Parveen And Another vs AU Small Finance Bank And Others

Jagmohan Bansal, J

The petitioners through instant petition under Articles 226/227 of the Constitution of India are seeking directions to respondents to de-freeze their joint current account maintained with respondent No.1-AU Small Finance Bank.

The petitioners claims that they are engaged in the business of crypto currency trading which is legal and regulated by Government of India. Respondent-bank acting on some complaints sent by respondent No.2 has frozen their bank account. The petitioners requested respondent-bank to de-freeze their account and restore full debit operation, however, no action has been taken.

Learned counsel for the petitioners submits that there is no suspicious transaction in the petitioners’ account still their account has been freezed. There is no order of Magistrate in terms of Section 107 of Bharatiya Nagarik Suraksha Sanhita (‘BNSS’), thus, attachment of account is bad in the eye of law. The respondent has attached petitioners’ account without verifying that there is no suspicious transaction in their account. There is no FIR against them. They are not involved in any criminal activity. The respondent has mechanically attached their account.

Learned counsel for respondent No.1-Bank submits that as on date a sum of ₹90,000/- is doubted/suspicious which is lying in petitioners’ account. She concedes that no civil or criminal proceedings qua amount involved are pending against the petitioners. This Court vide order dated 24.02.2026 passed in CWP No.31234 of 2024, Labpreet Kaur v. Union of India and others has already ordered to de-freeze bank account in such circumstances. The bank has no objection if account is de-freezed.

Heard the arguments and perused the record.

From the perusal of record, it is evident that no FIR has been registered against the petitioner. No order of attachment under Section 107 of BNSS has been passed by the Magistrate. The respondent has freezed account whereas a sum of ₹90,000/- has been marked suspicious. Claim of the petitioner is genuine and deserves to be allowed. Accordingly, respondent-Bank is directed to de-freeze petitioners’ account within 7 days from today. As conceded by petitioners, the disputed amount shall not be utilized by them. It will remain freezed. It is made clear that this order shall not legalize any act or omission of the petitioners, if at any stage, they are found involved in the commission of any offence or violation of provision of any law in force.

The petition stands disposed of in above terms.