- 1 - HC-KAR NC: 2025:KHC:28458 CRL.P No. 8677 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR CRIMINAL PETITION NO. 8677 OF 2025 BETWEEN: 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. 1. AND HAVING ONE OF ITS BRANCH OFFICE AT AXIS BANK LIMITED, ROCKCEL CO-OP HOUSING SOCIETY LTD., LBS MARG, OPP KAMANI PETROL PUMP, KAMANI KURLA (WEST) MUMBAI, MAHARASTRA - 400 070. AXIS BANK LTD., GROUND FLOOR SHOP NO. 5 6 AND 7, LINK HOUSE, LINK ROAD, MALAD (WEST) MUMBAI, MAHARASHTRA - 400 064 REPRESENTED BY ITS BRANCH HEAD, MRS VAISHALI VINAYAK TAMBWEKAR, AGED ABOUT 51 YEARS. Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:28458 CRL.P No. 8677 of 2025 ALSO AT VAISHALI VINAYAK TAMBWEKAR, NO. A-2/146, ASMITA JYOTI CHS LTD., MARVE ROAD, NEAR MALWANI FIRE BRIGADE, MALWANI, KHARODI, MALAD WEST, MUMBAI - 400 095. …PETITIONER (BY SRI. UNNIKRISHNAN M, ADVOCATE) AND: 1. THE STATE OF KARNATAKA CHIKKABALLAPURA CEN CRIME POLICE STATION, CHICKBALLAPURA DIVISION, CHICKBALLAPURA DISTRICT. REPRESENTED BY SPP, HON'BLE HIGH COURT OF KARNATAKA, BANGALORE - 01. 2. SMT. A.S. VATHSALA, W/O SURESH BABU, AGED ABOUT 55 YEARS NO. 22/23, WARD NO. 06, 2ND CROSS, SHETTYHALLI LAYOUT, BEHIND MUNICIPAL COLLEGE BACK SIDE CHIKKABALLAPURA - 562 101. …RESPONDENTS (BY SRI. CHANNAPPA ERAPPA, HCGP FOR R1; NOTICE TO R2 IS DISPENSED WITH) THIS CRL.P IS FILED U/S 482 OF CR.PC (FILED U/S 528 BNSS) PRAYING TO SET ASIDE THE ORDER, DATED 27.01.2025 PASSED BY THE HONBLE II ADDL. SENIOR CIVIL JUDGE AND JMFC COURT, CHIKKABALLAPURA, IN CRIME NO. 94/2024 I.E., ANNEXURE-C IN TERMS OF WHICH, THE PETITIONER ARE DIRECTED TO DEFREEZE THE CURRENT - 3 - HC-KAR NC: 2025:KHC:28458 CRL.P No. 8677 of 2025 ACCOUNTS BEARING A/C NO.924020034161679 AND A/C. NO.924020018106768 MAINTAINED IN THE PETITIONERS BANK AND TRANSFER THE SAME TO THE ACCOUNT OF THE RESPONDENT NO.2. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, the petitioners seeks the following reliefs: "a) To set aside the Order, Dated: 27.01.2025 passed by the Hon'ble Il Additional Senior Civil Judge & JMFC, Court, Chikkaballapura, in Crime No.94/2024 i.e. ANNEXURE 'C' in terms of which, the Petitioners are directed to defreeze the Current accounts bearing A/c. No. 924020034161679 & A/c. No. 924020018106768 maintained in the Petitioners Bank and transfer the same to the account of the Respondent No.2. b) To pass such other orders as may be deemed expedient in the circumstance of the case and in the interest of justice." 2. Heard learned counsel for the petitioners and learned HCGP for the respondent No.1 and perused the material on record. 3. In addition to reiterating the various contentions urged in the memorandum of petition and referring to the material on record, learned counsel for the petitioners submits that the issue in controversy involved - 4 - HC-KAR NC: 2025:KHC:28458 CRL.P No. 8677 of 2025 in the present petition is directly and squarely covered by the judgment of a Co-ordinate Bench of this Court in the case of Axis Bank Ltd., Vs. The State of Karnataka and Anr. – Crl.P.No.1787/2023 dated 14.12.2023, and the present petition may be disposed of in the above terms. 4. As rightly contended by the learned counsel for the petitioners, the issue in controversy in the present petition is covered by the judgment of this Court in the case of Axis Bank Ltd.,(supra), wherein it is held as under: “The Petitioner which is a Financial Institution is before this Court challenging the order passed by 1st Additional Chief Metropolitan Magistrate on an application filed under Sections 451 and 457 of Cr.P.C. by the complainant/respondent No.2 directing the petitioner-Bank to defreeze the amount belonging to the accused and transfer the said amount to the bank account of the complainants/respondent No.2. 2. The petitioner’s concern is that the order passed by the Jurisdictional Magistrate cannot be - 5 - HC-KAR NC: 2025:KHC:28458 CRL.P No. 8677 of 2025 executed because it surpasses the specified release amount, and numerous courts across the Country have issued directives to the investigating agencies to unfreeze the bank accounts of the accused therein. 3. Learned Special Public Prosecutor on instructions would suggest that the matter may be remanded to the Jurisdictional Courts to consider the application filed under Sections 451 and 457 of Cr.P.C. afresh, by affording an opportunity of hearing to the petitioner. 4. Admittedly, multiple cases are registered against the accused herein within the State and across the country and there are multiple orders passed by the Jurisdictional Magistrates directing the petitioner to unfreeze the account of the accused and transfer the amount to the bank account of the complainants. The passing of multiple orders has caused difficulty to the petitioner/bank in executing the said order, since the amount ordered to be released in some accounts exceeds the amount available in the subject accounts of the accused. Therefore, the learned Magistrate before passing an order directing the petitioner to unfreeze and transfer the amount to the accounts of the complainants, is required to hear the petitioner. Accordingly, I pass the following: - 6 - HC-KAR NC: 2025:KHC:28458 CRL.P No. 8677 of 2025 ORDER i. Criminal Petition is allowed. ii. The order dated 26.11.2021 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.452/2021 is hereby set aside. iii. Matter is remanded to 1st Additional Chief Metropolitan Magistrate, Bengaluru to reconsider the application filed under Sections 451 and 457 of Cr.P.C. afresh, after giving the opportunity of hearing to the petitioner. 5. Till the application is disposed of, the petitioner/bank is restrained from releasing the money in favour of any person from the subject account.” 5. In view of the above, the writ petition is disposed of in terms of the order passed in the case of Axis Bank Ltd.,(supra). 6. Accordingly, I pass the following: ORDER i. Criminal Petition is allowed. ii. The order dated 27.01.2025 passed by the II Additional Senior Civil Judge & JMFC Court, Chikkaballapura in Crime No.94/2024, vide Annexure C, is hereby set aside. - 7 - HC-KAR NC: 2025:KHC:28458 CRL.P No. 8677 of 2025 iii. Matter is remanded to the II Additional Senior Civil Judge & JMFC Court, Chikkaballapura, to reconsider the application filed under Sections 451 and 457 of Cr.P.C. afresh, after giving the opportunity of hearing to the petitioners. iv. Till the application is disposed of, the petitioner/bank is restrained from releasing the money in favour of any person from the subject account. Subject to the aforesaid observations and directions, the Petition stands disposed of. Sd/- (S.R.KRISHNA KUMAR) JUDGE rv List No.: 2 Sl No.: 7 CT: BHK