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Judgment
7 paragraphs · 430 wordsT.R. Ravi, J
The petitioner is the holder of accounts with the 1st respondent Bank and his account has been frozen on intimation by Police Authorities. The Court had at the time of admission, issued interim directions to restrict the freezing of the account to the amount which had been subject matter of the dispute as per the intimation received from the Police authorities. However, it is seen that the notice to the Bank does not mention the disputed amount, and seeks a complete debit freeze of all the amounts in credit. In such circumstances, following the decision in Dr.Sajeer v. Reserve Bank of India [ 2023 KHC OnLine 661], this writ petition is disposed of with the following directions;
(a) The respondent Bank is directed to immediately issue a request to the Investigation Authority/Police Authority and seek the amount which is required to be kept in freeze or held in lien in the account of the petitioner. This shall be done by the Bank within a period of one month from the date of receipt of a copy of this judgment.
(b) In the event that the Investigating Officer/Police Authority responds to the afore requisition and mentions a particular amount, as being the sum that is required to be kept frozen or held in lien, then the respondent Bank will confine the freeze/lien to such an extent and allow the petitioner/account holder to deal with his account and transact therein beyond that limit.
(c) On the contrary, if no information is received from the Police Authority/Investigating officer within a period of two months from the date on which the afore requisition was made by the respondent Bank, then they will allow the petitioner/account holder to transact fully in his account, notwithstanding the debit freeze requisition, subject to any further information to be received from the Police Authority/Investigating Officer in future.
(d) As an alternative, if the response from the Police Authority/Investigating Officer is that the entire account be frozen for any reason that is mentioned therein, then the Bank will inform the petitioner/account holder accordingly and continue the freeze in such a manner for a further period of eight months thereafter.
(e) If, after a period of eight months, the requisition made by the Police Authorities - either to a particular sum or the full amount in the account of the account holder - is not withdrawn, then the petitioner/account holder will be at full liberty to approach this Court again; which purpose, all contentions in this writ petition are reserved to him to be impelled in future.