- 1 - HC-KAR NC: 2025:KHC:38934 CRL.P No. 12905 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM CRIMINAL PETITION NO. 12905 OF 2024 BETWEEN: AXIS BANK LTD., A BANKING COMPANY, CARRYING ON THE 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, LAR GARDEN, ELLIS BRIDGE, AHMEDABAD 380006. GUJARAT. AXIS BANK LTD., AND HAVING ONE OF ITS BRANCH OFFICE AT GROUND FLOOR AND FIRST FLOOR, KHEWAT/KHATUNI 68/72, MUNICIPAL NO. B-3/256A, DHERIA VILLAGE, MOGA ROAD, SHAHKOT, DISTRICT JALANDHAR, PUNJAB-822131. AXIS BANK LTD., BRANCH OFFICE AT FIRST FLOOR, SINHA NIWAS, NH-98, NEXT TO HARIHARGANJ POLICE STATION, HARIHARGANJ, JHARKHAND-822 131. AXIS BANK LTD., DEVI TOWERS, PLOT NO. 8, CHADRAGIRI COLONY, TIRUMALGHERY, SECUNDERABAD, TELANGANNA-500015. Digitally signed by CHAITHRA A Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:38934 CRL.P No. 12905 of 2024 REP BY ITS BRANCH HEAD, MR NEERAJ ANAND, AGED ABOUT 45 YEARS, ALSO AT: S/O NARENDRA DUTTA, JHA, OPP ICICI BANK, LALBAGH, DARBHANDA BIHAR-846 004. …PETITIONER (BY SRI. UNNIKRISHNAN M., ADVOCATE) AND: 1. THE STATE OF KARNATAKA BY EAST CEN CRIME POLICE STATION, EAST DIVISION, BANGALORE CITY. REP BY SPP HON'BLE HIGH COURT OF KARNATAKA, BANGALORE-01. 2. SABARIGIRIVASAN.A AGED ABOUT 34 YEARS, S/O ARUMUGAM, RESIDING AT NO. 236, BHOVI COLONY, KALKERE MAIN ROAD, RAMAMURTHY NAGAR, BENGALURU-560016, KARNATAKA. …RESPONDENTS (BY SRI. RAHUL RAI K., HCGP FOR R1) THIS CRL.P IS FILED U/S 482 OF CR.P.C. (FILED U/S 528 BNSS) PRAYING TO SET ASIDE THE ORDER DATED 14.12.2023 PASSED BY THE HON'BEL 45TH A.C.M.M BENGALURU IN CR.NO.922/2022 I.E ANNEXURE-C IN TERMS OF WHICH THE PETITIONERS ARE DIRECTED TO DEFREEZE THE SAVINGS ACCOUNT BEARING A/C NO.9220200053185362 AND A/C.NO.921020017921064 MAINTAINED IN THE PETITIONERS BANK AND TRANSFER THE SAME TO THE ACCOUND OF THE RESPONDENT NO.2. - 3 - HC-KAR NC: 2025:KHC:38934 CRL.P No. 12905 of 2024 THIS PETITION, COMING ON FOR FURTH HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM ORAL ORDER The captioned petition is filed by the petitioners – a Scheduled Commercial Bank/Financial Institution, assailing the legality and validity of the order dated 14.12.2023 passed by the Court of the 45th Additional Chief Metropolitan Magistrate, Bengaluru in Crime No.922/2022. By the impugned order, the learned Magistrate directed the petitioners-Bank to defreeze the savings account bearing Nos.9220200053185362 and 921020017921064, maintained in the petitioners' branch, standing in the name of the accused. 2. The petitioners-Bank is gravely aggrieved by the impugned order essentially on the ground that it was passed without affording the Bank an opportunity of hearing, though the directions were addressed exclusively to it. It is the specific grievance of the petitioners-Bank - 4 - HC-KAR NC: 2025:KHC:38934 CRL.P No. 12905 of 2024 that the order was made at the instance of respondent No.2 – the complainant, without impleading or notifying the petitioners-Bank, which is a necessary stakeholder. 3. Learned High Court Government Pleader, placing reliance on orders passed by a Co-ordinate Bench of this Court in similar and analogous matters, submitted that in identical circumstances, this Court has interfered with such orders and has remitted the matter back to the jurisdictional Magistrate for fresh consideration of applications filed under Sections 451 and 457 of the Code of Criminal Procedure, 1973 (“Cr.P.C.”). In those cases, this Court has consistently taken the view that since directions are issued to the Financial Institutions to defreeze accounts, they are indispensable parties to such proceedings, and hence the principles of natural justice require that they be heard before any coercive direction is issued. - 5 - HC-KAR NC: 2025:KHC:38934 CRL.P No. 12905 of 2024 4. The petitioners-Bank has further urged that there are multiple criminal cases registered against the accused, not only within the State of Karnataka but also across various jurisdictions in the country. In several of these cases, different courts have issued orders directing the petitioners-Bank to defreeze the bank accounts of the accused and transfer the balances to the respective complainants. In the absence of being heard in each proceeding, the petitioners-Bank finds itself unable to effectively and uniformly comply with these multiple and sometimes conflicting orders, thereby exposing itself to unnecessary prejudice and potential contempt. 5. This Court finds substance in the apprehensions expressed by the petitioners-Bank. The record clearly discloses that the petitioners-Bank is the entity upon which the obligation of executing the order falls. When multiple rival claims are pending in different jurisdictions, it is only appropriate that the concerned Bank is put on notice before any order is passed directing defreezing or - 6 - HC-KAR NC: 2025:KHC:38934 CRL.P No. 12905 of 2024 remittance. The impugned order, having been passed without such notice, is vitiated by non-compliance with the principles of natural justice. Without going into the merits of the rival claims or entitlement of the complainant, this Court is of the opinion that the matter requires reconsideration at the hands of the jurisdictional Magistrate. 6. Accordingly, this Court deems it fit to adopt the course followed by the Co-ordinate Bench in analogous cases, where notice to respondent No.2/complainant was dispensed with and the matter was remitted back for fresh adjudication. In the present case also, the impugned order is liable to be set-aside with a direction to the learned Magistrate to re-examine the matter after issuing notice to the petitioner-Bank/Financial Institution and all other necessary stakeholders. The Magistrate shall also be at liberty to revise or reaffirm the earlier order, depending upon the existence or otherwise of rival claims. In the event it is found that there are no competing claims or - 7 - HC-KAR NC: 2025:KHC:38934 CRL.P No. 12905 of 2024 conflicting directions, the Magistrate shall not be precluded from directing the Bank to remit the amount in favour of the complainant. However, in order to balance equities, it is clarified that in the event the Bank is required to remit the amount, it shall also pay interest at the rate of 8% per annum from the date of the impugned order till the date of actual payment, and such interest shall be calculated and transferred along with the principal sum. 7. In light of the foregoing discussion, this Court proceeds to pass the following: ORDER (i) The petition is allowed. (ii) The impugned order dated 14.12.2023 passed in Crime No.922/2022 by the 45th Additional Chief Metropolitan Magistrate, Bengaluru is hereby quashed and set aside. (iii) The petitioners-Bank/Financial Institution is granted two weeks’ time to place before the learned Magistrate the details of rival claims and multiple orders, - 8 - HC-KAR NC: 2025:KHC:38934 CRL.P No. 12905 of 2024 if any, which have been passed in respect of the same account or transactions. (iv) Upon such details being placed on record, the learned Magistrate shall ensure that the principle of priority based on the chronological seniority of orders is strictly adhered to. The complainant entitled under the earliest valid order shall be given preference, and the remittance from the account of the accused shall be effected accordingly. (v) The entire exercise shall be completed by the learned Magistrate within six weeks from the date of receipt of a certified copy of this order. The period of six weeks shall include the two weeks’ time granted to the petitioners-Bank to submit the relevant details. (vi) The learned Magistrate shall issue fresh notice to respondent No.2 – complainant and after affording an opportunity of hearing to the petitioners - Bank/Financial Institution, respondent No.2 – complainant, and other rival claimants, - 9 - HC-KAR NC: 2025:KHC:38934 CRL.P No. 12905 of 2024 if any, shall pass a reasoned order afresh in accordance with law. Pending applications, if any, are also disposed off. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE NBM List No.: 1 Sl No.: 0