MP HC Unfreezes Customer’s Bank Account, Keeps ₹42,998 Disputed Sum in Fixed Deposit

The petitioner sought de-freezing of his Central Bank account, with a lien or fixed deposit limited to the disputed transactions, which he identified as totalling ₹42,998.

He relied on Malcolm Murayis & Ors. v. State Bank of India & Ors., which directed that disputed amounts be secured in fixed deposits pending action by the competent Magistrate, and on Archana v. State of Madhya Pradesh & Ors., which set out the 10 April 2026 Standard Operating Procedure (SOP) and guidelines for grievances concerning cybercrime-related account freezes.

Article 226 of the Constitution empowers the High Court to grant appropriate relief where the restraint on a bank account warrants judicial intervention.

The Court applied the principles in Malcolm Murayis, under which the disputed amount may be secured in a fixed deposit, subject to the competent Magistrate acting within the specified period.

It also adopted, mutatis mutandis, the Archana guidelines and the 10 April 2026 SOP, which require proportionate, legally compliant action in response to cybercrime complaints and recognize the grievance-redressal mechanism for account holders.

The Court directed that the police proceed under the relevant provisions of the BNSS or other applicable law.

The Court considered the relief sought alongside the principles in Malcolm Murayis and the SOP-based approach in Archana.

It concluded that the disputed amount could be safeguarded without continuing to freeze the petitioner’s entire account.

Accordingly, it directed that ₹42,998 be placed in a fixed deposit while the account was unfrozen.

It also preserved the Bank’s ability to take lawful action if another complaint concerning a different transaction was received, subject to the SOP.

The Bank was directed to unfreeze the petitioner’s account and permit him to operate it, while keeping ₹42,998 in a fixed deposit.

That amount may be liquidated only upon an order of the competent Judicial Magistrate within three months; failing such an order, the petitioner may withdraw the fixed-deposit amount after informing the police agency.

The Bank may take appropriate action under the SOP if it receives a complaint concerning another transaction.