Entire Bank Account Cannot Be Frozen For ₹2,253 Disputed Transaction: Calcutta High Court

The Calcutta High Court on 30 September held that an entire bank account cannot be debit-frozen when the disputed transaction under investigation involves only a specific amount, and directed Axis Bank to de-freeze the account while retaining a lien over the disputed amount.

Justice Rishad Medora directed Axis Bank to de-freeze the bank account of Sohel Molla, while permitting it to maintain a lien over Rs. 2,253 pending further directions from the investigating officer. The Bench observed:

“In my view, since the disputed value of the transaction complained of in respect of the petitioner's Bank Account, is only Rs.2,253/-, there is no justifiable reason as to why the entire Bank Account of the petitioner should be frozen.”

Molla, a small businessman running a proprietorship named “ROHAN RETAIL”, approached the High Court seeking de-freezing of his Axis Bank account.

The account was frozen pursuant to a notice issued by the Inspector of Police, Cyber Crime Wing, Tambaram Commissionerate, under Section 106 of the Bharatiya Nagarik Suraksha Sanhita, in connection with a cybercrime investigation. The notice concerned a transaction of Rs. 39,899, of which Rs. 2,253 was disputed, and directed the bank to lien-mark the disputed amount and debit-freeze the account.

Before the High Court, Molla submitted that he had no knowledge of the case and had received no communication from the investigating officer. Despite repeatedly seeking details and requesting de-freezing of his account, he received no response. Also, that Axis Bank informed him that the account could not be unfrozen without a formal revocation order from the competent authority. Therefore, he challenged the freezing of the entire account, contending that the notice only required Rs. 2,253 to be lien-marked.

The bank submitted that it was merely complying with the investigating officer's directions.

The Court noted that while the notice appeared to concern a specific transaction, the entire bank account had been debit-frozen. It found no justification for such a direction and also took note of the investigating officer's failure to respond to Molla's communications or appear before the Court. It observed:

“Having issued a direction to 'Lien Mark' a specific amount in respect of a particular transaction, I am unable to understand or appreciate the necessity behind the direction to debit-freeze the entire Bank Account. Such direction appears to be without any justification whatsoever.”

The Court directed Axis Bank to immediately de-freeze Molla's bank account while maintaining a lien over Rs. 2,253, preventing withdrawal of that amount pending further directions from the investigating officer.

Accordingly, the High Court disposed of the petition.

For Petitioner: Advocate Debapriya Majumder

For Respondents: Advocates Madhu Jana, Vinayak Chaubey, Debtanay Banerjee, D.K Kundu, Arun Basu and Aditi Biswas