A bank account must be unfrozen while the disputed amount remains secured in fixed deposit.

Harshita Seeds sought a writ directing IDBI Bank to unfreeze its current account and permit it to operate the account

The Court recorded that the disputed amount was ₹1,21,100; the account had been frozen in connection with that amount

Relying on Malcolm Murayis and Archana, the petitioner sought relief under Article 226

1. Whether the petitioner’s account should be unfrozen while the disputed amount is separately secured

2. Whether the disputed amount should remain secured pending action by the competent Judicial Magistrate under the applicable law

The Court applied its decisions in Malcolm Murayis & Ors. v. State Bank of India & Ors., W.P. No. 1100 of 2024 (26 April 2024), and Archana v. State of Madhya Pradesh & Ors. (27 July 2026), holding that their directions applied mutatis mutandis

Malcolm Murayis directed that the disputed amount be kept in fixed deposits, subject to orders of the competent Judicial Magistrate within three months, failing which it could be withdrawn under intimation to the cyber-crime agencies

Archana discussed the Ministry of Home Affairs’ SOP dated 10 April 2026 and the principles of proportionality, prompt grievance redressal, and limiting restrictions on bank accounts to what is necessary to secure suspected proceeds of crime

The Court also referred to proceeding under the relevant provisions of the BNSS or other applicable law

The Court considered the present matter covered by Malcolm Murayis and Archana and applied those decisions to the petitioner’s account

It balanced preservation of the disputed ₹1,21,100 against the need to allow the petitioner to use the rest of its account: the disputed sum was to be secured in a fixed deposit, while the account was to be unfrozen

The Court left the police agency to proceed under the applicable law and allowed the fixed deposit to be liquidated if the competent Magistrate did not pass orders within three months

The disputed amount may be liquidated only after orders of the competent Judicial Magistrate; if no such orders are passed within three months, the petitioner may withdraw the amount under intimation to the police agency

The bank may take lawful action regarding any other complaint, having regard to the SOP discussed in Archana

The petition was disposed of accordingly