- 1 - HC-KAR NC: 2026:KHC:12979 WP No. 37196 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3RD DAY OF MARCH, 2026 BEFORE THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO. 37196 OF 2025 (GM-RES) BETWEEN: 1. X MAXIMUS SEA FOOD LLP A LIMITED LIABILITY PARTNERSHIP REGISTERED UNDER LLP ACT, 2008, LLPIN: ACK-0068, HAVING ITS REGISTERED OFFICE AT BUILDING NO.84/12, SYAM SUNDER, SYAM COMPLEX FIRST FLOOR, PANDESHWAR POLICE STATION, MANGALORE, DAKSHINA KANNADA - 575001. REPRESENTED BY MS. ANVARSHA S, S/O SHAJAHAN DESIGNATED PARTNER, AGED ABOUT 30 YEARS, RESIDING AT PADANAKKA VADAKATHIL, UMMARIYA MANZIL, CHINGOLI P.O., ALAPPUZHA 690532, KERALA. …PETITIONER (BY SRI. YUKTHA N., ADVOCATE FOR SRI. MOHAMMAD ANWAR, ADVOCATE (VC)) AND: 1. STATE OF KARNATAKA THROUGH THE SECRETARY, DEPARTMENT OF HOME AFFAIRS, Digitally signed by SHARADAVANI B Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:12979 WP No. 37196 of 2025 VIDHANA SOUDHA, BENGALURU - 560001. 2. THE SUPERINTENDENT OF POLICE / JURISDICTIONAL CYBER CRIME POLICE, DAKSHINA KANNADA / BENGALURU CITY, KARNATAKA - 560 001 3. AXIS BANK LTD., MANGALORE BRANCH, ACCOUNT SERVICES DIVISION, DAKSHINA KANNADA - 575 001. REPRESENTED BY ITS BRANCH MANAGER. 4. THE CIRCLE NODAL OFFICER, AXIS BANK LTD., NITESH TIMES SQUARE, 2ND FLOOR, MG ROAD, BENGALURU - 560001. 5. STATION HOUSE OFFICER, PHASE-2 POLICE STATION, CENTRAL COMMISSIONERATE, GAUTAM BUDDHA NAGAR, UTTAR PRADESH - 201301. …RESPONDENTS (BY SRI. ADITYA DIWAKARA, AGA FOR R1 AND R2 VIDE ORDER DATED 03.03.2026, NOTICE TO R3 TO R5 ARE DISPENSED WITH) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT R-3 AND 4 TO DEFREEZE CURRENT ACCOUNT NO. 924020038335357 OF THE PETITIONER FORTHWITH, EXCEPT TO THE EXTENT, OF RS.20,000/- BEING THE DISPUTED AMOUNT AND ETC. - 3 - HC-KAR NC: 2026:KHC:12979 WP No. 37196 of 2025 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 petitioner has approached this Court being aggrieved by the action of respondent No.5 – Station House Officer, Central Commissionerate, Gautam Buddha Nagar, Uttar Pradesh, who has proceeded to freeze the petitioner’s bank account pursuant to the registration of a complaint relating to a UPI transaction of `20,000/-. 2. It is the specific case of the petitioner that he is engaged in a lawful business of seafood trading and allied operations in the name and style of X Maximus Sea Food LLP, duly registered under the Ministry of Corporate Affairs. According to the petitioner, he has no direct nexus with the alleged fraudulent activity attributed to the remitter of the said sum. However, on account of the complaint registered before respondent No.5, the - 4 - HC-KAR NC: 2026:KHC:12979 WP No. 37196 of 2025 petitioner’s entire bank account has been frozen, thereby paralysing his business operations. 3. The principal grievance projected before this Court is that though the disputed transaction pertains only to a sum of `20,000/-, the entire bank account of the petitioner, which presently reflects a balance of `2,50,519.49/-, has been frozen pursuant to the communication issued by respondent No.5 to the concerned bank. It is contended that such freezing of the entire account, far in excess of the alleged disputed amount, is arbitrary and disproportionate, especially when the petitioner is carrying on regular business activities and requires operational liquidity for day-to-day transactions. 4. Heard the learned counsel appearing for the petitioner and the learned AGA appearing for respondent Nos.1 and 2. 5. The material placed on record indicates that the alleged fraudulent transaction under investigation is - 5 - HC-KAR NC: 2026:KHC:12979 WP No. 37196 of 2025 confined to a sum of `20,000/- which was credited to the petitioner’s account. There is no material placed before this Court at this stage to demonstrate that the entire balance amount in the petitioner’s account represents proceeds of crime. 6. Learned counsel for the petitioner, on instructions, fairly submits that the petitioner has no objection if a lien is marked over the disputed amount of `20,000/-, pending investigation, provided he is permitted to operate the account for the remaining amount so that his legitimate business activities are not brought to a standstill. This submission, in the considered view of this Court, appears to be rational, reasonable and in consonance with the principle of proportionality. When the subject matter of investigation is confined to `20,000/-, freezing of the entire account containing a substantially higher balance would cause undue hardship and irreparable injury to the petitioner’s ongoing business, without materially advancing the cause of investigation. - 6 - HC-KAR NC: 2026:KHC:12979 WP No. 37196 of 2025 7. This Court is therefore of the opinion that the interests of the investigation can be adequately safeguarded by directing the bank to mark a lien to the extent of the disputed amount of `20,000/- and by permitting the petitioner to operate the account subject to reasonable safeguards. Such an arrangement would balance the rights of the petitioner to carry on lawful trade and business with the need to preserve the disputed amount pending completion of investigation. 8. Accordingly, this Court proceeds to pass the following: ORDER i. The writ petition is allowed in part. ii. Respondent Nos.3 and 4 are directed to mark a lien over the petitioner’s bank account to the extent of `20,000/- being the disputed amount involved in the crime. The petitioner shall be permitted to operate the account in - 7 - HC-KAR NC: 2026:KHC:12979 WP No. 37196 of 2025 respect of the balance amount exceeding `20,000/-. iii. The concerned bank shall ensure that the petitioner maintains a minimum balance of `25,000/- in the said account. Subject to maintaining the aforesaid minimum balance, the petitioner shall be at liberty to operate the account in accordance with law. iv. The petitioner shall fully cooperate with the investigation and respond to any notice or summons that may be issued by respondent No.5 in connection with the pending criminal proceedings. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE HDK List No.: 1 Sl No.: 19