MP HC Unfreezes Petitioners’ Bank Accounts, Keeps Rs 50,000 Disputed Amount In Fixed Deposit

The petitioners invoked Article 226 seeking the unfreezing of specified SBI and Union Bank accounts and protection against further restrictions on their operation

They relied on Malcolm Murayis & Ors. v. State Bank of India and Others , W.P. No. 1100 of 2024, and Archana v. State of Madhya Pradesh and Others , which addressed the proportionality of account freezes and the grievance mechanism under the Ministry of Home Affairs’ SOP dated 10 April 2026

The Court identified Rs. 50,000 as the disputed amount in the present case

Under Article 226, the High Court may grant relief against an account freeze in accordance with applicable law.

In Malcolm Murayis , the Court directed preservation of the disputed amount in a fixed deposit, with liquidation dependent on orders of the competent Magistrate within the specified period

Archana applied the SOP dated 10 April 2026 and emphasized that account freezes must be proportionate, that suspected funds should ordinarily be secured by a lien or partial freeze where sufficient, and that grievances should be addressed through the prescribed, time-bound process

The Court applied these decisions mutatis mutandis to the present case

The Court considered the principles in Malcolm Murayis and Archana applicable to the petitioners’ case

It balanced preservation of the identified disputed amount—Rs. 50,000—against the petitioners’ ability to use their accounts, directing that the disputed sum be secured in a fixed deposit while the accounts were unfrozen

The Court also preserved the Bank’s ability to respond lawfully to any further complaint and required the police agency to proceed under the relevant provisions of the BNSS or other applicable law

The disputed amount may be liquidated only upon orders of the competent Judicial Magistrate within three months; failing such orders, the petitioners may withdraw it after giving intimation to the police agency

Any further complaint may be dealt with by the Bank in accordance with law and the SOP