Kerala High Court
Freed India Private Limited vs Station House Officer on 17 October, 2025
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IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE M.A.ABDUL HAKHIM
FRIDAY, THE 17TH DAY OF OCTOBER 2025 / 25TH ASWINA, 1947
WP(C) NO. 37801 OF 2025
PETITIONER
FREED INDIA PRIVATE LIMITED,
HAVING ITS REGISTERED ADDRESS AT: HD-575,
WEWORK BERGER DELHI ONE, SECTOR 16B, C-001/A2,
GAUTAM BUDDHA NAGAR, NOIDA SECTOR 16,
GAUTAM BUDDHA NAGAR, NOIDA, UTTAR PRADESH
REPRESENTED BY ITS HEAD-LEGAL & COMPLIANCE AND
AUTHORIZED REPRESENTATIVE SMT. KARISHMA ARORA,
PIN - 201301
BY ADVS.
SRI.ENOCH DAVID SIMON JOEL
SRI.S.SREEDEV
SRI.RONY JOSE
SHRI.LEO LUKOSE
SRI.KAROL MATHEWS SEBASTIAN ALENCHERRY
SHRI.DERICK MATHAI SAJI
SHRI.KARAN SCARIA ABRAHAM
SHRI.GUHA MAJUMDER ADRISH ASIM
SHRI.SOMIT KUMAR SINGH
RESPONDENTS
1 STATION HOUSE OFFICER,
CYBER CRIME POLICE STATION, ALAPPUZHA,
PIN - 688001
2 AXIS BANK LTD.,
DLF BRANCH, GURGAON GROUND FLOOR,
CROSSPOINT MALL, GL 005-008, DLF PHASE 4,
GURGAON, HARYANA
REPRESENTED BY ITS MANAGER,
PIN - 122009
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WP(C) No.37801/2025
2
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 17.10.2025, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
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WP(C) No.37801/2025
3
JUDGMENT
Dated this the 17th day of October, 2025
1. The Petitioner, a Private Limited Company, has filed
this Writ Petition challenging the debit freezing of its Bank
account with the Respondent No.2/Bank at the requisition of
the Respondent No.1/Police as per Ext.P5. The case of the
Petitioner is that the Petitioner is not an accused in the
Crime registered by the Police authorities against some
other persons, in which the requisition was made; that the
Petitioner is in no way connected with the said Crime; and
that the debit freezing/lien of the account is in violation of
Sections 106 & 107 of the Bharatiya Nagarik Suraksha
Sanhita, 2023 (BNSS) and Article 300A of the Constitution
of India.
2. I heard the learned Senior Counsel for the Petitioner,
Sri. Joseph Kodianthara, instructed by Advocate Sri. Enoch
David Simon Joel, the learned Senior Government Pleader,
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Smt. K.M. Reshmi for Respondent No.1 and the learned
Counsel for Respondent No.2, Sri. Pradeesh Chacko.
3. Learned Government Pleader submitted that pursuant
to the registration of Ext.P6 FIR, Ext.P5 Requisition was
sent by the Respondent No.1 to the Respondent No.2
seeking the details of the Account
No.'9508SIMFXAAJCT5662P' and seeking a debit freeze
for Rs.15,00,000/- which is a part of the amount of
Rs.61,27,990/- involved in the Crime and that there is no
other requisition for debit freeze/lien. The learned Counsel
for the Respondent No.2/Bank, after getting instructions
from the Bank, confirmed that the Bank has received only
one Requisition for debit freezing of the said account of the
Petitioner and it is from the Respondent No.1 for an amount
of Rs.15,00,000/-, and hence, the Bank has effected debit
freezing of the account of the Petitioner.
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4. This Court considered the same issue in Dr. Sajeer v.
Reserve Bank of India [2024 (1) KLT 826], and this Court issued
the following directions.
"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.
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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 direction (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."
5. Subsequently, this Court considered the same issue
in Nazeer K.T. v. Manager, Federal Bank, Makkaraparamba
Branch [2024 KHC 768].
6. In Nazeer K.T., this Court considered the scope of
Section 102 of the Code of Criminal Procedure, 1973
(corresponding to Section 106 of the BNSS), with
reference to the law laid down by the Hon'ble Supreme
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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) 7
SCC 23], concurred with the view in Dr. Sajeer (supra) and
added the following two more directions.
"(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 Section 102 is informed to Bank within
one month of receipt 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."
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7. In Abhiraj Rajan v. State of Kerala [2025 KHC 1676], this Court
considered the decisions in Dr. Sajeer (supra) and Nazeer K.T.
(supra) and disposed of the Writ Petition, incorporating the
directions contained in both Dr. Sajeer (supra) and Nazeer K.T.
(supra).
8. I find that the Petitioner in this case is similarly placed,
in all respects, with the Petitioners in the aforesaid three
decisions of this Court in Dr. Sajeer (supra), Nazeer K.T. (supra)
and Abhiraj Rajan (supra), and the Petitioner is entitled to get
the same directions in this writ petition.
9. It is contended that there are chances of
uncommunicated or further requisitions for debit freezing/lien
with respect to the same account, and in such case, the
directions of this Court in this judgment may not stand in the
way of the Banks effecting debit freezing/lien. It is
contended that utilization of the frozen/lien amount may be
at the disposal of the jurisdictional Magistrate's Court. I find
force in these submissions, and I find it expedient to include
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two additional directions to the aforesaid directions in Dr.
Sajeer (supra) and Nazeer K.T. (supra).
10. Accordingly, this Writ Petition is disposed of with the
following directions.
i) The Respondent/Bank is directed to confine the order of debit
freeze/lien against the aforesaid account of the Petitioner only to the
extent of Rs.15,00,000/- mentioned in Ext.P5 issued to the Bank by
the Police Authorities and it shall be done forthwith so as to enable
the Petitioner to deal with his account and transact therein beyond
that limit.
ii) The respondent - Police Authority concerned is hereby directed
to inform the Bank as to whether freezing/lien of the account of the
Petitioner will require to be continued even in the aforesaid 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.
iii) On the Bank receiving the aforesaid information / intimation
from the Police Authorities, the Bank will adhere to it and complete
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necessary action - either continuing the freeze/lien 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
the Writ Petitions are left open and reserved to him, to impel in future.
v) The Police Officer concerned 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 the compliance or the proposal to
comply with Section 102 Cr.P.C. (Section 106 BNSS) is informed to
the Bank within one month of receipt of a copy of the judgment, the
Bank shall lift the debit freeze/lien imposed on the Petitioner's
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 officer concerned and retain proof of such service.
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vii) The directions of this Court in this judgment will not stand in the
way of the Bank effecting debit freezing/lien based on the requisitions
communicated in the future to the Bank with respect to the same
account of the Petitioner, and in such case, the Petitioner will be at
liberty to challenge the same.
viii) The frozen/lien amount, if any, lying in the account of the
Petitioner in accordance with the aforementioned directions, shall be
at the disposal of the jurisdictional Magistrate.
Sd/-
M.A.ABDUL HAKHIM
JUDGE
Cak
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APPENDIX OF WP(C) 37801/2025
PETITIONER EXHIBITS
EXHIBIT P1 TRUE COPIES OF THE CERTIFICATE OF
INCORPORATION OF THE PETITIONER DATED
27.05.2020, THE CERTIFICATE OF
INCORPORATION DATED 8.01.2025 PURSUANT
TO THE CHANGE OF NAME FROM THE ERSTWHILE
KAVACH FINANCIAL SERVICES PRIVATE
LIMITED TO FREED INDIA PRIVATE LIMITED,
AND THE CERTIFICATE REFLECTING CHANGE OF
THE PETITIONER'S REGISTERED ADDRESS
DATED 05.03.2025.
EXHIBIT P2 A TRUE COPY OF A SAMPLE DEBT RESOLUTION
AGREEMENT.
EXHIBIT P3 A TRUE COPY OF A SAMPLE SPECIAL PURPOSE
ACCOUNT AGREEMENT AND APPLICATION.
EXHIBIT P4 A TRUE COPY OF THE ESCROW ACCOUNT
ADMINISTRATIVE AGREEMENT AND TERMS OF
SERVICE.
EXHIBIT P5 A TRUE COPY OF THE NOTICE DATED
26.08.2025 FROM THE 1ST RESPONDENT TO
THE 2ND RESPONDENT.
EXHIBIT P6 A TRUE COPY OF THE FIR DATED 26.08.2025
IN CRIME NO. 22/2025 AT THE CYBER CRIME
POLICE STATION.
EXHIBIT P7 A TRUE COPY OF THE TRANSACTION DETAILS
WITH RESPECT TO THE VIRTUAL ID ACCOUNTS
OF THE PETITIONER'S CLIENTS FROM
18.08.2025 TO 19.08.2025.
EXHIBIT P8 TRUE COPY OF THE DETAILS OF THE VIRTUAL
ID ACCOUNTS OF THE PETITIONER AND ITS
CLIENTS INCLUDING THE AMOUNTS LYING
THEREIN.
EXHIBIT P9 TRUE COPY OF ILLUSTRATIVE EMAIL DATED
12.09.2025 FROM THE PETITIONER'S CLIENTS
TO THE PETITIONER.
EXHIBIT P10 TRUE COPY OF ILLUSTRATIVE EMAIL DATED
19.09.2025 FROM THE PETITIONER'S CLIENTS
TO THE PETITIONER.
EXHIBIT P11 TRUE COPY OF ILLUSTRATIVE EMAIL DATED
23.09.2025 FROM THE PETITIONER'S CLIENTS
TO THE PETITIONER.
