Unfreeze the account while securing the disputed amount in a fixed deposit.

The petitioner sought a writ directing Axis Bank to unfreeze its current account and permit it to operate the account

Relying on Malcolm Murayis & Ors. v. State Bank of India & Ors. and Archana v. State of Madhya Pradesh & Ors. , the petitioner contended that the principles in those decisions applied to its case

The Court identified Rs. 1,95,000 as the disputed amount and considered whether that sum could be secured separately while allowing the petitioner to operate its account

1. Whether the petitioner’s account should remain frozen, or be unfrozen while the disputed amount is secured separately

2. Whether the disputed amount should be retained pending action by the competent Judicial Magistrate under the applicable law

Under Article 226 of the Constitution, the High Court may grant appropriate relief concerning a bank-account freeze.

The Court applied the principles in Malcolm Murayis , which permitted a disputed amount to be kept in fixed deposit pending lawful action by the competent Magistrate, and Archana , which emphasized proportionality in account freezes and the need to follow the Government’s Standard Operating Procedure dated 10 April 2026 for cyber-fraud-related account holds

The Court also directed that the police agency proceed under the relevant provisions of the BNSS or other applicable law within the specified period

The Court held that the reasoning in Malcolm Murayis and Archana applied mutatis mutandis

It balanced preservation of the disputed funds against the petitioner’s ability to operate its account by directing that Rs. 1,95,000 be placed in a fixed deposit while the account itself was unfrozen.

It also provided for further action if another complaint concerning a different transaction was received, subject to the SOP and applicable law

Axis Bank was directed to unfreeze the petitioner’s account and permit its operation, while placing Rs. 1,95,000 in a fixed deposit.

That amount may be liquidated only after orders of the competent Judicial Magistrate within three months; failing such orders, the petitioner may withdraw it after informing the police agency.

The Bank may take action regarding any further complaint in accordance with law and the SOP