Atul Kumar Singh vs The State Of Bihar Through Its Chief ...
2025 Latest Caselaw 3017 Patna

Patna High Court

Atul Kumar Singh vs The State Of Bihar Through Its Chief ... on 4 April, 2025

         IN THE HIGH COURT OF JUDICATURE AT PATNA
                   Criminal Writ Jurisdiction Case No.569 of 2024
       Arising Out of PS. Case No.-36 Year-2021 Thana- PATRAKARNAGAR District- Patna
     ======================================================
     Atul Kumar Singh, son of Late Ranjit Singh, Resident of Village- Alavalpur,
     PS- Gaurichak, Dist- Patna

                                                                    ... ... Petitioner/s
                                        Versus
1.   The State of Bihar through Its Chief Secretary, Govt. of Bihar
2.   The Senior Superintendent of Police, Patna, Gandhi Maidan Patna 800001
     Bihar
3.   The HDFC Bank Through Its Zonal Head, Patna 800001 Bihar
4.   The Branch Manager, HDFC Bank Patrakarnagar Branch, Kankarbagh Patna
     Bihar

                                               ... ... Respondent/s
     ======================================================
     Appearance :
     For the Petitioner/s   :       Mrs. Archana Singh, Sr. Advocate
     For the Respondent/s   :       Mr. S.C.16
     ======================================================
     CORAM: HONOURABLE MR. JUSTICE BIBEK CHAUDHURI
                           ORAL JUDGMENT

Date : 04-04-2025 The petitioner has approached this Court invoking

constitutional writ jurisdiction under Article 226 of the

Constitution for the following reliefs:-

"i. For the issuance of appropriate writ

of Mandamus or any other appropriate writ(s) or

order(s) or direction(s) commanding the

Respondent authorities to immediately defreeze

the Account of the Petitioner bearing Account No.

50100252268044 HDFC Bank at Patrakarnagar

Branch, Kankarbagh (Patna) which has been

frozen in Patrakarnagar P.S. Case No. 36/2021 Patna High Court CR. WJC No.569 of 2024 dt.04-04-2025

(Special Case No. 380/2021) pending its

adjudication before the Ld. Special Judge Excise-

I, Patna and thereby allow the Petitioner to

deposit and withdraw the money of the Petitioner

available in his aforesaid bank account.

ii. For any other relief/reliefs as your

Lordships may deem fit and proper."

Facts of the Case

2. Patrakar Nagar P.S. Case No. 36 of 2021 (Special

Case No. 380 of 2021) was registered against the petitioner on 14 th

January 2021 for the offence punishable under Section 30(a)/41 of

the Bihar Prohibition and Excise (Amendment) Act, 2018 on the

basis of a suo moto complaint submitted by the SHO Patrakar

Nagar, Police Station, alleging, inter alia, that on 13th January

2021, while conducting a special raid along with a team of police

personnel, he apprehended one motorcycle at about 10:00 pm in

front of Bhola Community Hall, Chitragupta Nagar, on suspicion.

Two persons, namely, Sanjeev Kumar and Indrajeet Kumar, were

riding the said motorcycle. The two said persons were

interrogated, and they revealed that they were carrying foreign

liquor in their backpack. Police searched the backpack of Sanjeev

Kumar and found 6.525 liters of foreign liquor and some cash

money from the possession of the said Sanjeev Kumar. A sum of Patna High Court CR. WJC No.569 of 2024 dt.04-04-2025

Rs. 36,400/- (thirty-six thousand and four hundred), a small

Samsung phone, and a red colored Hero Honda motorcycle

bearing registration no. BR-01-AJ-3816 were recovered from the

possession of Indrajeet Kumar. On further interrogation, they

allegedly revealed that they, along with the petitioner and one

Vishal Kumar, took three rooms on rent at Mahatma Gandhi

Nagar. In one room, they used to reside, and two other rooms are

used to store a large consignment of liquor, which they supply to

individual customers in a clandestine manner. The police party

also conducted a raid in the tenanted house of the petitioner and

the apprehended persons and recovered 529.2 ltrs. of foreign

liquor from the residential room of the petitioner. Police also

recovered a mobile number and diary from the possession of the

petitioner. All the articles were seized by the police. The entries in

the seized diary revealed huge transactions of money in connection

with the supply of foreign liquor to different customers, in

violation of the Bihar Prohibition and Excise Act. During the

investigation of the case, the investigating officer visited HDFC

Bank at Kankarbagh, Patrakar Nagar Branch for verification of the

passbook of the petitioner having account number

50100252268044. It was learnt that a sum of Rs. 23,99,796.72/-

was available in the said account. On reasonable suspicion that the Patna High Court CR. WJC No.569 of 2024 dt.04-04-2025

petitioner deposited such a huge amount of money in his bank

account beyond the known source of income. It was suspected by

the police that the petitioner earned and accumulated illegal money

through the business of selling foreign liquors in violation of the

provisions contained in the Bihar Prohibition and Excise Act.

Therefore, the I.O. requested the Bank Manager of the HDFC

Bank Patrakar Nagar Branch, in writing, to freeze the said bank

account in the name of the petitioner. The petitioner has

approached this Court to defreeze the account of the petitioner,

which was frozen in connection with the above-mentioned case,

presently pending before the learned Special Judge Excise I, Patna.

It is found from the record that the petitioner previously moved

before the learned Special Judge with the same prayer of

defreezing the bank account, but vide order dated 13th January

2023, the learned Special Judge, Excise, rejected the said

application on the following grounds:

"mHk; i{kksa dks lquk ,oa vfHkys[k dk

voyksdu fd;kA vfHkys[k ds voyksdu ls ;g

irk pyrk gS fd izLrqr okn esa izkFkfedh fcgkj

e|fu"ks/k ,oa mRikn vf/kfu;e ds v/khu ntZ

fd;k x;k gSA izLrqr okn ds izkFkfedh ds

vuqlkj bl okn esa tIr eksVjlkbfdy fuca/ku Patna High Court CR. WJC No.569 of 2024 dt.04-04-2025

la[;k&BR01EZ6669 ls voS/k 'kjkc dh

ifjogu dh ckr dgh tkrh gS rFkk bl okn esa

tIr :i;s dh fo"k; esa ;g dgk tkrk gS fd og

voS/k 'kjkc dh fcdzh ls vftZr jkf'k gSA dsl

nSfudh ds dafMdk&8 esa vfHk;qDr vrqy dqekj

flag dk nks"kLohdkjksfDr c;ku gS ftlesa mlus

voS/k 'kjkc ls dekbZ jkf'k dks ,p0Mh0,Q0lh0

[kkrk ua0 50100252268044 tek djus dh ckr

dgh gSA fcgkj e|fu"ks/k ,oa mRikn vf/kfu;e dh

/kkjk 57¼[k½ ds vuqlkj fcgkj e|fu"ks/k ,oa

mRikn vf/kfu;e ds v/khu n.Muh; fdlh vijk/k

dks djus ds fy, iz;qDr lEifr dks ftyk

dysDVj dks NksM+us dk {ks=kf/kdkj izkIr gSA bl

dkj.k bl U;k;ky; dks [kkrk ua0

50100252268044 dks Defreeze djus dk

{ks=kf/kdkj izkIr ugha gSA vr% vkosnd dk

vkosnu fuokZg ;ksX; ugha gksus ds dkj.k [kkfjt

fd;k tkrk gSA"

3. A counter-affidavit has been filed on behalf of the

respondent no. 2, stating, inter alia, that on the basis of the

materials collected during the course of investigation and

supervision notes issued by the supervising authority, it has been

found that a sum of Rs. 23,99,796.72/- was deposited in HDFC Patna High Court CR. WJC No.569 of 2024 dt.04-04-2025

Bank Account Number 50100252268044 maintained by the

present petitioner. The I.O. had reasonable belief that the said

money deposited in the account of HDFC Bank was the proceeds

of crime by selling foreign liquor and therefore, it was requested to

be frozen. It is also submitted by the respondents that in the above-

mentioned case, police has already filed charge-sheet and trial of

the case will commence soon. Therefore, the respondents have

raised objections against the prayer made by the petitioner.

4. I have heard Ms. Archana Singh, learned senior

counsel and the learned SC 16, perused the materials and record

and duly considered the case. The learned Special Judge, rejected

the prayer for de-freezing the Bank account holding, inter alia, that

any such order being barred by Section 57(B) of the Bihar

Prohibition and Excise Act. It is the absolute jurisdiction of the

District Magistrate to consider the prayer made by the petitioner.

5. Section 57(B) of the said Act runs thus:-

"57(B). Things or premises liable to

be released upon penalty.- (1) Any animal,

vehicle, vessel or other conveyance used for

committing any offence punishable under this

Act that has been seized by any Officer or

Excise Officer may be released by the Patna High Court CR. WJC No.569 of 2024 dt.04-04-2025

Collector upon payment of such penalty as

may be notified by the State Government.

(2). Any premises or part thereof

used for committing any offence punishable

under this Act that has been seized by any

police Officer or Excise Officer may be

released by the Collector upon payment of

such penalty as may be notified by the State

Government.

(3) If the person concerned does not

pay the penalty, then the Collector shall

proceed to confiscate the said animal, vehicle,

vessel or other conveyance and premises as

per section -58."

6. A plain reading of Section 57(B) shows that the above

provision relates to the release of any things, namely, a vehicle,

vessel, or any other conveyance used for committing any offence

punishable under the said Act and seized by the police officer or

Excise Officer upon payment of a penalty by the Collector. Sub-

section 2 of Section 57(B) deals with the release of any premises

that is seized and sealed by the police officer or the excise officer

in connection with the said Act. Sub-Section 3 of Section 57(B) Patna High Court CR. WJC No.569 of 2024 dt.04-04-2025

provides that if the accused fails to pay the penalty amount, the

seized properties may be confiscated.

7. A bank account does not fall under the category of

Section 57(B); therefore, the learned Special Judge committed an

apparent error in passing the impugned order.

8. The learned senior counsel appearing on behalf of the

petitioner refers to an unreported decision passed by the Division

Bench of this Court in CWJC No. 5305 of 2023 (Mohan Kumar

& Anr. Vs. State of Bihar & Ors.) delivered on 18th December

2023. In the said case, a question was raised on behalf of the

respondents on the jurisdictional applicability of Article 226 of the

Constitution where there is efficacious relief available to the

petitioner under Section 457 of the CrPC. The Division Bench of

this Court found that the fact of the freezing of the bank account

arising out of the criminal proceeding was not communicated to

the learned Special Judge, Excise, under Section 102 of the CrPC.

The Division Bench held in paragraphs 09 and 10 of the judgment

as follows:

"9. Learned counsel for the State

submitted that writ petition is not maintainable,

since petitioners have a remedy under Section 457

of Cr.P.C. in so far as getting certain relief in Patna High Court CR. WJC No.569 of 2024 dt.04-04-2025

respect of freezing of their respective account

including fixed deposit receipt. The

aforementioned contention would have been

appreciated provided the Investigating Officer

complied Section 102 to the extent of submission

of report forth with to the Jurisdictional

Magistrate. The same is not forthcoming.

Question of relegating the petitioners to invoke

Section 457 is not warranted in the present case in

view of the fact that Investigating Officer has

failed to comply one of the ingredient under

Section 102 and it will go to the root of the matter

in other words there is a violation of statutory

provision in such circumstances writ Court can

interfere even though petitioners have alternative

remedy.

10. Accordingly, the petitioners have

made out a case so as to interfere with the

impugned action dated 06.06.2022, and it is set

aside and ordered for defreezing of respective

freezed accounts including fixed deposit receipt,

both petitioners shall execute Bank guarantee

before the jurisdictional Court thereby under

taking to produce amount in the Court, as and Patna High Court CR. WJC No.569 of 2024 dt.04-04-2025

when required by the Court and also to the extent

that if any such order is made by the Court

regarding disposal of the same, the same shall be

complied with jointly and severely by them."

9. In the instant case, it is pointed out by the learned

senior counsel on behalf of the petitioner as to whether the I.O.

had complied with the provision of Section 102 of the CrPC

intimating the fact of freezing of the account. Therefore, the issue

arises before this Court for consideration as to whether the writ

petition is maintainable under the facts and circumstances of the

case and, secondly, if the writ petition is maintainable, whether the

frozen account of the petitioner ought to be defreezed.

10. In the instant case, as per the prosecution, a

passbook in respect of Bank Account No. 50100252268044

maintained in HDFC Bank was seized by the police. The I.O.

found more than Rs. 2,300,000/- was lying in the said bank

account. He suspected that the money deposited in the said

account is proceeds of crime.

11. The respondents failed to produce any document that

the I.O. had " reason to believe" that the money deposited in the

account is proceeds of crime. When the I.O. presumably held that

the said money was proceeds of crime, he ought to have submitted Patna High Court CR. WJC No.569 of 2024 dt.04-04-2025

a report containing reasons to believe that the accused/petitioner

deposited proceeds of crime in the bank account. In such a case, he

had the duty to inform or to lodge a complaint before the

Directorate of Enforcement because the allegation relates to using

tainted money by the petitioner, keeping the same in a bank

account for the purpose of suppression of crime and layering of

transactions.

12. For non-compliance of statutory duty cast upon the

I.O., the petitioner has always the right to challenge the action of

the investigating agency by invoking Article 226 of the

Constitution.

13. In the instant case, this Court, therefore, holds that

the writ petition is maintainable not against the judicial order

passed by the learned Special Judge on 13 th January 2023, but

against the improper action of the I.O. by freezing Account

Number 50100252268044 maintained in the name of the

petitioner.

14. The respondents failed to produce even an iota of

evidence from the case diary or other materials to show even

prima facie that the said money was deposited in the bank account

as proceeds of the illegal sale of foreign liquor.

Patna High Court CR. WJC No.569 of 2024 dt.04-04-2025

15. For the reasons stated above, this Court holds that

the direction issued by the I.O. to freeze Bank Account No.

50100252268044 to the Branch Manager of the HDFC Bank,

Patrakar Nagar Branch, was illegal, arbitrary, and is liable to be set

aside. Accordingly, the order of freezing the bank account of the

petitioner passed by the I.O. without any authority of any

competent court is quashed and set aside. The account No.

50100252268044 is defreezed.

16. The writ petition is accordingly allowed on contest.

There shall, however, be no order as to cost.

(Bibek Chaudhuri, J) Suraj Dubey/-

AFR/NAFR                NAFR
CAV DATE                N/A
Uploading Date           10.04.2025
Transmission Date        10.04.2025