Karnataka High Court
Axis Bank Ltd vs The State Of Karnataka By on 11 June, 2025
Author: S.R.Krishna Kumar
Bench: S.R.Krishna Kumar
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NC: 2025:KHC:20194
CRL.P No. 7841 of 2025
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 11TH DAY OF JUNE, 2025
BEFORE
THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR
CRIMINAL PETITION NO.7841 OF 2025 (482(Cr.PC) / 528(BNSS))
BETWEEN:
AXIS BANK LTD.,
A BANKING COMPANY,
CARRYING ON THE BANKING BUSINESS
UNDER THE BANKING REGULATION ACT, 1949,
INCORPORATED UNDER THE COMPANIES ACT, 1956
AND HAVING ITS REGISTERED OFFICE AT 'TRISHUL',
3RD FLOOR, OPP: SAMARTHESHWAR TEMPLE,
LAW GARDEN, ELLIS BRIDGE,
AHMEDABAD - 380 006, GUJARAT.
AND HAVING ONE OF ITS BRANCH OFFICE AT
1) D.NO.26-1-2/5, PADMASREE ARCADE,
GAJUWAKA, VISAKHAPATNAM,
ANDHRA PRADESH-530 026.
Digitally signed by 2) GROUND FLOOR, SHOP NO.73 & 74,
MAHALAKSHMI B M DC 3, RAMBAUG ROAD, ADIPUR,
Location: HIGH KACHCHH, GUJARAT-370 205.
COURT OF
KARNATAKA
REPRESENTED BY ITS BRANCH HEAD,
MR. DAVULURI VENKATA PAVANASANKAR
AGED ABOUT 45 YEARS,
ASLO AT:
S/O. SITARAMA ANJANEYULU,
54-18-39/2A, PLOT NO.1, ROAD NO.1
RADIO COLONY, VIJAYAWADA KRISHNA,
ANDHRA PRADESH-520008.
...PETITIONER
(BY SRI UNNIKRISHNAN M., ADVOCATE)
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CRL.P No. 7841 of 2025
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AND:
1. THE STATE OF KARNATAKA BY
CYBER CRIME POLICE STATION,
CYBER CRIME DIVISION,
CRIMINAL INVESTIGATION DEPARTMENT (CID)
NO.1, CARLTON HOUSE, PALACE ROAD,
(DR.A.KRISHNA RAO ROAD),
BENGALURU-560 001.
REPRESENTED BY SPP
HON'BLE HIGH COURT OF KARNATAKA,
BANGALORE-01.
2. SRI. RAKESH SHETTY
AGED ABOUT 57 YEARS,
S/O. K. SUDHAKAR SHETTY,
RESIDING AT FLAT NO.103,
GREEN WOOD APARTMENT,
S.L. METHAIS ROAD, FALNIR,
MANGALURU CITY-575 001.
...RESPONDENTS
(BY SMT. SOWMYA R., HCGP FOR R-1)
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 CR.PC
(FILED U/S 528 BNSS) PRAYING TO SET ASIDE THE ORDER DATED
30.10.2024 PASSED BY THE HON'BLE 1ST ADDITIONAL CHIEF
JUDICIAL MAGISTRATE, BENGALURU, IN CRIME NO.78/2024 i.e.,
ANNEXURE-C IN TERMS OF WHICH, THE PETITIONERS ARE DIRECT
TO DEFREEZE THE CURRENT ACCOUNTS BEARING A/C.
NO.923020024484749 AND A/C NO.923020014083644 MAINTAINED IN
THE PETITIONERS BANK AND TRANSFER THE SAME TO THE
ACCOUNT OF THE RESPONDENT NO.2.
THIS PETITION COMING ON FOR ADMISSION, THIS DAY,
ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR
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CRL.P No. 7841 of 2025
HC-KAR
ORAL ORDER
In this petition, the petitioner seeks the following reliefs:
"To set-aside the Order, Dated 30.10.2024 passed by the Hon'ble
1st Additional Chief Judicial Magistrate, Bengaluru, in Crime
No.78/2024 i.e., ANNEXURE-'C' in terms of which, the
Petitioners are direct to defreeze the Current accounts bearing
A/c. No.923020024484749 & A/c No.923020014083644
maintained in the Petitioners Bank and transfer the same to the
account of the Respondent No.2."
2. Heard learned counsel for the petitioner and learned
HCGP for respondent No.1 and perused the material on record.
3. In addition to reiterating the various contentions urged
in the memorandum of petition and referring to the material on
record, learned counsel for the petitioner submits that the issue in
controversy involved in the present petition is directly and squarely
covered by the judgment of the Co-ordinate Bench of this Court in
the case of Axis Bank Ltd., Vs. The State of Karnataka and Anr.
- Crl.P.No.1787/2023 dated 14.12.2023, and the present petition
may be disposed of in the above terms.
4. As rightly contended by the learned counsel for the
petitioner, the issue in controversy in the present petition is covered
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by the judgment of this Court in the case of Axis Bank Ltd. supra,
wherein it is held as under:
"The Petitioner which is a Financial Institution
is before this Court challenging the order passed by
1st Additional Chief Metropolitan Magistrate on an
application filed under Sections 451 and 457 of
Cr.P.C. by the complainant/respondent No.2 directing
the petitioner-Bank to defreeze the amount
belonging to the accused and transfer the said
amount to the bank account of the
complainants/respondent No.2.
2. The petitioner's concern is that the order
passed by the Jurisdictional Magistrate cannot be
executed because it surpasses the specified release
amount, and numerous courts across the Country
have issued directives to the investigating agencies
to unfreeze the bank accounts of the accused
therein.
3. Learned Special Public Prosecutor on
instructions would suggest that the matter may be
remanded to the Jurisdictional Courts to consider the
application filed under Sections 451 and 457 of
Cr.P.C. afresh, by affording an opportunity of
hearing to the petitioner.
4. Admittedly, multiple cases are registered
against the accused herein within the State and
across the country and there are multiple orders
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passed by the Jurisdictional Magistrates directing
the petitioner to unfreeze the account of the
accused and transfer the amount to the bank account
of the complainants. The passing of multiple orders
has caused difficulty to the petitioner/bank in
executing the said order, since the amount
ordered to be released in some accounts
exceeds the amount available in the subject accounts
of the accused. Therefore, the learned Magistrate
before passing an order directing the petitioner to
unfreeze and transfer the amount to the accounts of
the complainants, is required to hear the petitioner.
Accordingly, I pass the following:
ORDER
i. Criminal Petition is allowed.
ii. The order dated 26.11.2021 passed by
the 1st Additional Chief Metropolitan
Magistrate, Bengaluru in Cr.No.452/2021 is
hereby set aside.
iii. Matter is remanded to 1st Additional
Chief Metropolitan Magistrate, Bengaluru to
reconsider the application filed under Sections
451 and 457 of Cr.P.C. afresh, after giving
the opportunity of hearing to the petitioner.
5. Till the application is disposed of, the
petitioner/bank is restrained from releasing the
money in favour of any person from the subject
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account."
5. In view of the above, the petition is disposed of in
terms of the order passed in the case of Axis Bank Ltd. supra.
6. Accordingly, I pass the following:
ORDER
i. The petition is hereby allowed.
ii. The order dated 30.10.2024 passed
by the I Additional Chief Judicial Magistrate,
Bengaluru in Crime No.78/2024, is hereby
set aside.
iii. Matter is remanded to I Additional
Chief Judicial Magistrate, Bengaluru to
reconsider the application filed under
Sections 451 and 457 of Cr.P.C. afresh,
after giving the opportunity of hearing to
the petitioner.
iv. Till the application is disposed of,
the petitioner / bank is restrained from
releasing the money in favour of any
person from the subject account.
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Subject to the aforesaid observations and directions, the
petition stands disposed of.
Sd/-
(S.R.KRISHNA KUMAR)
JUDGE
MBM
