Ashraf Arangil vs Federal Bank
2025 Latest Caselaw 7723 Ker

Kerala High Court

Ashraf Arangil vs Federal Bank on 7 April, 2025

Author: C.S.Dias

Bench: C.S.Dias

WP(C) NO. 30534 OF 2024                 1




                                                  2025:KER:30356
              IN THE HIGH COURT OF KERALA AT ERNAKULAM

                              PRESENT

                THE HONOURABLE MR.JUSTICE C.S.DIAS

    MONDAY, THE 7TH DAY OF APRIL 2025 / 17TH CHAITHRA, 1947

                      WP(C) NO. 30534 OF 2024


PETITIONER:

          ASHRAF ARANGIL
          AGED 46 YEARS
          S/O KOYA,PROPRIETOR, MIDDLE EAST HOLIDAYS AND
          TRAVELS PVT LTD ARANGIL HOUSE, ARANGIL THAZHAM,
          MADAVOOR, KOZHIKODE, PIN - 673585


          BY ADVS.
          LATHEEF P.K.
          SIDDIQUE C.




RESPONDENTS:

    1     FEDERAL BANK
          REPRESENTED BY THE GENERAL MANAGER CORPORATE OFFICE,
          FEDERAL TOWERS, MARKET RD, PERIYAR NAGAR, ALUVA,
          ERNAKULAM DISTRICT, PIN - 683101

    2     BRANCH MANAGER
          FEDERAL BANK,MAVOOR ROAD BRANCH NO 27/97G, GF, BABY
          MEMORIAL HOSPITAL, MAVOOR RD, ARAYIDATHUPALAM,
          KOZHIKODE, PIN - 673016

    3     SUPERINTENDENT OF POLICE
          CYBER CRIME BRANCH, 6XV+W5P, DARYAGANJ, NEW DELHI,
          DELHI, PIN - 110002

    4     SUPERINTENDENT OF POLICE
          CYBER CRIME BRANCH,KARNATAKA, RACECOURSE, GANDHI
          NAGAR, BENGALURU, KARNATAKA, PIN - 560001

    5     THE NATIONAL CYBER REPORTING CRIME PORTAL
          REP. BY ITS SECRETARY, MINISTRY OF HOME AFFAIRS, NEW
 WP(C) NO. 30534 OF 2024                 2




                                                  2025:KER:30356
            DELHI, PIN - 110001

    6       STATE POLICE CHIEF, KERALA
            POLICE HEAD QUARTERS, VAZHUTHAKKAD,
            THIRUVANANTHAPURAM, PIN - 695014

    7       SHO OF POLICE, CYBER CRIME POLICE STATION, CENTRAL
            CRIME STATION, BUILDING, OLD COMMISSIONER OFFICE,
            BASEERBAGH, HYDERABAD, TELANGANA.


    8.      SHO OF POLICE, CYBER CRIME POLICE STATION, MOHIUDDIN
            NAGAR, SAMASTHIPUR DISTRICT, BIHAR, INDIA 848501.

            ADDL.RESPONDENTS 7 AND 8 ARE IMPLEADED AS PER
            I.A.NO.1/2025 IN W.P.(C) NO.30532/2024.




        THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
07.04.2025, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 WP(C) NO. 30534 OF 2024              3




                                               2025:KER:30356
                          JUDGMENT

The writ petition is filed to direct the 2nd respondent

bank to lift the freezing of the petitioner's bank account

bearing No.14130200023884.

2. The petitioner's case is that, he is the holder of the

above bank account with the 2nd respondent bank. The

said account has been debit freezed by the 2nd respondent

pursuant to the requisition received from the Police. The

action of the 2nd respondent is arbitrary. Hence, the writ

petition.

3. Heard; the learned counsel appearing for the

petitioner, learned Government Pleader and the learned

counsel for the 2nd respondent.

4. The learned counsel for the 2nd respondent

submitted that the petitioner's bank account has been

credit freezed. There is also a lien marked for Rs.4,39,553/-

The said submission is recorded.

5. In considering an identical matter, this Court

in Dr.Sajeer v. Reserve Bank of India [2024 (1) KLT 826]

2025:KER:30356 held as follows:

" a. The respondent Banks arrayed in these cases, are directed to confine the order of freeze against the accounts of the respective petitioners, only to the extent of the amounts mentioned in the order/requisition issued to them by the Police Authorities. This shall be done forthwith, so as to enable the petitioners to deal with their accounts, and transact therein, beyond that limit. b. The respondent - Police Authorities concerned are hereby directed to inform the respective Banks as to whether freezing of accounts of the petitioners in these Writ Petitions will require to be continued even in the afore manner; and if so, for what further time, within a period of eight months from the date of receipt of a copy of this judgment.

c. On the Banks receiving the afore information/intimation from the Police Authorities, they will adhere with it and complete necessary action - either continuing the freeze for such period as mentioned therein; or withdrawing it, as the case may be.

d. If, however, no information or intimation is received by their Banks in terms of directions (b) above, the petitioners or such among them, will be at full liberty to approach this Court again; for which purpose, all their contentions in these Writ Petitions are left open and reserved to them, to impel in future."

2025:KER:30356

6. Subsequently, this Court in Nazeer K.T v.

Manager, Federal Bank Ltd [2024 KHC OnLine 768],

after concurring with the view in Dr.Sajeer's case (supra)

and taking into consideration Section 102 of the Code of

Criminal Procedure (now Section 106 of the Bharatiya

Nagarik Suraksha Sanhita, 2023] and the interpretation of

Section 102 of the Code laid down by the Hon'ble Supreme

Court in State of Maharashtra v. Tapas D Neogy

[(1999) 7 SCC 685], Teesta Atul Setalvad v. State of

Gujarat [(2018) 2 SCC 372] and Shento Varghese v.

Julfikar Husen and others [2024 SCC OnLine SC 895],

has held thus:

"8. The above discussion leads to the conclusion that, while delay in forthwith reporting the seizure to the Magistrate may only be an irregularity, total failure to report the seizure will definitely have a negative impact on the validity of the seizure. In such circumstances, account holders like the petitioner, most of whom are not even made accused in the crimes registered, cannot be made to wait indefinitely hoping that the police may act in tune with S.102 and report the seizure as mandated under Sub-section (3) at some point of time. In that view of the matter, the following direction is issued, in addition to the directions in Dr.Sajeer

2025:KER:30356 (supra).

(i) The Police officer concerned shall inform the banks whether the seizure of the bank account has been reported to the jurisdictional Magistrate and if not, the time limit within which the seizure will be reported. If no intimation as to the compliance or the proposal to comply with the S.102 is informed to bank within one month ofreceipt of a copy of the judgment, the bank shall lift the debit freeze imposed on the petitioner's account.

(ii) In order to enable the police to comply with the above direction, the bank as well as the petitioner shall forthwith serve a copy of this judgment to the officer concerned and retain proof of such service.

7. I am in complete agreement with the views

in Dr.Sajeer and Nazeer K.T cases (supra). The above

principles squarely apply to the facts of the case on hand.

In the above conspectus, I dispose of the writ petition

by passing the following directions:

(i). The 2nd respondent Bank is directed to confine the freezing order of the petitioner's bank account only to the extent of the amount mentioned in the order/requisition issued by the Police Authorities. The above exercise shall be done forthwith, so as to enable the petitioner to transact through his account beyond the said limit;

2025:KER:30356

(ii). The Police Authorities are hereby directed to inform the Bank as to whether freezing of the petitioner's account will be required to be continued even in the afore manner; and if so, for what further time;

(iii) On the Bank receiving the afore information/intimation from the Police Authorities, they will adhere with it and complete necessary action - either continuing the freeze for such period as mentioned therein; or withdrawing it, as the case may be;

(iv). If, however, no information or intimation is received by the Bank in terms of direction (ii) above, the petitioner will be at full liberty to approach this Court again; for which purpose, all his contentions in this Writ Petition are left open and reserved to him, to impel in future;

(v) The jurisdictional police officers shall inform the Bank whether the seizure of the bank account has been reported to the jurisdictional Magistrate and if not, the time limit within which the seizure will be reported. If no intimation as to

2025:KER:30356 the compliance or the proposal to comply with Section 102 of the Cr.P.C. is received by the Bank within two months of receipt of a copy of this judgment, the Bank shall lift the debit freeze or remove the lien, as the case may be, on the petitioner's bank account;

(vi) In order to enable the Police to comply with the above direction, the Bank, as well as the petitioner, shall forthwith serve a copy of this judgment to the jurisdictional officer and retain proof of such service.

The writ petition is ordered accordingly.

C.S.DIAS JUDGE

lsn

2025:KER:30356 APPENDIX OF WP(C) 30534/2024

PETITIONER EXHIBITS

Exhibit P1 THE TRUE COPY OF THE BANK ACCOUNT STATEMENT DATED 02-01-2024

Exhibit P2 A TRUE COPY OF THE REPRESENTATION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT BANK DATED 26-07-2024