MONAVIE INDIA ENTERPRISES PRIVATE LIMITED Vs. STATE OF KERALA; DIRECTOR GENERAL OF POLICE; P A VALSAN; MADHU NAIR

JUDGEMENT

(1.) This writ petition is filed by a Private Limited Company (hereinafter referred to as the Company), alleged to have been engaged in direct/indirect/multilevel marketing, challenging freezing of their banking account and also seeking for a direction not to interfere with lawful and legitimate business.

(2.) A crime has been registered against the petitioner on an information given by the Superintendent of Police, EOW III, CB CID, Kozhikode on 19/09/2012 alleging offences under Sections 4, 5 and 6 of Prize Chits and Money Circulation Scheme (Banning) Act, 1978 (for short, the "Act"). The Investigating Officer, in connection with the above crime, ordered freezing of the account of the Company maintained with HSBC Bank, Ernakulam. This order appears to have been issued purportedly invoking the power under Section 102 of Criminal Procedure Code.

(3.) Though, there is no direct challenge regarding registration of FIR against the Company, the learned counsel for the petitioner, Shri George Poonthottam addressed extensively to point out that no offence is made out against the Company. Therefore, it is argued that the freezing of the account is liable to be interfered by this Court and to permit the Company to operate the account. The learned counsel explained the nature of the business of the Company and submits that a lawful business cannot be interfered by registration of the crime under Sections 4,5 and 6 of the Act. The learned counsel also referred to the Government Order dated 12/09/2011 issuing guidelines to regulate sale of goods and services known as direct selling. The essential argument is that the right to conduct business in lawful manner has been infringed by the respondents.