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High Court of Karnataka · body

2025 DAILYLAW 46029 (KAR)

AXIS BANK LTD., v. THE STATE OF KARNATAKA BY

CRL.P/295/2025 · 2025-02-25

S R Krishna Kumar

body2025

Judgment text

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- 1 - NC: 2025:KHC:8446 CRL.P No. 295 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF FEBRUARY, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR CRIMINAL PETITION NO. 295 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 AND HAVING ONE OF ITS BRANCH OFFICE AT GR FLR SHOP NO 4 & 5. SHREE DEVKINANADAN BLDG. PLOT NO.575. NEAR CELEBRATION HOTEL. SION TROMBAY ROAD, CHEMBUR. MUMBAI, MAHARASHTRA, PI- 400 071. REPRESENTED BY ITS BRANCH HEAD, MR. NILESH NAMDEO MANDHARE AGED ABOUT43 YEARS ALSO R/AT C/O NAMDEO MANDHARE 504, A-2, GRAND SQUARE, ANANDNAGAR GHODBANDAR ROAD, B/H BHAKI PARK OPOSITE MUCHHALA COLLEGE, THANE WEST MAHARASTRA-400 607. …PETITIONER (BY SRI. UNNIKRISHNAN M, ADVOCATE) Digitally signed by MAYAGAIAH VINUTHA Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:8446 CRL.P No. 295 of 2025 AND: 1. THE STATE OF KARNATAKA BY EAST CEN CRIME POLICE STATION, EAST DIVISION, BANGALORE CITY. REPRESENTED BY SPP HON'BLE HIGH COURT OF KARNATAKA. BANGALORE-560 001. 2. MOHAMED ZAMIER, S/O.ABDUL RASHEED, AGED ABOUT 59 YEARS, R/AT DR. S. KUMAR LAYOUT, NAGAYANAPALYA, MARUTHI SEVA NAGAR, BENGALURU- 560 033. …RESPONDENTS (BY SMT. RASHMI JADHAV, ADDL. SPP FOR R1, R-2 SERVED) THIS CRL.P IS FILED U/S.482 OF CR.P.C PRAYING TO SET ASIDE THE ORDER DATED 30.09.2024 PASSED BY THE 45TH ADDITIONAL CHIEF JUDICIAL MAGISTRATE BENGALURU IN CRIME NO.679/2024 THAT IS ANNEXURE C DIRECTED TO DEFREEZE THE CURRENT ACCOUNT NO.924020013675146 MAINTAINED IN THE PETITIONERS BANK. THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR - 3 - NC: 2025:KHC:8446 CRL.P No. 295 of 2025 ORAL ORDER In this petition, the petitioner seeks the following reliefs: "a) To set-aside the Order, dated: 30.09.2024 passed by the Hon'ble 45th Additional Chief JUDICIAL Magistrate, Bangalore, in Crime No.679/2024 i.e. ANNEXURE 'C' directing the Petitioner to defreeze the current account bearing No. 924020013675146. maintained in the Petitioner's Bank. 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 petitioner and learned HCGP for respondent No.1 and perused the material on record. 3. Respondent No.2, having been served with notice of this petition, has chosen to remain unrepresented and has not contested the petition. 4. The issue involved in the present petition is directly and squarely covered by the decision/orders passed by the co-ordinate Benches of this Court in the following cases: - 4 - NC: 2025:KHC:8446 CRL.P No. 295 of 2025 i) Axis Bank Ltd. vs. State of Karnataka and another - Crl.P.No.340/2023 and connected matters dated 23.02.2024; ii) Axis Bank Ltd. vs. State of Karnataka and another - Crl.P.No.9191/2023 and connected matters dated 14.12.2023; and iii) Axis Bank Ltd. vs. State of Karnataka and another - Crl.P.No.3716/2023 and connected matters dated 25.04.2024; 5. The operative portion of the order passed in Crl.P.No.340/2023 and connected matters reads as under: "ORDER (i) These Criminal Petitions are allowed; (ii) The impugned orders passed by the Trial Court as detailed below, are hereby set aside: SL. NO. CRL.P. NO. ORDER DATED ORDER PASSED BY CRL.NO. 01. 340/2023 14.09.2022 I A.C.M.M. 1044/2022 02. 3414/2023 18.01.2023 I A.C.M.M. 624/2022 03. 9225/2023 24.04.2023 CJM,BANGALORE RURAL DIST. 224/2022 04. 11063/2023 26.07.2023 I A.C.M.M. 346/2023 05. 9219/2023 26.04.2023 I A.C.M.M. 1257/2022 06. 10860/2023 27.06.2023 I A.C.M.M. 1027/2023 07. 12028/2023 31.05.2023 I A.C.M.M. 397/2023 08. 9696/2023 28.03.2023 I A.C.M.M. 1331/2022 09. 9879/2023 27.04.2023 I A.C.M.M. 74/2023 - 5 - NC: 2025:KHC:8446 CRL.P No. 295 of 2025 10. 154/2024 15.03.2023 CJM,BANGALORE RURAL DIST. 33/2023 11. 875/2024 07.11.2023 II ADDL.SR.CJ & JMFC, CHIKKABALLAPUR 32/2022 12. 1819/2024 20.01.2024 XlV ACMM, BANGAL0RE 4135/2023 13. 865/2024 11.07.2023 I A.C.M.M. 1055/2022 14. 1078/2024 27.09.2022 XLV ACMM, BANGAL0RE 539/2022 15. 1164/2024 30.09.2023 XLV ACMM, BANGAL0RE 293/2023 16. 1292/2024 16.12.2023 XLV ACMM, BANGAL0RE 636/2023 17. 1550/2024 31.03.2023 I ADDL. SR.CJ & CJM MYSURU 12/2023 18. 1552/2024 10.08.2023 I A.C.M.M. 296/2023 19. 1646/2024 24.04.2023 CJM,BANGALORE RURAL DIST. 224/2022 20. 9958/2023 21.04.2023 I A.C.M.M. 216/2023 21. 10661/2023 18.07.2023 I A.C.M.M. 1060/2022 22. 11982/2023 04.03.2023 I A.C.M.M. 1060/2022 23 12204/2023 15.07.2023 I A.C.M.M. 265/2023 (iii) The Trial Court is directed to hear the petitioner - Bank and respective respondents and dispose of the applications in accordance with law, afresh.; (iv) Till disposal of the cases by the Trial Court, the petitioner-Bank is restrained from releasing the amounts of de-freezed accounts of customers or complying the order of the Magistrate. - 6 - NC: 2025:KHC:8446 CRL.P No. 295 of 2025 6. The operative portion of the order passed in Crl.P.No.9191/2023 and connected matters reads as under: "ORDER i. Criminal Petitions are allowed. ii. Crl.P.No.9191/2023 - The order dated 10.02.2023 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.937/2022 is hereby set aside. iii. Crl.P.No.11198/2022 - The order dated 06.09.2022 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.445/2022 is hereby set aside. iv. Crl.P.No.11219/2022 - The order dated 14.10.2022 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.889/2022 is hereby set aside. v. Crl.P.No.11522/2022 - The order dated 14.10.2022 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.889/2022 is hereby set aside. vi. Crl.P.No.12360/2022 - The order dated 04.11.2022 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.912/2022 is hereby set aside. vii. Crl.P.No.724/2023 - The order dated 27.10.2022 passed by the 1st Additional Chief - 7 - NC: 2025:KHC:8446 CRL.P No. 295 of 2025 Metropolitan Magistrate, Bengaluru in Cr.No.762/2022 is hereby set aside. viii. Crl.P.No.3275/2023 - The order dated 01.02.2023 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.1032/2022 is hereby set aside. ix. Crl.P.No.3397/2023 - The order dated 19.01.2023 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.1072/2022 is hereby set aside. x. Crl.P.No.3401/2023 - The order dated 03.11.2022 passed by the Principal Senior Civil Judge and Chief Judicial Magistrate, Mysuru in Cr.No.30/2022 is hereby set aside. xi. Crl.P.No.4368/2023 - The order dated 07.02.2023 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.772/2022 is hereby set aside. xii. Crl.P.No.4405/2023 - The order dated 17.02.2023 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.840/2022 is hereby set aside. xiii. Crl.P.No.4413/2023 - The order dated 06.01.2023 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.743/2022 is hereby set aside. xiv. Crl.P.No.4668/2023 - The order dated 14.03.2023 passed by the 1st Additional Chief - 8 - NC: 2025:KHC:8446 CRL.P No. 295 of 2025 Metropolitan Magistrate, Bengaluru in Cr.No.1060/2022 is hereby set aside. xv. Crl.P.No.4777/2023 - The order dated 16.02.2023 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.1255/2022 is hereby set aside. xvi. Crl.P.No.5592/2023 - The order dated 18.04.2023 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.518/2023 is hereby set aside. xvii. Crl.P.No.5618/2023 - The order dated 14.03.2023 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.1060/2022 is hereby set aside. xviii. Crl.P.No.5664/2023 - The order dated 06.04.2023 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.1210/2022 is hereby set aside. xix. Crl.P.No.5834/2023 - The order dated 10.02.2023 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.874/2022 is hereby set aside. xx. Crl.P.No.5905/2023 - The order dated 14.03.2023 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.1060/2022 is hereby set aside. xxi. Crl.P.No.6892/2023 - The order dated 05.01.2023 passed by the 1st Additional Chief - 9 - NC: 2025:KHC:8446 CRL.P No. 295 of 2025 Metropolitan Magistrate, Bengaluru in Cr.No.1183/2022 is hereby set aside. xxii. Crl.P.No.6893/2023 - The order dated 15.03.2023 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.676/2022 is hereby set aside. xxiii. Crl.P.No.6957/2023 - The order dated 02.06.2023 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.1335/2022 is hereby set aside. xxiv. Crl.P.No.7739/2023 - The order dated 16.05.2023 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.211/2023 is hereby set aside. xxv. Crl.P.No.7741/2023 - The order dated 16.05.2023 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.211/2023 is hereby set aside. xxvi. Crl.P.No.7939/2023 - The order dated 28.03.2023 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.953/2022 is hereby set aside. xxvii. Crl.P.No.8086/2023 - The order dated 01.06.2023 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.1245/2022 is hereby set aside. xxviii. Crl.P.No.8143/2023 - The order dated 26.04.2023 passed by the 1st Additional Chief - 10 - NC: 2025:KHC:8446 CRL.P No. 295 of 2025 Metropolitan Magistrate, Bengaluru in Cr.No.1257/2022 is hereby set aside. xxix. Crl.P.No.8276/2023 - The order dated 16.03.2023 passed by the Senior Civil Judge and Principal, JMFC at K.G.F., in Cr.No.1/2022 is hereby set aside. xxx. Crl.P.No.8340/2023 - The order dated 06.06.2023 passed by the Chief Judicial Magistrate, Bengaluru Rural District in Cr.No.77/2023 is hereby set aside. xxxi. Crl.P.No.8341/2023 - The order dated 16.05.2023 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.1292/2022 is hereby set aside. xxxii. Crl.P.No.8342/2023 - The order dated 03.06.2023 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.18/2023 is hereby set aside. xxxiii. Crl.P.No.8844/2023 - The order dated 06.04.2023 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.857/2022 is hereby set aside. xxxiv. Crl.P.No.8851/2023 - The order dated 27.07.2023 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.365/2023 is hereby set aside. xxxv. Crl.P.No.8900/2023 - The order dated 03.05.2023 passed by the 1st Additional Chief - 11 - NC: 2025:KHC:8446 CRL.P No. 295 of 2025 Metropolitan Magistrate, Bengaluru in Cr.No.1250/2022 is hereby set aside. xxxvi. Crl.P.No.9158/2023 - The order dated 21.06.2023 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.412/2023 is hereby set aside. xxxvii. Crl.P.No.9263/2023 - The order dated 14.03.2023 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.1060/2022 is hereby set aside. xxxviii. Crl.P.No.9264/2023 - The order dated 14.11.2022 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.816/2022 is hereby set aside. xxxix. Crl.P.No.10856/2023 - The order dated 10.08.2023 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.382/2023 is hereby set aside. xl. Crl.P.No.11172/2023 - The order dated 06.05.2023 passed by the 3rd Additional Civil Judge and JMFC, Davanagere in Cr.No.13/2023 is hereby set aside. xli. Crl.P.No.11660/2023 - The order dated 20.07.2023 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.44/2023 is hereby set aside. xlii. Crl.P.No.11670/2023 - The order dated 10.08.2023 passed by the 1st Additional Chief - 12 - NC: 2025:KHC:8446 CRL.P No. 295 of 2025 Metropolitan Magistrate, Bengaluru in Cr.No.138/2023 is hereby set aside. xliii. Crl.P.No.11709/2023 - The order dated 14.06.2023 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.324/2023 is hereby set aside. xliv. Crl.P.No.11726/2023 - The order dated 17.08.2023 passed by the 1st Additional Chief Metropolitan Magistrate, Bengaluru in Cr.No.401/2023 is hereby set aside. xlv. Crl.P.No.11778/2023 - The order dated 05.01.2023 passed by the 2nd Additional Senior Civil Judge and JMFC, Chikkaballapura in Cr.No.45/2022 is hereby set aside. xlvi. Matters are remanded to the respective Jurisdictional Magistrate to reconsider the applications filed under Sections 451 and 457 of Cr.P.C. afresh, after giving the opportunity of hearing to the petitioner. xlvii. Till the applications are disposed of, the petitioner/bank is restrained from releasing the money in favour of any person from the subject account." 7. The operative portion of the order passed in Crl.P.No.3716/2023 and connected matters reads as under: "ORDER - 13 - NC: 2025:KHC:8446 CRL.P No. 295 of 2025 (i) Criminal Petitions are allowed. (ii) The impugned order passed by the Trial Courts in these petitions detailed below are set- aside. SL NO CR NO. CRL.P NO. POLICE STATE COURT 1 2156/23 2438/24 North CEN PS THE 45TH ADDL. CMM, BENGALURU 2 1013/22 1378/24 Whitefield CEN PS THE I ADDL. CMM, BENGALURU 3 146/23 2058/24 East CEN PS Notice served THE 45TH ADDL.CMM, BENGALURU 4 135/23 1852/24 North East CEN P S XLV ACMM BANGALURU 5 296/23 1862/24 Whitefield CEN PS THE 1 ADDL. CMM, BENGALURU 6 789/23 1901/24 North East CEN PS THE I ADDL. CMM, BENGALURU 7 140/23 1916/24 South East CEB PS THE 45TH ADDL. CMM, BENGALURU 8 49/23 1931/24 South East CEB Police Station THE 45TH ADDL. CMM, BENGALURU 9 2030/23 2112/24 North East CEN PS THE 45TH ADDL. CMM, BENGALURU 10 94/23 2139/24 Whitefield CEN PS THE 45TH ADDL. CMM, BENGALURU 11 446/23 2409/24 Hulimavu PS THE 45TH - 14 - NC: 2025:KHC:8446 CRL.P No. 295 of 2025 ADDL. CMM, BENGALURU 12 26/23 2439/24 Cen Crime PS, Kodagu-Madikeri. THE COURT OF THE PRL. CIVIL JUDGE & JMFC., MADIKERI 13 1304/23 2669/24 South East CEB PS THE 45TH ADDL. CMM, BENGALURU 14 239/23 2710/24 East CEN PS Notice served THE 45TH ADDL. CMM, BENGALURU 15 17/23 2763/24 West CEN Crime PS Notice served THE 45TH ADDL. CMM, BENGALURU 16 1280/23 2765/24 South East CEN Crime PS THE XLV ADDL. CMM, BENGALURU 17 763/22 2768/24 Central CEN PS THE I ADDL. CMM, BENGALURU 18 262/23 2864/24 East CEN PS Notice served THE 45TH ADDL. CMM, BENGALURU 19 843/22 2945/24 East Crime PS THE 45TH ADDL. CMM, BENGALURU 20 09/19 2948/24 Cyber Crime CID Police Station, CID, Headquarters. THE I ADDL. CMM, BENGALURU 21 291/24 3040/24 South CEN Crime PS THE 45TH ADDL. CMM, BENGALURU 22 271/23 3340/24 North East CEN PS THE 45TH ADDL. CMM, BENGALURU 23 51/24 3451/24 North CEN PS XLV ACMM BAGALURU 24 913/23 3508/24 South East CEN THE 45TH - 15 - NC: 2025:KHC:8446 CRL.P No. 295 of 2025 PS ADDL. CMM, BENGALURU 25 239/23 3838/24 East CEN PS Notice served in Fr No3928/24 THE 45TH ADDL. CMM, BENGALURU 26 23923 2192/24 East CEN Crime PS THE 45TH ADDL. CMM, BENGALURU 27 870/23 2695/24 South CEN PS THE 45TH ADDL. CMM, BENGALURU 28 929/23 2709/24 Central CEN PS THE 45TH ADDL. CMM, BENGALURU 29 1288/22 3716/23 West CEN PS THE I ADDL. CMM, BENGALURU 30 1060/23 9826/23 South CEN PS THE I ADDL. CMM, BENGALURU (iii) The Trial Courts are directed to hear the petitioner – Bank and respective respondents and thereafter dispose of the application filed by the applicants under Sections 451 and 457 of Cr.P.C. in accordance with law afresh. (iv) Till the disposal of the application by the Trial Courts, the petitioner – Bank is restrained from releasing the amounts of de-freezed accounts of accused or complying the order of the Magistrate. (v) It is made clear that this order of remand is restricted only insofar as the cases where the applicants/customers have not received the amount - 16 - NC: 2025:KHC:8446 CRL.P No. 295 of 2025 in their bank account pursuant to the impugned orders passed by the Trial Courts. (vi) The Trial Courts are directed to dispose of the application filed under Sections 451 and 457 of Cr.P.C. in the aforesaid cases within a period of one month from the date of receipt of a certified copy of this order." 8. In view of the aforesaid facts and circumstances of the instant case and the issue in controversy involved in the present petition being directly and squarely covered by the aforesaid orders passed by the co-ordinate Benches of this Court in the aforesaid cases, I am of the view that the impugned order passed by the trial Court also deserves to be set aside by issuing certain directions in this regard. 9. In the result, I pass the following: ORDER i) The petition is hereby allowed. ii) The impugned order dated 30.09.2024 passed by 45th Additional Chief Judicial Magistrate, Bangalore in Crime No.679/2024 registered by the respondent No.1-Police is hereby set aside. - 17 - NC: 2025:KHC:8446 CRL.P No. 295 of 2025 iii) The matter is remitted back to the respective jurisdictional Magistrate to reconsider the application filed under Sections 451 and 457 of Cr.P.C. afresh and in accordance with law after giving sufficient and reasonable opportunity to both the parties. iv) Till disposal of the application by the trial Court, the petitioner-bank is restrained from releasing the amounts of de-freezed account of accused or complying the order of the learned Magistrate. SD/- (S.R.KRISHNA KUMAR) JUDGE VM