 922020007256047, A/C 922020007256102 A/C 922020038656401, A/C 92202003830779 A/C 922020030640358 MAINTAINED IN THE PETITIONERS BANK. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE K.NATARAJAN ORAL ORDER Learned SPP takes notice for respondent No.1/State. Looking to the facts and circumstances of the case, issuing notice to respondent No.2, is hereby dispensed with. 2. Heard the learned counsel for the petitioners and learned SPP for the respondent No.1./State. 3. This petition is filed by the petitioner/Axis bank Ltd. for setting aside the order dated 29.7.2024 passed by 45th - 5 - NC: 2025:KHC:15883 CRL.P No. 441 of 2025 Additional Chief Judicial Magistrate, Bengaluru in C.C.No.14244/2024 arising out of Crime No.1060/2022 directing the petitioner to de-freeze the savings/current account of the accused maintained by them (12 account in the petitioner's Bank to the complainant). 4. The case of the prosecution before the Trial Court is that the defacto-complainant said to have filed complaint before the concerned police station alleging that the accused persons have cheated by receiving the amounts from the complainant and various persons and deposited in the bank. In pursuance of the Crime No.1060/2022 registered by DCP South Division, South CEN, Bengaluru City police station for the offences punishable under Sections 66(C), 66(D) of Information Technology Act, 2008 and under Sections 419, 420, 504, 506 of IPC against some unknown persons for having debiting the amount of the complainant from the account. The Investigation Officer during the investigation, the account of the some of the customers of the present petitioner's bank have been freezed by the police. Subsequently, the defacto complainant one Nagashree filed petition under Section 451 and 457 Cr.P.C., for defreezing the account. Accordingly, the - 6 - NC: 2025:KHC:15883 CRL.P No. 441 of 2025 trial court ordered to defreeze the account of the various customers with the petitioner's bank i.e., Axis Bank as mentioned below in different accounts of the customer; SI. No. Bank name A/c No. Freezed amount 1. Axis Bank 920020051838752 Rs.40,000/- 2. Axis Bank 922010008862008 Rs.6,000/- 3. Axis Bank 922020041649737 Rs.12,600/- 4. Axis Bank 922020023830779 Rs.2,014/- 5. Axis Bank 922020007256047 Rs.4,028/- 6. Axis Bank 922020007256102 Rs.7,042/- 7. Axis Bank 922020040057416 Rs.4,400/- 8. Axis Bank 922020038586030 Rs.8,644/- 9. Axis Bank 922020030640358 Rs.5,035/- 10. Axis Bank 922020018541060 Rs.4,000/- 11. Axis Bank 922020044658716 Rs.8,760/- 12. Axis Bank 922020038656401 Rs.4,430/- 5. Being aggrieved by the same, the petitioner is before this court. - 7 - NC: 2025:KHC:15883 CRL.P No. 441 of 2025 6. Learned counsel for the petitioner contended that while defreezing the account, the trial court not issued any notice to the petitioner's bank and the petitioner seriously disputed in respect of the account of the customers that without their knowledge, the account has been defreezed and some of the bank customers are having a meagre amount in their accounts, some of them have zero balance in their account. Therefore, because of defreezing of their accounts, the petitioners are liable to pay the amount to the complainant, in view of the order passed by Trial Court. Therefore, prayed for setting aside the same with a request to remand the matter back for fresh consideration by giving an opportunity to banker and pass suitable order. 7. In support of his case, learned counsel also relied upon the order passed by the coordinate bench as well as, the order passed by this court in Crl.P.No.340/2023 and connected matters dated 23.02.2024. 8. Learned SPP submits that before the trial court passed the order there was no opportunity given to the petitioner. - 8 - NC: 2025:KHC:15883 CRL.P No. 441 of 2025 Learned counsel for petitioner admits for not giving any opportunity. 9. Having heard the arguments, perused the records on perusal of the same, admittedly the impugned order dated 29.07.2024 has directed to de-freeze the aforementioned account of the customers. Admittedly, the order sheet reveals that there was no opportunity given to the banker who is having custodian of the bank accounts of the customers. This court also held in the connected matters which is already disposed of, by this court as well as the coordinate bench also disposed some of the matters pertaining to the same petitioner's bank. The order sheet also reveals there is no opportunity given to the banker, while passing the impugned order by the trial court. Therefore, the order in the trial court requires to be set aside with direction to give an opportunity to the petitioner to contest the petition before the trial court. As held above, some of the account holders do not have any sufficient balance and some of them having zero balance in their account. If the order is passed without hearing the petitioner it would definitely cause financial loss to the petitioner bank. Hence, petition is liable to be set aside. - 9 - NC: 2025:KHC:15883 CRL.P No. 441 of 2025 Accordingly, this petition is hereby allowed. The impunged order passed by the trial court dated 29.07.2024 passed in C.C.No.14244/2024 is hereby set aside in respect of the account numbers as mentioned below, Sl. No. Bank name A/c No. Freezed amount 1. Axis Bank 920020051838752 Rs.40,000/- 2. Axis Bank 922010008862008 Rs.6,000/- 3. Axis Bank 922020041649737 Rs.12,600/- 4. Axis Bank 922020023830779 Rs.2,014/- 5. Axis Bank 922020007256047 Rs.4,028/- 6. Axis Bank 922020007256102 Rs.7,042/- 7. Axis Bank 922020040057416 Rs.4,400/- 8. Axis Bank 922020038586030 Rs.8,644/- 9. Axis Bank 922020030640358 Rs.5,035/- 10. Axis Bank 922020018541060 Rs.4,000/- 11. Axis Bank 922020044658716 Rs.8,760/- 12. Axis Bank 922020038656401 Rs.4,430/- - 10 - NC: 2025:KHC:15883 CRL.P No. 441 of 2025 The trial court is directed to hear the petitioner bank in respect of the respondent and dispose the application in accordance with law afresh. Till disposal of the cases by the trial court, the petitioner banker is restrained from releasing the amount of defreezed account of the customers for complying the order of the trial court. Sd/- (K.NATARAJAN) JUDGE AKV,SRK List No.: 1 Sl No.: 29 CT:SK