- 1 - HC-KAR NC: 2025:KHC:46779 WP No. 16998 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 14TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 16998 OF 2025 (GM-RES) BETWEEN: 1. SALIM BAHADDURKHAN SHILEDAR AGED ABOUT 34 S/O BAHADDURKHAN TEKADI TAKIYA, CHIKODI BELGUAM, KARNATAKA - 591201. 2. NILESH DEVANKAR AGED ABOUT 25 S/O LAXMAN DEVANKAR NO. 4792, DR PRABHAKAR KORE NAGAR, CHIKKODI, BELGUAM, KARNATAKA 591201. …PETITIONERS (BY SRI. MUHAMMAD IRSHAD M H.,ADVOCATE) Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:46779 WP No. 16998 of 2025 AND: 1. KOTAK MAHINDRA BANK REP BY BRANCH MANAGER 10/171, I FLOOR, BASAVESWAR BAZAR, WARD NO.10, H.B.HALLI, HAGARIBOMMANAHALLI, KARNATAKA 583212. 2. SOLAPUR RURAL CYBER POLICE STATION DATTA NAGAR, SAKHAR PETH SOLAPUR, MAHARASHTRA 413005. 3. BHIWANI CEN POLICE STATION 2182, SECTOR 13 RD, HUDA, BHIWANI, HARYANA 127021. …RESPONDENTS (BY SRI. SHANTHI BHUSHAN A/W SRI. P. PRASANNA KUMAR A/W SRI. H.V. BHANUPRAKASH AMICUS CURIAE SRI. JAI M PATIL.,ADVOCATE FOR R1; NOTICE TO OTHER RESPONDENTS ARE DEFERRED) THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO 1. ISSUE A WRIT OF MANDAMUS OR ANY OTHER APPROPRIATE WRIT, ORDER, OR DIRECTION TO - 3 - HC-KAR NC: 2025:KHC:46779 WP No. 16998 of 2025 KOTAK MAHINDRA BANK TO MARK THE DISPUTED AMOUNT OF RS.6865 UNDER LIEN AND IMMEDIATELY DEFREEZE THE REMAINING BALANCE OF RS. 6,01,403.4 IN THE PETITIONER'S ACCOUNT (ACCOUNT NUMBER 1647765437); 2. DIRECT THE RESPONDENT NO 1 (KOTAK MAHINDRA BANK) TO ENSURE THAT NO FURTHER FREEZING OF THE PETITIONERS ACCOUNT TAKES PLACE UNTIL A THOROUGH INVESTIGATION IS CONDUCTED AND PROPER NOTICE IS ISSUED TO THE PETITIONERS REGARDING THE STATUS OF THE COMPLAINTS AND INVESTIGATION. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD ORAL ORDER The petitioners seek directions to the respondent [Bank] to de-freeze their account and to permit them to operate their bank account. This Court has heard not just Sri Muhammad Irshad M H, the learned counsel who is on record for the petitioners but also the learned counsels for the first - 4 - HC-KAR NC: 2025:KHC:46779 WP No. 16998 of 2025 respondent and Sri H.V. Bhanu Prakash, the learned Additional Advocate General, Sri P. Prasanna Kumar and Sri Shanthi Bhushan H, the learned amici curiae, who are assisting this Court in disposal of similar matters. 2. The petitioners' grievance is because the Bank has frozen their account. The Bank has frozen their account because of the communication from the Police Department as mentioned in this petition. Sri Muhammad Irshad M H submits, with the advantage of the arguments that have been advanced on the larger question on whether the account holders must receive due information about the amounts marked for lien on receipt of complaints, that the grievance of these petitioners would be addressed if this Court disposes of the petition with directions to the Bank to limit freezing to the amount marked for lien by the concerned Police and permit them to operate the account beyond the amount marked for lien. - 5 - HC-KAR NC: 2025:KHC:46779 WP No. 16998 of 2025 3. Sri H.V. Bhanu Prakash and Sri Shanthi Bhushan H are categorical that instructions have been issued to all the Banks to limit the de-freezing to the amounts marked for lien and not restrict the account holders from operating the accounts beyond the amounts marked for lien. In fact, Sri H.V. Bhanu Prakash invites this Court's attention to the Circular dated 20.07.2024 and the Standing Order No.1041 dated 18.03.2025 to emphasize that the Police Investigation Authorities within the State have been called upon not to issue any directions to freeze the bank accounts without justifiable reasons and if an account has to be frozen, it should only be to the extent of the suspected transaction. The relevant part of the Circular reads as under: "ಾವೇ ತ ೆ ಸಂಬಂಧ ಆೋತ ವ ಅಥಾ ಇತೆ ಾವೇ ವಗಳ ಅಥಾ ಸಂೆಗಳ ಾಂ ಾ!ೆಗಳ"# ತ ೆ$ೆ ಸಂಬಂ%&ದ (ತ ಜ* ಆ+ದ,"# ಅಥಾ ಇತರ ಸಂದಭ/ಗಳ"# ಈ 1ೆಳ+ನ ಕ4ಮಗಳನು7 ಅನುಸ8ಸತಕ9ದು,. - 6 - HC-KAR NC: 2025:KHC:46779 WP No. 16998 of 2025 1) (ದಲ;ೆಯಾ+ ಸ1ಾರಣ>ಲ#ೆ ಾವೇ ಾಂ ಾ!ೆಗಳನು7 ?4ೕ@ Aಾಡತಕ9ದ,ಲ#. ಒಂದು ೇDೆ ?4ೕ@ Aಾಡುವ ಸಂದಭ/ ಬಂದ"# ಸಂಶಾಸFದ (ತ (Lien Amount) ವನು7 Aಾತ4 ?4ೕ@ Aಾಡತಕ9ದು,. ಸಂಪHಣ/ ಾಂ ಾ!ೆಯನು7 ?4ೕ@ Aಾಡತಕ9ದ,ಲ#. 2) ಒಂದು ೇDೆ ಸಂಪHಣ/ ಾ!ೆಯನು7 ?4ೕ@ Aಾಡೇ1ಾದ"# ಸೂಕ ಸಮIಾJK ಮತು ಸ1ಾರಣಗDೆLಂM$ೆ ತಮ$ೆ ಸಂಬಂಧಪಟO ಅಪರ P"ೕQ ಆಯುಕರು ರವ8ಂದ "Rತ ಅನುಮS ಪTೆದು ?4ೕ@ Aಾಡುವದು. 3) ಾವೇ ಾಂ ;ೊಂM$ೆ ಪತ4 ವವUಾರ AಾVಾಗ Bankers Books Evidence Act-1891 ನ"# ೕVರುವ ಸೂಚ;ೆಗಳನು7 ಕTಾXಯಾ+ Yಾಲ;ೆ Aಾಡತಕ9ದು,. 4) ಾವೇ ಾಂ ಾ!ೆಗಳನು7 ಮತು ಾ!ೆಗಳ Lien Amount ಗಳನು7 ?4ೕ@ AಾVದ"#. ಕೂಡ]ೆ ಈ Aಾ^Sಯನು7 ಸಂಬಂಧಪಟO ;ಾಾಲಯ1ೆ9 ಕTಾXಯಾ+ ಸ"#ಸತಕ9ದು,. 5) ಈ ಸು!ೋ]ೆಯನು7 _ೕ8 ವS/ಸುವ ತ ಾ%1ಾ8ಗಳ >ರುದ` ಸUಾಯಕ P"ೕQ ಆಯುಕರು/ ಉಪ P"ೕQ ಆಯುಕರುಗಳb c&ನ ಕ4ಮ1ಾ9+ ವರM ಸ"#ಸತಕ9ದು,." In the light of this, the petitioners seek disposal of the petition with a direction to the first respondent-Bank to limit the freezing to the amount marked for lien and this Court is of the view that the petition, without prejudice to the petitioners' rights, otherwise must be disposed of directing the first respondent- Bank to communicate the amount marked for lien as - 7 - HC-KAR NC: 2025:KHC:46779 WP No. 16998 of 2025 part of investigation and permit the petitioners to operate the account otherwise. As such, the following ORDER [i] The petition is disposed of directing the first respondent-Bank to communicate to the petitioners the amount that is marked for lien by the authorities and also permit them to operate the account beyond the amount marked for lien. [ii] The petitioners are reserved with liberty to file a certified copy of this order within two [2] weeks from the date of receipt of a copy of this order and the first respondent-Bank shall inform the amount marked for lien and permit the petitioners to operate the account beyond such amount forthwith. - 8 - HC-KAR NC: 2025:KHC:46779 WP No. 16998 of 2025 [iii] It is needless to observe that if the authorities for reasons have not marked the amount to be on lien, the petitioners must avail their remedy in accordance with law. Sd/- (B M SHYAM PRASAD) JUDGE NV List No.: 1 Sl No.: 0