- 1 - HC-KAR NC: 2025:KHC:34357 CRL.P No. 5940 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 30TH DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM CRIMINAL PETITION NO. 5940 OF 2024 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. AND HAVING ONE OF ITS BRANCH OFFICE AT H/1/40, GROUND FLOOR AND BASEMENT BLOCK 1, SCHEME-2. KRISHNA NAGAR, RAMADEVI KANPUR-208 007. REPRESENTED BY ITS BRANCH HEAD, MR. MAMATHA .K.C …PETITIONER (BY SRI. UNNIKRISHNAN M., ADVOCATE) AND: 1. THE STATE OF KARNATAKA BY WEST CEN POLICE STATION WEST DIVISION, BANGALORE CITY. REPRESENTED BY SPP Digitally signed by AL BHAGYA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:34357 CRL.P No. 5940 of 2024 HON'BLE HIGH COURT OF KARNATAKA BANGALORE. 2. DIVAKAR .V.G S/O LATE GOVINDACHARI .V.B AGED ABOUT 73 YEARS RA/T NO. 487, 1ST FLOOR 1ST MAIN, BEML LAYOUT 5TH STAGE, RAJARAJESHWARINAGAR BANGALORE-560 098. …RESPONDENTS (BY SMT. RASHMI JADHAV, ADDL. SPP FOR R1; SRI. N. VASUDEVA, ADVOCATE FOR R2) THIS CRL.P IS FILED U/S 482 CR.PC PRAYING TO SET ASIDE THE ORDER DATED 30.09.2023 PASSED BY THE HONBLE XLV A.C.M.M BENGALURU IN CR.NO.293/2023 i.e ANNEXURE-C DIRECTING THE PETITIONER TO DEFREEZE THE CURRENT ACCOUNT BEARING NO.922020045815024 MAINTAINED IN THE PETITIONERS BANK. THIS PETITION, COMING ON FOR FURTHER HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM ORAL ORDER In the captioned petition, the petitioner, being a financial institution, is challenging the order dated - 3 - HC-KAR NC: 2025:KHC:34357 CRL.P No. 5940 of 2024 30.09.2023 passed by the XLV Additional Chief Metropolitan Magistrate in Cr.No.293/2023 on an application filed under Sections 451 and 457 of the Code of Criminal Procedure, 1973 (for short "Cr.P.C.”) by the complainant/respondent No.2, whereby the petitioner/financial institution was directed to defreeze the bank account of the accused and transfer the said amount to the bank account of the complainant/respondent No.2. 2. The petitioner/financial institution is aggrieved by the impugned order primarily on the ground that it was not afforded an opportunity of hearing prior to the passing of the order at the instance of the second respondent/complainant. 3. Learned Additional State Public Prosecutor, relying upon a similar order passed by this Court in an identical and analogous matter, has submitted that these matters be remitted to the jurisdictional Magistrate to consider the application under Sections 451 and 457 - 4 - HC-KAR NC: 2025:KHC:34357 CRL.P No. 5940 of 2024 Cr.P.C. afresh, after providing an opportunity of hearing to the petitioner/financial institution. 4. The petitioner/financial institution contends that multiple cases are registered against the accused both within the State and across the country, and that there are several orders directing the petitioner to unfreeze the accounts of the accused and transfer the amounts to the respective complainants. Consequently, the petitioner/financial institution submits that unless it is heard, it is unable to execute these multiple orders effectively. 5. On the other hand, learned counsel for the second respondent/complainant contends that, even in the absence of rival claims, the present petition is being filed and interim order is obtained, thereby effectively preventing the complainant from receiving the amount legally due to them under the order of the jurisdictional Magistrate. - 5 - HC-KAR NC: 2025:KHC:34357 CRL.P No. 5940 of 2024 6. This Court finds some force in the submissions of the second respondent/complainant. The petitioner/financial institution is directed to produce documents, if any, showing the existence of rival claims. While the matter is to be remitted to the learned Magistrate, if the petitioner places on record the multiple orders passed by various Courts, a detailed hearing may not be necessary, unless material documents are produced. In the event the learned Magistrate finds that there are no rival claims or multiple orders, there shall be no impediment to the Magistrate revising the order and directing the petitioner/financial institution to forthwith remit the amount. It is further clarified that the petitioner/financial institution shall pay interest at the rate of 8% per annum from the date of the impugned order, and shall compute and remit the interest along with the principal amount due to the complainant. 7. With the above observations, this Court proceeds to pass the following: - 6 - HC-KAR NC: 2025:KHC:34357 CRL.P No. 5940 of 2024 ORDER (i) The petition is allowed. (ii) The order dated 30.09.2023 passed by XLV Additional Chief Metropolitan Magistrate, Bengaluru, in Cr. No.293/2023 is hereby set aside. (iii) The petitioner/financial institution is granted a period of two weeks to furnish details of rival claims or multiple orders, if any. In the event such documents are placed on record, the learned Magistrate shall ensure that the order of seniority of the earlier orders is taken into consideration. The request of the complainant, who is entitled to the benefit of the earliest order, shall be prioritized, and the amount shall be remitted from the account of the accused to the account of the complainant accordingly. (iv) This exercise shall be completed within six weeks from the date of receipt of the certified copy of this order. (v) The learned Magistrate shall decide the application afresh within six weeks from the date of receipt of the requisite details from the - 7 - HC-KAR NC: 2025:KHC:34357 CRL.P No. 5940 of 2024 petitioner/financial institution, which period includes the two weeks' time granted for submission of the details. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE ALB List No.: 1 Sl No.: 0