Case Note & Summary
The petitioner, Sri Narayan Yadav, filed a writ petition under Articles 226 and 227 of the Constitution of India read with Section 482 of the Code of Criminal Procedure, 1973, seeking to quash a notice dated 22.06.2020 issued by the Police Inspector of CEN Police Station, Yadgiri, to the Manager of Axis Bank, Yadgiri, directing the freezing of the petitioner's bank account bearing No.27801010006117 and other linked accounts. The petitioner also sought a direction to the bank to unfreeze the accounts. The notice was issued in connection with an investigation, but no FIR or court order was mentioned. The petitioner argued that the police had no power under Section 102 CrPC to issue such a notice without a court order. The High Court of Karnataka, Kalaburagi Bench, presided over by Justice Mohammad Nawaz, examined the notice and found that it was issued without any statutory authority. The court held that Section 102 CrPC does not empower the police to freeze bank accounts by issuing notices to banks; such action requires an order from a competent court. The court quashed the notice and directed the bank to de-freeze the petitioner's account and linked accounts. The petition was allowed.
Headnote
A) Criminal Procedure Code - Freezing of Bank Accounts - Section 102 CrPC - Police Power - The police have no power under Section 102 CrPC to issue a notice to a bank to freeze a bank account without an order from a competent court. The notice issued by the Police Inspector to Axis Bank to freeze the petitioner's account was held to be without authority of law and liable to be quashed. (Paras 3-4) B) Constitutional Law - Writ Jurisdiction - Article 226 - Maintainability - A writ petition under Article 226 of the Constitution of India is maintainable against a notice issued by the police to freeze a bank account, as it affects the petitioner's right to property and livelihood. The court can quash such notice if it is without legal authority. (Para 4)
Issue of Consideration
Whether the police have the power under Section 102 of the Code of Criminal Procedure, 1973 to issue a notice to a bank to freeze a bank account without any order from a competent court.
Final Decision
The writ petition is allowed. The notice dated 22.06.2020 bearing No.08/CEN/PS/2020 issued by the Police Inspector, CEN Police Station, Yadgiri, to the Manager of Axis Bank, Yadgiri, is quashed. The respondent bank is directed to de-freeze the petitioner's bank account No.278010100061117 and all linked accounts.
Law Points
- Police cannot freeze bank accounts without statutory authority
- Section 102 CrPC does not empower police to issue freezing notices to banks
- Writ petition maintainable under Article 226 for violation of fundamental rights
