MP HC Unfreezes Man’s Three Bank Accounts, Keeps Rs 4,840 In FD Pending Magistrate’s Order Within 3 Months

The petitioner sought removal of debit freezes on accounts held with State Bank of India, Axis Bank and Jio Payments Bank, as well as restoration of the ability to use his PAN for banking operations.

The Court recorded that the disputed amount reported by the bank was Rs. 4,840.

Although it considered the petition procedurally misconceived because it joined claims relating to three accounts and transactions, it proceeded in view of the petitioner’s difficulty operating the accounts and the impending festivals.

The petitioner relied on Malcolm Murayis & Ors. v. State Bank of India and Others and the later decision in Archana v. State of Madhya Pradesh and Others.

The Court applied the principles in Malcolm Murayis, under which a disputed sum may be kept in a fixed deposit while the account holder is permitted to operate the account, subject to orders of the competent Judicial Magistrate within the stipulated period.

It also applied Archana, which adopted the Ministry of Home Affairs’ Standard Operating Procedure dated 10 April 2026 and emphasized proportionality in account freezes: ordinarily, a restraint should be limited to the suspected amount where that is sufficient to safeguard the investigation, rather than freezing the entire account.

The police are expected to proceed in accordance with the relevant provisions of the BNSS or other applicable law.

The Court found that the disputed amount was specifically identified as Rs. 4,840 and concluded that the principles in Malcolm Murayis and Archana applied mutatis mutandis.

Consistent with the proportionality approach, it directed that only the disputed amount be secured in a fixed deposit and that the accounts otherwise be unfrozen.

This preserved the disputed funds while avoiding continued disruption of the petitioner’s banking operations.

The amount may be liquidated only after orders are passed by the competent Judicial Magistrate within three months; if the police do not proceed in accordance with law within that period, the petitioner may withdraw the fixed-deposit amount after informing the police agency.

The banks remain free to take lawful action if they receive a complaint concerning another transaction.

The operative directions addressed the account freezes; the judgment does not separately record a direction granting the requested PAN-related relief.