Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases Companies Law Companies Law + HC Companies Law - 1987 (5) TMI HC This

  • Login
  • Cases Cited
  • Referred In
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

1987 (5) TMI 374 - HC - Companies Law

Issues involved: Freezing of bank account without valid reason, legality of prohibitory order, applicability of Section 102 of the Code of Criminal Procedure.

Summary:
1. The petitioner's bank account was frozen based on an erroneous prohibitory order issued by the Deputy Commissioner of Police, which incorrectly linked her to criminal activities. The court found the order to be illegal and lacking valid reasons, leading to its quashing.

2. The respondents argued that the freezing of the account was justified under Section 102 of the Code of Criminal Procedure, citing precedents where property seizure was allowed. However, the court disagreed, stating that the circumstances did not create suspicion of an offense related to the bank account.

3. Even if Section 102 applied, the respondents failed to follow its requirements, such as informing the magistrate and the petitioner, and providing an opportunity to operate the account. The court emphasized that the funds in the account were not established as "case property," further invalidating the seizure.

4. Due to the above reasons, the court ordered the quashing of the prohibitory order and directed the respondents to pay the petitioner interest on the frozen amount. The petitioner's request for costs was denied, considering the interest awarded during the petition's pendency.

Separate Judgment: No separate judgment was delivered by the judges in this case.

 

 

 

 

Quick Updates:Latest Updates