- 1 - HC-KAR NC: 2026:KHC:16086 WP No. 5355 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF MARCH, 2026 BEFORE THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO. 5355 OF 2026 (GM-RES) BETWEEN: SRI SUNIL RAJ S/O APPAJI GOWDA, AGED ABOUT 46 YEARS, NO. 40, 3RD MAIN ROAD, AROGYA BADAVANE, SRIGANDA KAVAL, ANNAPOORNESHWARI NAGAR, VISHWANEEDAM POST, BENGALURU, KARNATAKA 560091 …PETITIONER (BY SRI. ARVINDA S., ADVOCATE) AND: 1. THE UJJIVAN SMALL FINANCE BANK LIMITED REPRESENTED BY THE BANK MANAGER, UJJIVAN SMALL FINANCE BANK LIMITED, SHREE BALAJI COMPLEX, NO.92, GROUND FLOOR 1ST MAIN ROAD, KEMPAPURA AGRAHARA, NEAR BATA SHOW ROOM CHANDRALAYOUT, BENGALURU 560040 2. THE STATION HOUSE OFFICER BINANIPURAM POLICE STATION ERNAKULAM RURAL, KERALA-683502 Digitally signed by CHAITHRA A Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:16086 WP No. 5355 of 2026 3. THE STATION HOUSE OFFICER RAMBAN POLICE STATION JAMMU AND KASHMIR - 182114 …RESPONDENTS (BY SMT. NAVYA SHEKHAR, AGA FOR R2 & R3) THIS WRIT PETITION FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO A. ISSUE A WRIT OF MANDAMUS OR ANY OR ANY APPROPRIATE WRIT/ORDER DIRECTING RESPONDENTS NO. 1,2 AND 3 TO PERMIT OPERATION OF THE PETITIONER'S BANK ACCOUNT BEARING NO. 1112120020000441, SUBJECT TO CONTINUATION OF LIEN/FREEZING TO EXTENT OF RS. 525.87/- AND 135.41/-, TOTALLING RS. 661.28/-ONLY. B. DIRECT RESPONDENT NO. 1 BANK TO RELEASE WITHDRAWAL OF ALL AMOUNTS IN EXCESS OF RS. 525.87/- AND 135.41/-, TOTALLING 661.28 INCLUDING FUTURE DAILY TRANSACTIONS. 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 Petitioner, who runs a provisional store is aggrieved by the action of respondent No.1/bank in freezing the current account bearing No.1112120020000441, in view of communication received by respondent Nos.2 and 3 calling upon the bank to mark a lien totaling Rs.661.28/-. The - 3 - HC-KAR NC: 2026:KHC:16086 WP No. 5355 of 2026 action of freezing of the account is questioned by the petitioner. 2. This Court is of the considered view that issuance of notice to the respondents is not necessary for disposal of the present petition, having regard to the nature of the order proposed to be passed. This Court is not inclined to interfere with the marking of lien as reflected in the communications issued by respondent Nos.2 and 3–Investigating Agencies. 3. On perusal of the material on record, it is evident that respondent Nos.2 and 3 have addressed communications to respondent No.1–Bank indicating that certain amounts, namely Rs.525.87/- and Rs.135.41/-, aggregating to Rs.661.28/-, are suspected to be proceeds of crime. Acting upon the said communications, respondent No.1–Bank has proceeded to freeze the entire current account of the petitioner. - 4 - HC-KAR NC: 2026:KHC:16086 WP No. 5355 of 2026 4. In the considered opinion of this Court, the action of respondent No.1–Bank in freezing the entire account is disproportionate and unwarranted. When the alleged proceeds of crime are confined to a sum of Rs.661.28/-, the interest of the Investigating Agencies would be adequately safeguarded by restricting the lien to the said amount. Freezing of the entire account has the effect of disabling the petitioner, who is engaged in running a provisional store, from carrying on his day-to-day business operations. Such action infringes the petitioner’s right to carry on trade or business guaranteed under Article 19(1)(g) of the Constitution of India. Therefore, the petitioner is entitled to operate the account, subject to lien being maintained to the extent indicated above. 5. Accordingly, this Court proceeds to pass the following: ORDER (i) The writ petition is allowed in part; - 5 - HC-KAR NC: 2026:KHC:16086 WP No. 5355 of 2026 (ii) The action of respondent No.1–Bank in freezing the entire current account of the petitioner is declared unsustainable; (iii) Respondent No.1–Bank shall confine the lien on the petitioner’s Current Account bearing No.1112120020000441 to a sum of Rs.661.28/-; (iv) The petitioner is permitted to operate the said bank account for all transactions exceeding the lien amount, and respondent No.1–Bank shall not impose any restriction on such operation, subject to the aforesaid lien, pending completion of investigation by the competent Investigating Officer. SD/- (SACHIN SHANKAR MAGADUM) JUDGE CA List No.: 1 Sl No.: 59