- 1 - HC-KAR NC: 2026:KHC:20443 WP No. 781 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 15TH DAY OF APRIL, 2026 BEFORE THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO.781 OF 2024 (GM-RES) BETWEEN: AISHWARYA VIGNAN EDUCATIONAL SOCIETY NH-5, AUDISHANKARA GROUP OF INSTITUTIONS GUDUR BY PASS ROAD NELLORE SRI.POTTI SRIRAMULU NELLORE REPRESENTED BY ITS GENERAL SECRETARY VANKI PENCHALAIAH …PETITIONER (BY SRI.MAHESH KUMAR H, ADVOCATE) AND: 1. THE STATE OF KARNATAKA BY CYBER CRIME POLICE STATION NO.1, INFANTRY ROAD POLICE COMMISSIONER OFFICE BANGALORE - 560 001 BY THE STATE PUBLIC PROSECUTOR 2. THE AXIS BANK GUDUR BRANCH D.NO.13/265 HOSPITAL ROAD GUDUR, ANDHRA PRADESH - 524101 REPRESENTED BY ITS MANAGER …RESPONDENTS (BY SMT.NAVYA SHEKAR, AGA FOR R.1; SRI.FRANCIS XAVIER, ADVOCATE FOR R.2) Digitally signed by CHAITHRA A Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:20443 WP No. 781 of 2024 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECTION IN THE NATURE OF CERTIORARI QUASHING THE NOTICE UNDER SECTION 91 AND 102 CRPC AND SECTION 2A OF BANKERS BOOK EVIDENCE ACT DTD 16.11.23 PRODUCED AS ANNEXURE-D ISSUED BY THE R1 BASED ON FIR NO.38/23 PENDING ON THE FILE OF THE 1ST ADDL CHIEF METROPOLITAN MAGISTRATE COURT AT BANGALORE IN SO FAR AS THE PETITIONER IS CONCERNED AND ALL FURTHER PROCEEDINGS PURSUANT THERE TO SECURE THE ENDS OF THE JUSTICE AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM ORAL ORDER The captioned writ petition is filed assailing the Police Notice issued under Sections 91 and 102 of Cr.P.C and Section 2A of the Banker's Book Evidence Act dated 16.11.2021 and consequently, this petition is filed seeking a writ in the nature of mandamus directing respondent Nos.1 and 2 to defreeze the account of petitioner bearing Account No.915010035036836 with respondent No.2. - 3 - HC-KAR NC: 2026:KHC:20443 WP No. 781 of 2024 2. Heard learned counsel for the petitioner, learned counsel appearing for respondent No.2 and learned AGA. 3. The petitioner has approached this Court invoking its extraordinary jurisdiction, seeking quashing of the Police Notice impugned herein. The gist of the petitioner’s grievance is that his bank account was subjected to debit freeze pursuant to a communication issued by respondent No.1 – Investigating Agency to respondent No.2 – Bank, in connection with a criminal case. It is the specific contention of the petitioner that the very substratum on which such coercive action was initiated no longer survives and therefore, continuation of the impugned action amounts to an unwarranted infringement of his proprietary and transactional rights. 4. The petitioner has placed on record, along with memo dated 07.04.2026, a certified copy of the order passed by the competent Criminal Court in C.C.No.30014/2024. A perusal of the said order would - 4 - HC-KAR NC: 2026:KHC:20443 WP No. 781 of 2024 indicate that the learned Magistrate, upon considering the joint memo filed by the parties, has recorded that the dispute between the complainant and the accused has been amicably settled and the offences in question have been duly compounded in accordance with law. Consequently, the accused has been acquitted of the charges levelled against him. 5. This Court has carefully examined the impugned Police Notice produced at Annexure-D. It is evident therefrom that the debit freeze imposed on the petitioner’s bank account was a direct consequence of the registration of FIR No.38/2023 for the offences punishable under Sections 66C and 66D of the Information Technology Act, 2000, and Sections 419 and 420 of the Indian Penal Code. However, a conjoint reading of the order dated 08.11.2024 passed in C.C.No.30014/2024, which emanates from the very same crime number, unmistakably demonstrates that the criminal proceedings have culminated in compounding of offences and resultant acquittal of the accused. - 5 - HC-KAR NC: 2026:KHC:20443 WP No. 781 of 2024 6. In that view of the matter, this Court is of the considered opinion that the very foundation on which the impugned Police Notice was issued stands extinguished. Once the competent Criminal Court has accepted the compromise and recorded an order of acquittal, the continuation of any ancillary or consequential coercive measures, including debit freezing of bank accounts, would be wholly unjustified and legally unsustainable. The impugned action, therefore, cannot be permitted to survive and deserves to be set at naught as being rendered infructuous and devoid of legal basis. 7. It is trite that measures such as debit freezing are intended to aid investigation or secure proceeds of crime during pendency of criminal proceedings. However, when the proceedings themselves have attained finality in favour of the accused, the embargo placed on the petitioner’s account cannot be continued as a matter of course. Any such continuation would amount to arbitrary - 6 - HC-KAR NC: 2026:KHC:20443 WP No. 781 of 2024 deprivation of the petitioner’s right to operate his account and would not withstand judicial scrutiny. 8. For the foregoing reasons and in view of the subsequent development of acquittal recorded by the competent Court, this Court deems it appropriate to interfere and grant the relief sought and pass the following; ORDER (i) The writ petition is hereby allowed; (ii) The impugned Police Notice dated 16.11.2023 bearing Annexure-D, issued by respondent No.1 pursuant to FIR No.38/2023, is hereby quashed and set-aside; (iii) Consequently, respondent Nos.1 and 2 are directed to forthwith defreeze the petitioner’s bank account bearing No.915010035036836; (iv) Respondent No.2 – Bank shall ensure compliance of this order and complete the - 7 - HC-KAR NC: 2026:KHC:20443 WP No. 781 of 2024 process of defreezing within an outer limit of two weeks from the date of receipt of a certified copy of this order. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE NBM List No.: 1 Sl No.: 17