- 1 - HC-KAR NC: 2025:KHC:46779 WP No. 27278 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. 27278 OF 2025 (GM-RES) BETWEEN: PALAK ENTERPRISES R/P BY ITS PROPRIETOR, SUSHIL KUMAR S/O SURENDER KUMAR AGED ABOUT 50 YEARS, R/@ HOUSE NO. 265, POST GHASOLI, TEHSIL-GANAUR, GHASOLI, SONIPAT, HARIYANA. 131101. …PETITIONER (BY SRI. RAMESH YANKOB.,ADVOCATE) AND: 1. THE STATE OF KARNATAKA REP. BY COMMISSIONER OF POLICE, BANGALORE CITY, ALI ASKER RD, VASANTH NAGAR, BENGALURU, KARNATAKA 560051 REPRESENTED BY SPP HIGH COURT OF KARNATAKA. 2. THE STATE OF KARNATAKA POLICE INSPECTOR, Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:46779 WP No. 27278 of 2025 WHITEFIELD PS, BANGALORE-560066 REPRESENTED BY SPP HIGH COURT OF KARNATAKA. 3. THE STATE OF KARNATAKA REPRESENTED BY, THE SECRETARY DEPARTMENT OF HOME AFFAIRS AMBEDKAR VEEDHI, VIDHANA SOUDHA, BENGALURU-560 001. 4. INDUSLND BANK REPRESENTED BY, THE BRANCH MANAGER INDUSIND BANK, @ SADAR BAZAR, NEW DEHLI.110006. …RESPONDENTS (BY SRI. SHANTHI BHUSHAN A/W SRI. P. PRASANNA KUMAR A/W SRI. H.V. BHANUPRAKASH AMICUS CURIAE SRI. V. SHIVAREDDY., AGA FOR R1 TO R3; SRI. D. NARAYANASWAMY., ADVOCATE FOR R4) THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUITON OF INDIA PRAYING TO DIRECT THE R-4 TO DEFREEZE THE ACCOUNTS OF THE PETITIONER AND PERMIT THE PETITIONER HEREIN TO USE AND OPERATE THE BANK ACCOUNT OF PETITIONER BEARING NO. 201003285726, IFSC-INDB0001422 - 3 - HC-KAR NC: 2025:KHC:46779 WP No. 27278 of 2025 MAINTAINED IN INDUSLAND BANK SADAR BAZAR BRACH AT NEW DELHI. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD ORAL ORDER The petitioner seeks directions to the fourth respondent-Bank to de-freeze its account and to permit it to operate its bank account. This Court has heard not just Sri Ramesh Yankob, the learned counsel for the petitioner but also the learned counsel for the fourth respondent-Bank 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 petitioner's grievance is because the fourth respondent-Bank has frozen its account. The - 4 - HC-KAR NC: 2025:KHC:46779 WP No. 27278 of 2025 Bank has frozen its account because of the communication from the Police Department as mentioned in this petition. Sri Ramesh Yankob 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 this petitioner 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 it to operate the account beyond the amount marked for lien. 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 - 5 - HC-KAR NC: 2025:KHC:46779 WP No. 27278 of 2025 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 ೆ$ೆ ಸಂಬಂ%&ದ (ತ ಜ* ಆ+ದ,"# ಅಥಾ ಇತರ ಸಂದಭ/ಗಳ"# ಈ 1ೆಳ+ನ ಕ4ಮಗಳನು7 ಅನುಸ8ಸತಕ9ದು,. 1) (ದಲ;ೆಯಾ+ ಸ1ಾರಣ>ಲ#ೆ ಾವೇ ಾಂ ಾ!ೆಗಳನು7 ?4ೕ@ Aಾಡತಕ9ದ,ಲ#. ಒಂದು ೇDೆ ?4ೕ@ Aಾಡುವ ಸಂದಭ/ ಬಂದ"# ಸಂಶಾಸFದ (ತ (Lien Amount) ವನು7 Aಾತ4 ?4ೕ@ Aಾಡತಕ9ದು,. ಸಂಪHಣ/ ಾಂ ಾ!ೆಯನು7 ?4ೕ@ Aಾಡತಕ9ದ,ಲ#. 2) ಒಂದು ೇDೆ ಸಂಪHಣ/ ಾ!ೆಯನು7 ?4ೕ@ Aಾಡೇ1ಾದ"# ಸೂಕ ಸಮIಾJK ಮತು ಸ1ಾರಣಗDೆLಂM$ೆ 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,. - 6 - HC-KAR NC: 2025:KHC:46779 WP No. 27278 of 2025 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 petitioner seeks disposal of the petition with a direction to the fourth 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 petitioner's rights, otherwise must be disposed of directing the fourth respondent- Bank to communicate the amount marked for lien as part of investigation and permit the petitioner to operate the account otherwise. As such, the following ORDER [i] The petition is disposed of directing the fourth respondent-Bank to communicate to the petitioner the amount that is marked for lien by the authorities and - 7 - HC-KAR NC: 2025:KHC:46779 WP No. 27278 of 2025 also permit the petitioner to operate the account beyond the amount marked for lien. [ii] The petitioner is 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 fourth respondent-Bank shall inform the amount marked for lien and permit the petitioner to operate the account beyond such amount forthwith. [iii] It is needless to observe that if the authorities for reasons have not marked the amount to be on lien, the petitioner must avail its remedy in accordance with law. Sd/- (B M SHYAM PRASAD) JUDGE NV