MP HC Unfreezes Bank Account, Keeps Disputed ₹8,915 In FD That Petitioner Can Withdraw If No Magistrate Order Within 3 Months

The petitioner sought a writ directing the respondents to unfreeze his bank account.

Relying on Malcolm Murayis v. State Bank of India and Archana v. State of Madhya Pradesh, counsel submitted that the account had been frozen in connection with a disputed transaction.

The Court identified the disputed amount as ₹8,915 and considered the established directions concerning proportional account restraints and the grievance mechanism under the Government’s Standard Operating Procedure (SOP) dated 10 April 2026.

The Court applied the principles in Malcolm Murayis, under which the disputed amount may be placed in a fixed deposit and released if the competent Judicial Magistrate does not pass an order within three months.

It also applied Archana, which, in reliance on the SOP dated 10 April 2026, requires account-freezing measures to be proportionate and ordinarily limited to the suspected amount, with the grievance mechanism and applicable timelines observed.

The investigating agency was expected to proceed under the relevant provisions of the BNSS or other applicable law.

The Court considered Malcolm Murayis and Archana applicable mutatis mutandis.

Applying their approach to the ₹8,915 disputed transaction, it concluded that the amount could be preserved in a fixed deposit without continuing to restrain the petitioner’s entire account.

The Bank could also take lawful action if it received a complaint concerning another transaction, consistently with the SOP.

The disputed 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 informing the Police agency.

The petition was disposed of accordingly.