Identifiable disputed funds must be secured separately while the bank account is unfrozen.

The petitioner filed a writ petition under Article 226 seeking unfreezing of his bank account.

Relying on Malcolm Murayis & Ors. v. State Bank of India and Others and the guidelines discussed in Archana v. State of Madhya Pradesh and Others, he sought permission to operate the account.

The Court identified five disputed transactions totalling Rs. 4,15,681.29 and considered the prior decisions applicable to the case.

Whether the petitioner’s bank account should be unfrozen while the disputed transaction amount remains secured.

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

Article 226 empowers the High Court to grant appropriate relief where a bank account has been frozen in connection with an investigation.

The Court applied Malcolm Murayis, which directed that disputed amounts be kept in fixed deposits pending action by the competent Magistrate, and Archana, which set out the Standard Operating Procedure dated 10 April 2026 and guidelines for proportionate account freezes and grievance redressal.

The investigating agency is expected to proceed under the relevant provisions of the BNSS or other applicable law; the disputed amount may be released if the competent Magistrate does not pass an order within the specified period.

The Court considered the principles in Malcolm Murayis and Archana applicable mutatis mutandis.

It balanced preservation of the disputed funds with the petitioner’s ability to operate the account by directing that only the identified amount—Rs. 4,15,681.29 relating to five transactions—be kept in a fixed deposit.

It also directed that any further complaint concerning another transaction be dealt with in accordance with law and the SOP.

The bank account was to be unfrozen and the petitioner permitted to operate it, while Rs. 4,15,681.29 was to remain in a fixed deposit.

The amount may be liquidated only upon an order of the competent Judicial Magistrate within three months; failing such an order, the petitioner may withdraw it after giving intimation to the police agency.