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2025 DAILYLAW 87414 (KAR)

AXIS BANK LTD. v. THE STATE OF KARNATAKA

CRL.P/3660/2025 · 2025-07-21

S R Krishna Kumar

body2025

Judgment text

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- 1 - HC-KAR NC: 2025:KHC:27355 CRL.P No. 3660 of 2025 C/W CRL.P No. 4056 of 2025 CRL.P No. 4304 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 21ST DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR CRIMINAL PETITION NO.3660 OF 2025 (482(Cr.PC)/528(BNSS)) C/W CRIMINAL PETITION NO.4056 OF 2025 (482(Cr.PC)/528(BNSS)) CRIMINAL PETITION NO.4304 OF 2025 (482(Cr.PC)/528(BNSS)) IN CRL.P.NO.3660/2025: 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 OPP. SAMARTHESHWAR TEMPLE LAW GARDEN, ELLIS BRIDGE AHMEDABAD-380 006 GUJARAT AND HAVING ONE OF ITS BRANCH OFFICE AT 1) HOUSE NO.9, ROAD NO.2 SONARI WEST LAYOUT JAMSHEDPUR DIST.PURBI SINGBHUM JHARKHAND-831 011 Digitally signed by B LAVANYA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:27355 CRL.P No. 3660 of 2025 C/W CRL.P No. 4056 of 2025 CRL.P No. 4304 of 2025 2) GROUND FLOOR, PLOT NO.64 CTS NO.15308/27 SARANG CO-OPHSG SOC. GARKHEDA, AURANGABAD DIST: AURANGABAD MAHARASHTRA-431 005 REP. BY ITS BRANCH HEAD MR.ANAND ASHOK AUNDHEKAR AGED ABOUT 51 YEARS ALSO AT: 3) C/O.ANAND ASHOK AUNDHEKAR HOUSE NAME KALARANG PLOT NO.17 RAILWAY STATION ROAD NEAR DEOGIRI COLLEGE RACHNAKAR COLONY AURANGABAD, AURANGABAD MAHARASHTRA-431 001 …PETITIONER (BY SRI UNNIKRISHNAN M., ADVOCATE) AND: 1. THE STATE OF KARNATAKA BY EAST CEN CRIME POLICE STATION BENGALURU DISTRICT REPRESENTED BY SPP HON'BLE HIGH COURT OF KARNATAKA BENGALURU-560 001 2. SMT.IRA SATVELKAR D/O.SATISH SATVELKAR AGED ABOUT 26 YEARS R/AT HOTEL ROYAL ORCHID GOLF AVENUE, HAL OLD AIRPORT ROAD DOMLUR, BENGALURU CITY KARNATAKA-560 008 …RESPONDENTS (BY SMT.SOWMYA R., HCGP FOR R-1; MS.T.CHANVI MADAPPA FOR SRI AIYAPPA K.G., ADVOCATES FOR R-2) - 3 - HC-KAR NC: 2025:KHC:27355 CRL.P No. 3660 of 2025 C/W CRL.P No. 4056 of 2025 CRL.P No. 4304 of 2025 THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF CR.P.C (UNDER SECTION 528 OF BNSS) PRAYING TO SET ASIDE THE ORDER DATED 28.10.2024 PASSED BY XLV ADDITIONAL CHIEF JUDICIAL MAGISTRATE, BENGALURU IN CRIME NO.672/2024 VIDE ANNEXURE-C. IN CRL.P.NO.4056/2025: 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 OPP: SAMARTHESHWAR TEMPLE LAW GARDEN, ELLIS BRIDGE AHMEDABAD-380 006 GUJARAT AND HAVING ONE OF ITS BRANCH OFFICE AT GROUND FLOOR, SASTHI NARAYAN ENCLAVE, S.B.GORAI ROAD-713 301 REP. BY ITS BRANCH HEAD MR.SABHASHIS LOHIRI AGED ABOUT 47 YEARS ALSO AT: K.S.ROAD, PALASH BHOGAN UTC, ASAPLAL MC PALAKSHAN DHADKA, DIST-BODHAMAN WEST BENGAL-713 302 … PETITIONER (BY SRI UNNIKRISHNAN M., ADVOCATE) - 4 - HC-KAR NC: 2025:KHC:27355 CRL.P No. 3660 of 2025 C/W CRL.P No. 4056 of 2025 CRL.P No. 4304 of 2025 AND: 1. THE STATE OF KARNATAKA BY SOUTH CEN CRIME POLICE STATION DCP SOUTH DIVISION BANGALORE DISTRICT REPRESENTED BY SPP HON'BLE HIGH COURT OF KARNATAKA BENGALURU-560 001 2. SMT.MEERA SURESH W/O.R.SURESH AGED ABOUT 57 YEARS RESIDING AT GF-3 DEVAGIRI MEADOWS 34TH CROSS, 14TH MAIN ROAD BANASHANKARI 2ND STAGE BENGALURU CITY KARNATAKA-560 070 ... RESPONDENTS (BY SMT.SOWMYA R., HCGP FOR R-1; SRI PRASHANT KUMAR, ADVOCATE FOR R-2) THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF CR.PC (FILED UNDER SECTION 528 OF BNSS) PRAYING TO SET ASIDE THE ORDER DATED 28.06.2024 PASSED BY XLV ADDITIONAL CHIEF METROPOLITAN MAGISTRATE, BENGALURU IN CRIME NO.779/2024 VIDE ANNEXURE-C. IN CRL.P NO.4304/2025 BETWEEN: AXIS BANK LTD. A BANKING COMPANY CARRYING ON THE BANKING BUSINESS UNDER THE BANKING REGULATION ACT, 1949 INCORPORATED UNDER THE COMPANIES ACT, 1956 - 5 - HC-KAR NC: 2025:KHC:27355 CRL.P No. 3660 of 2025 C/W CRL.P No. 4056 of 2025 CRL.P No. 4304 of 2025 AND HAVING ITS REGISTERED OFFICE AT 'TRISHUL', 3RD FLOOR OPP: SAMARTHESHWAR TEMPLE LAW GARDEN, ELLIS BRIDGE AHMEDABAD-380 006 GUJARAT AND HAVING ONE OF ITS BRANCH OFFICE AT GROUND FLOOR RAJARHAT GREENS RAJARHAT MAIN ROAD RAJARHAT, DIST.NORTH 24 PARGANAS WEST BENGAL 700 135 REPRESENTED BY ITS BRANCH HEAD MR.APURBA DEV AGED ABOUT 58 YEARS ALSO AT: FLAT NO.-T7/F11/G/1. EASTERN HIGH ACTION AREA-1 NEW TOWN NORTH 24N PARGANAS WEST BENGAL-700 156 ... PETITIONER (BY SRI UNNIKRISHNAN M., ADVOCATE) AND: 1. THE STATE OF KARNATAKA BY SOUTH CEN CRIME POLICE STATION SOUTH DIVISION BENGALURU REPRESENTED BY SPP HON'BLE HIGH COURT OF KARNATAKA BENGALURU-560 001 2. SRI MANU KUMAR K.M. S/O.MAHADEVAIAH H. AGED ABOUT 32 YEARS - 6 - HC-KAR NC: 2025:KHC:27355 CRL.P No. 3660 of 2025 C/W CRL.P No. 4056 of 2025 CRL.P No. 4304 of 2025 R/AT NO.28, SRINILAYAM 2ND CROSS, 2ND MANI HULIMAVU 2ND PHASE BANNERGHATTA MAIN ROAD BENGALURU-560 076 ... RESPONDENTS (BY SMT.SOWMYA R., HCGP FOR R-1; MS.T.CHANVI MADAPPA FOR SRI LOKESHA G., ADVOCATES FOR R-2) THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF CR.PC (FILED UNDER SECTION 528 OF BNSS) PRAYING TO SET ASIDE THE ORDER DATED 18.01.2025 PASSED BY XLV ADDITIONAL CHIEF JUDICIAL MAGISTRATE, BENGALURU IN CRIME NO.1446/2024 VIDE ANNEXURE-C. THESE CRIMINAL PETITIONS ARE COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In Crl.P.No.3660/2025, the petitioner seeks the following reliefs: "a) To set-aside the Order, Dated: 28.10.2024 passed by The Hon'ble Court of the 45th Additional Chief Judicial Magistrate, Bengaluru, in Crime No.672/2024 i.e. Annexure 'C' in terms of which, the Petitioner is directed to defreeze the Savings / current account bearing A/c.No.923020049080681 & A/c. No. 924020007855936 maintained in the - 7 - HC-KAR NC: 2025:KHC:27355 CRL.P No. 3660 of 2025 C/W CRL.P No. 4056 of 2025 CRL.P No. 4304 of 2025 Petitioner's 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. In Crl.P.No.4056/2025, the petitioner seeks the following reliefs: "a) To set-aside the Order, Dated: 28.06.2024 passed by The Hon'ble Court of the 45th Additional Chief Judicial Magistrate, Bengaluru, in Crime No.779/2024 i.e. Annexure 'C' in terms of which, the Petitioner is directed to defreeze the Savings / current account bearing A/c.No.920020055043437 maintained in the Petitioner's 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.” 3. In Crl.P.No.4304/2025, the petitioner seeks the following reliefs: "a) To set-aside the Order, Dated: 18.01.2025 passed by the 45th Additional Chief Judicial Magistrate, Bengaluru, in Crime No.1446/2024 - 8 - HC-KAR NC: 2025:KHC:27355 CRL.P No. 3660 of 2025 C/W CRL.P No. 4056 of 2025 CRL.P No. 4304 of 2025 i.e. Annexure 'C' in terms of which, the Petitioner is directed to defreeze the current account bearing A/c.No.924020011509744 maintained in the Petitioner's 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.” 4. Heard learned counsel for the petitioner, learned High Court Government Pleader for respondent No.1 and learned counsels for respondent No.2 and perused the material on record. 5. In addition to reiterating the various contentions urged in the memorandum of petitions and referring to the material on record, learned counsel for the petitioner submits that the issue in controversy involved in the present petitions is directly and squarely covered by the judgment of the 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, - 9 - HC-KAR NC: 2025:KHC:27355 CRL.P No. 3660 of 2025 C/W CRL.P No. 4056 of 2025 CRL.P No. 4304 of 2025 and the present petitions may be disposed of in the above terms. 6. As rightly contended by the learned counsel for the petitioner, the issue in controversy in the present petitions 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 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. - 10 - HC-KAR NC: 2025:KHC:27355 CRL.P No. 3660 of 2025 C/W CRL.P No. 4056 of 2025 CRL.P No. 4304 of 2025 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: ORDER i. Criminal Petition is allowed. - 11 - HC-KAR NC: 2025:KHC:27355 CRL.P No. 3660 of 2025 C/W CRL.P No. 4056 of 2025 CRL.P No. 4304 of 2025 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.” 7. In view of the above, the petitions are disposed of in terms of the order passed in the case of Axis Bank Ltd. supra. 8. Accordingly, I pass the following: ORDER i) The petitions are hereby allowed; ii) In Crl.P.No.3660/2025, the order dated 28.10.2024 in Crime No.672/2024; in Crl.P.No.4056/2025, the order dated 28.06.2024 - 12 - HC-KAR NC: 2025:KHC:27355 CRL.P No. 3660 of 2025 C/W CRL.P No. 4056 of 2025 CRL.P No. 4304 of 2025 in Crime No.779/2024 and in Crl.P.No.4304/2025, the order dated 18.01.2025 in Crime No.1446/2024 passed by XLV Additional Chief Judicial Magistrate, Bengaluru, are hereby set aside; iii) The matters are remanded to XLV Additional Chief Judicial 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; iv) Till the applications a r e disposed of, the petitioner/Bank is restrained from releasing the money in favour of any person from the subject account. It is made clear that this order is restricted only to the petitioner-Axis Bank and will not pertain to any other Bank. Sd/- (S.R.KRISHNA KUMAR) JUDGE LB/List No.: 1 Sl No.: 24