NARAYAN MAHADEVRAO BIRADAR Vs. COMPETENT AUTHORITY

JUDGEMENT

(1.) This appeal is filed challenging the order dtd. 6/8/2022 passed in Misc. No.845/2022 on the file of the XCI Additional City Civil and Sessions Judge, Bengaluru.

(2.) This appeal is listed for admission. Heard the learned counsel appearing for the appellant and the learned counsel appearing for respondent No.2.

(3.) The factual matrix of the case is that the petitioner is a retired Government Servant. After his retirement, considering his experience, he was appointed as an independent Director in M/s. Kanva Fashions from 28/9/2015 to 15/5/2017 as per Sec. 149(10) of the Companies Act, 2013. During this period, he had rendered his service for improvement of the Kanva Fashions and stepped out of the organization on 15/5/2017 by submitting his resignation to its Managing Director. His resignation was accepted with effect from 15/5/2017. The Assistant Registrar of Companies, also accepted his resignation before the Registrar of Companies and certified the resignation with effect from 15/5/2017. Since, 15/5/2017, the petitioner was totally dis-associated from Kanva Fashions in all its activities. It is also contended that the petitioner had learnt that pursuant to the letter dtd. 5/6/2020 from the Deputy Commissioner, Urban District to the Lead District Manager (Canara Bank), Bengaluru Urban District, he had frozen several bank accounts belonging to one Nanjundaiah and others who were the Directors of Sri Kanva Souhardha Co-operative Credit Limited in connection with the registration of criminal cases against them. In view of the said letter, the Lead District Manager had sent an e-mail on 8/6/2020 to respondent No.2 to freeze the account bearing No.50100125176937 standing in the name of the petitioner. On receipt of the said e-mail, respondent No.2 immediately freezed the account of the petitioner and prevented transactions in the said account and thereby the petitioner has been precluded in operating the said account. It is also contended that he was not a Director elected by the members, but he has appointed as independent Director to render his service for betterment of the Kanva Fashions and he had no role or power or authority in dealing with the day to day affairs of the Kanva Fashions. He was not associated with the policies and administration of day to day function of the Kanva Fashions. He being the retired Government servant has been facing untold miseries and suffering due to freezing of his account in operating his salary account for his day to day sustenance. Hence, he approached respondent No.1 and requested him to defreeze his account maintained with respondent No.2. But respondent No.1 by his letter dtd. 23/6/2021 informed that since his bank account has been freezed under the provisions of the Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004 (KPIDFE Act) and Karnataka Protection of Interest of Depositors in Financial Establishments Rules, 2006 (KPIDFE Rules) hence, he has no power to defreeze the account.