SHAMEERA K K Vs. CANARA BANK

JUDGEMENT

(1.) The Writ Petition is filed for a direction to the 1st Respondent Bank to de-freeze the Bank account of the Petitioner, which the 1st Respondent effected at the requisition of the 2nd Respondent - Police Authority.

(2.) The learned Standing Counsel for the 1st Respondent Bank submitted that the Bank had received a requisition for freezing of the account of the Petitioner from the 2nd Respondent for Rs.3,34,000.00 and that thereafter, the Bank received an Order from the Additional Metropolitan Magistrate Court, Jaipur, for the transfer of the said amount to the account of the de facto complainant, and the Bank transferred Rs.3,34,000.00 as per the said Order.

(3.) The 1st Respondent Bank transferred the frozen amount of Rs.3,34,000.00 from the account of the Petitioner on the basis of the aforesaid Order of the Magistrate's Court without informing the Petitioner. It appears that the Magistrate Court also passed an Order without issuing notice to the Petitioner. It is a wrong practice adopted by the Banks that prejudicially affects the rights of the Account Holders. If the Bank had informed the Petitioner before transferring the above amount from the account of the Petitioner in compliance with the Order of the Magistrate's Court, the Petitioner could have worked out his remedies against the Order of the Magistrate's Court before the appropriate forum. If the Banks follow such a practice, the innocent Account Holders may be deprived of their valuable money for a long period or may even lose their money, as the Account Holders have to initiate proceedings for getting back the said amount. Sometimes, the Courts ordering the transfer of the amount would be situated in far-off places, making it practically difficult to recover the amount. Sometimes innocent persons may lose their money on false complaints made by the fraudsters in the Court alleging cybercrime if the Court orders the transfer of the amount without notice to the affected persons. This Court highly deprecates the practice of the Banks transferring money in the Bank accounts without giving notice to the Account Holders on receipt of Orders from the Court for the same. It violates the right of the Account Holders under Article 300A of the Constitution of India.