$~127 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 5249/2026 & CM APPL. 25727/2026, CM APPL. 25728/2026 SANVI TRADERS .....Petitioner Through: Mr. Puru Mudgil, Ms. Ananya Sikri, Mr. Tushar Sharma, Advs. versus INDIAN BANK & ORS. .....Respondents Through: Mr. Brijesh K Tamber, Mr. Yashu Rustagi, Ms. Chanchala Kumari, Advs. for Indian Bank Mr. Dhaval Mehrotra, Ms. Aditi Desai, Advs. for R-2 CORAM: HON'BLE MR. JUSTICE JASMEET SINGH O R D E R % 17.07.2026 1. This is a writ petition filed under Article 226 of the Constitution of India seeking the following prayers:- “(a) Issue a writ of Mandamus or any other appropriate Writ, Order, or Direction, directing Respondent No. 1 to forthwith revoke the Impugned freeze within 24 hours, failing which the freeze shall stand quashed· (b) Issue a writ of Mandamus or any other appropriate Writ, Order, or Direction, directing Respondent No. 1 to forthwith This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 23/07/2026 at 12:15:57 restore/ de-freeze the Petitioner’s Current Bank Account No. 7887705171 maintained with Indian Bank, Pitampura Branch New Delhi; (c) Issue a writ of Mandamus or any other appropriate Writ, Order or Direction declaring the freezing order dated November 2025, illegal, void, and non-est for non-compliance with Section 106 BNSS ( 102 CrPC) and violation of Articles 14 and 21 of the Constitution; (d) Issue a writ of Mandamus or any other appropriate Writ, Order or Direction to the Respondents to consider and decide upon the Petitioner’s Representation seeking de-freezing of Current Bank Account No. 7887705171 maintained with Indian Bank, Pitampura Branch, New Delhi;…” 2. The petitioner is a proprietorship concern. It is into the business of Trading, having a duly MSME as well as GST Registration No. being 07DWAPK9424HlZF. 3. Around November, 2025, the bank account of the petitioner was frozen by respondent No. 1. Hence, the present petition has been filed. 4. Mr. Rustagi, learned counsel appearing on behalf of the respondent No. 1 bank, draws my attention to paragraph No. 2 of the reply, which reads as under: “2. FACTUAL BACKGROUND 1. The Petitioner a proprietorship concern is into the business of Trading, having MSME and GST Registration no. being 07DWAPK9424HIZF is maintaining Current Account This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 23/07/2026 at 12:15:57 No. 7887705171 with Respondent No.1 "Indian Bank" at Pitampura Branch, New Delhi. 2. During the course of routine monitoring of accounts and transaction activities, undertaken in compliance with RBI guidelines and internal fraud risk monitoring mechanisms, Respondent No.1 " Indian Bank" observed certain suspicious and unusual transaction patterns in the subject account which were not consistent with the declared nature of business and customer profile of the Petitioner. Upon preliminary scrutiny and risk assessment, the account was flagged under suspicious transaction indicators and was categorized as a suspected "mule account" for the purpose of enhanced due diligence and compliance verification. Accordingly, Respondent No.1 undertook necessary preventive and regulatory measures in bona fide discharge of its statutory and regulatory obligations to ensure that banking channels are not misused for suspicious or unlawful financial activities.” 5. He also draws my attention to paragraph No. 2 of the para wise reply which reads as under: “That the contents of Para 4.2 of the Writ Petition are partly admitted to the extent that the Petitioner had submitted certain document including GST Registration Certificate, GST Returns and other business-related documents to Respondent No.1. However, it is denied that the Petitioner was not informed about the compliance concerns or that no This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 23/07/2026 at 12:15:57 opportunity was granted to the Petitioner. It is submitted that the account was flagged during routine monitoring on account of suspicious transaction indicators and the Petitioner was duly informed regarding the requirement of further verification and supporting documentation in accordance with regulatory compliance obligations.” 6. I am of the view that the impugned action of the respondent No. 1 in freezing the bank account of the petitioner is violative of the principles of natural justice. Freezing of an account has serious consequences, especially in regard to business entities and results in commercial death of an enterprise and cannot be done in a cavalier fashion or without complying with the principles of natural justice. 7. Admittedly, in the present case, no show cause notice has been issued, nor any reply has been sought from the petitioner. Additionally, the account of the petitioner has been freezed purportedly under some ‘suspicious transaction indicators’. 8. The details of the suspicious transactions have been neither spelt out nor has the petitioner been given any chance to explain the so called suspicious transactions. 9. From a perusal of the counter affidavit, it seems that the respondent bank after taking the action of freezing of the account, is calling the petitioner to come and explain the so called suspicious transactions and only upon the respondent bank’s satisfaction, the account will be defreezed. Again, the said course does not meet the requirement of principles of natural justice and/ or the due process of law. 10. For the said reasons, the petition is allowed and the bank account of the This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 23/07/2026 at 12:15:57 petitioner being Account No. 7887705171 maintained with Indian Bank, Pitampura Branch New Delhi – 110059 shall be de-freezed within 48 hours of the uploading of the Order. 11. For the aforesaid reasons, the petition is dismissed. JASMEET SINGH, J JULY 17, 2026/sp This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 23/07/2026 at 12:15:57