Kerala High Court
Ahalia Finforex Ltd vs Union Of India on 20 June, 2025
Author: N.Nagaresh
Bench: N.Nagaresh
2025:KER:44642
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
FRIDAY, THE 20TH DAY OF JUNE 2025 / 30TH JYAISHTA, 1947
WP(C) NO. 35161 OF 2024
PETITIONER:
AHALIA FINFOREX LTD
AHALIA HOUSE, DOOR NO 66/3600A,
CHITTOOR ROAD, RAJAJI JUNCTION,
ERNAKULUM REPRESENTED BY SENIOR EXECUTIVE-
RECOVERY, MR.JOSEPH MARVEL NOROHNA,
AGED 28 YEARS, S/O AUGUSTINE NOROHNA,
34/467A, KALAVARAPARAMBIL HOUSE, PADIVATTOM,
ERNAKULAM, KERALA., 682024, PIN - 682035.
BY ADVS.
SHRI.NOEL EALIAS
SMT.AKSHARA ANNA PATTIYANI
SMT.VIDHYA T.U.
RESPONDENTS:
1 UNION OF INDIA
REPRESENTED BY ITS SECRETARY,
MINISTRY OF HOME AFFAIRS,
NEW DELHI,, PIN - 110000.
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2 RESERVE BANK OF INDIA
REPRESENTED BY ITS GOVERNOR, HEAD OFFICE,
MUMBAI, MAHARASHTRA,, PIN - 400029.
3 ADDITIONAL DIRECTOR GENERAL OF POLICE
CYBER OPERATIONS, POLICE HEAD QUARTERS,
THIRUVANANTHAPURAM, PIN - 695010.
4 ADDITIONAL DIRECTOR GENERAL OF POLICE
CYBER CRIME POLICE STATION COMMISIONARATE,
VARANASSI, UTTAR PRADESH, PIN - 221002.
5 ADDITIONAL DIRECTOR GENERAL OF POLICE
CYBER CRIME POLICE STATION COMMISIONARATE
JAMNAGAR RD, NEAR RAJKOT URBAN DEVELOPMENT
AUTHORITY, POLICE HEAD QUARTER, RAJKOT,
GUJARAT, PIN - 360001.
6 DEPUTY SUPERINTENDENT OF POLICE
COMMERCIAL CRIME INVESTIGATION WING,
TIRUNNELVELI, TAMIL NADU, PIN - 627007.
7 CYBER CRIME POLICE STATION COMMISIONARATE,
ASSISTANT INSPECTOR GENERAL OF POLICE (AIGP)
O/O THE DIRECTOR GENERAL & INSPECTOR GENERAL OF
POLICE (DG & IGP), NRUPATHUNGA ROAD BENGALURU,
PIN - 560001.
8 CYBER CRIME POLICE STATION COMMISIONARATE
CYBER, MAHARASHTRA,WORLD TRADE CENTRE,
CENTRE -I, BULDING 32ND FLOOR, CUFFEE PARADE,
MUMBAI ., PIN - 400005.
9 PUNJAB POLICE CYBER CRIME DIVISION
STATE CYBER CRIME CELL, PHASE-4 S.A.S
NAGAR.PUNJAB PUNJAB, PIN - 160059.
10 SOUTH INDIAN BANK
REPRESENTED BY ITS BRANCH MANAGER,
ST. JOHN,S ARCADE,NEAR JUBILEE MISSION MEDICAL
COLLEGE, EASTFORT, THRISSUR
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(IFSC CODE :SIBL0000368),
PIN - 680005
BY ADVS.
SMT. ANIMA M., GOVERNMENT PLEADER
SRI.SUNIL SHANKER, STANDING COUNSEL
SMT.VIDYA GANGADHARAN
SMT.ARYA SATHEESH
THIS WRIT PETITION (CIVIL) HAVING BEE FINALLY HEARD
ON 20.06.2025, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
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JUDGMENT
Dated this the 20th day of June, 2025
The writ petition has been filed seeking to direct the
respondents to forthwith defreeze the Bank Account
Nos.0368073000001203, 0368073000001184 and
0368073000001211 of the petitioner.
2. The petitioner is the holder of the said Bank
Accounts with the 10th respondent-Bank. The petitioner states
that the 10 respondent has frozen the petitioner’s Bank
Accounts pursuant to the requisition received from
respondents 3 to 9. The action of the respondents is illegal and
arbitrary, contends the petitioner.
3. The pleadings in the writ petition and
arguments advanced by the counsel on either side would
divulge that action to defreeze the accounts were taken due to
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doubtful transactions perhaps involving cyber crime. The
counsel for the petitioner would urge that the action of the
respondents has abrogated the right of the petitioner protected
under Articles 14, 21 and 300A of the Constitution of India.
4. I have heard the learned Counsel for the
petitioner, the learned Deputy Solicitor General of India
representing the 1st respondent and the learned Standing
Counsel representing the 10th respondent.
5. This Court considered a similar issue in the
judgment in W.P.(C) No.28524/2024. Noting the judgments in
Dr. Sajeer v. Reserve Bank of India [2024 (1) KLT 826],
Nazeer K.T. v. Manager, Federal Bank Limited [2024 KHC
OnLine 768], State of Maharashtra v. Tapas D Neogy [(1999)
7 SCC 685], Teesta Atul Setalvad v. State of Gujarat [(2018)
2 SCC 372] and Shento Varghese v. Julfikar Husen and
others [2024 SCC OnLine SC 895], this Court concurred with
the views in Dr. Sajeer (supra) and Nazeer K.T. (supra) and
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disposed of the writ petition with directions.
6. The facts involved in W.P.(C) No.28524/2024
and this writ petition are similar. In the circumstances, the writ
petition is disposed of with the following directions.
(i) The 10th respondent-Bank is directed
to confine the freezing order of the Bank
Accounts only to the extent of the amount
mentioned in the order / requisition issued by
the police authorities. The above exercise
shall be done forthwith so as to enable the
petitioner to transact through his Accounts
beyond the said limit.
(ii) The police authorities are directed to
inform the Bank as to whether freezing of the
petitioner’s Accounts will be required to be
continued even in the afore manner, and if so,
for what further time.
(iii) On the Bank receiving the afore
information/intimation from the police
authorities, the Bank will adhere with it and
complete necessary action – either continuing
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therein or withdrawing it, as the case may be.
(iv) If, however, no information or
intimation is received by the Bank in terms of
direction (ii) above, the petitioner will be at full
liberty to approach this Court again, for which
purpose all their contentions in the writ
petition are left open and reserved to them, to
impel in future.
(v) The jurisdictional police officer shall
inform the Bank whether the seizure of the
Bank Accounts have been reported to the
jurisdictional Magistrate and if not, the time
limit within which the seizure will be reported.
If no intimation as to the compliance or the
proposal to comply with Section 102 Cr.P.C.
is received by the Bank within two months of
receipt of a copy of this judgment, the Bank
shall lift the debit freeze or remove the lien, as
the case may be, on the petitioner’s Bank
Accounts.
(vi) In order to enable the police to
comply with the above direction, the Bank as
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well as the petitioner shall forthwith serve a
copy of this judgment to the jurisdictional
police officer and retain proof of such service.
Sd/-
N. NAGARESH
JUDGE
ams
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APPENDIX OF WP(C) 35161/2024
PETITIONER EXHIBITS
Exhibit P1 A TRUE COPY OF THE AUTHORIZATION DATED
15.08.2024 PASSED BY THE PETITIONER
COMPANY
Exhibit P2 THE TRUE COPY OF THE MCA REGISTRATION
CERTIFICATE OF THE PETITIONER COMPANY
DATED 29.09.2022 ISSUED BY MINISTRY OF
CORPORATE AFFAIRS
Exhibit P2(a) THE TRUE COPY OF THE NBFC REGISTRATION
UNDER RBI DATED 14.10.2022.
Exhibit P2(b) THE FOREX LICENCE ISSUED BY THE RBI DATED
22.08.2023
Exhibit P3 A TRUE COPY OF THE LETTER FROM THE 10TH
RESPONDENT DATED 24.03.2024 WITH RESPECT
TO THE ACCOUNT NO. 0368073000001195 FOR
AN AMOUNT OF RS. 30,000 AS PER THE
INSTRUCTION OF THE 9TH RESPONDENT.
Exhibit P3(a) A TRUE COPY OF THE LETTER FROM THE 10TH
RESPONDENT DATED 10.05.2024 WITH RESPECT
TO THE ACCOUNT NO. 0368073000001195 FOR
AN AMOUNT OF RS. 25,000 AS PER THE
INSTRUCTION OF THE 5TH RESPONDENT.
Exhibit P3(b) A TRUE COPY OF THE LETTER FROM THE 10TH
RESPONDENT DATED 08.03.2024 WITH RESPECT
TO THE ACCOUNT NO. 0368073000001195 FOR
AN AMOUNT OF RS. 1,00,000 AS PER THE
INSTRUCTION OF THE 5TH RESPONDENT.
Exhibit P3(c) A TRUE COPY OF THE LETTER FROM THE 10TH
RESPONDENT DATED 08.03.2024 WITH RESPECT
TO THE ACCOUNT NO. 0368073000001121 FOR
AN AMOUNT OF RS. 69,400 AS PER THE
INSTRUCTION OF THE 5TH RESPONDENT.
Exhibit P3(d) A TRUE COPY OF THE LETTER FROM THE 10TH
RESPONDENT DATED 29.08.2024 WITH RESPECT
TO THE ACCOUNT NO. 0368073000001178 FOR
AN AMOUNT OF RS. 509 AS PER THE
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INSTRUCTION OF THE 7TH RESPONDENT.
Exhibit P3(e) A TRUE COPY OF THE LETTER FROM THE 10TH
RESPONDENT DATED 04.09.2024 WITH RESPECT
TO THE ACCOUNT NO. 0368073000001184 FOR
AN AMOUNT OF RS. 2,00,000/- AS PER THE
INSTRUCTION OF THE 3RD RESPONDENT.
Exhibit P3(f) A TRUE COPY OF THE LETTER FROM THE 10TH
RESPONDENT DATED 04.09.2024 WITH RESPECT
TO THE ACCOUNT NO. 0368073000001184 FOR
AN AMOUNT OF RS. 2,00,000/- AS PER THE
INSTRUCTION OF THE 3RD RESPONDENT.
Exhibit P3(g) A TRUE COPY OF THE LETTER FROM THE 10TH
RESPONDENT DATED 26.06.2024 WITH RESPECT
TO THE ACCOUNT NO. 0368073000001004 FOR
AN AMOUNT OF RS. 9,999/- AS PER THE
INSTRUCTION OF THE 9TH RESPONDENT.
Exhibit P3(h) A TRUE COPY OF THE LETTER FROM THE 10TH
RESPONDENT DATED 07.06.2024 WITH RESPECT
TO THE ACCOUNT NO. 0368073000001193 FOR
AN AMOUNT OF RS. 50,000/- AS PER THE
INSTRUCTION OF THE 7TH RESPONDENT.
Exhibit P3(i) A TRUE COPY OF THE LETTER FROM THE 10TH
RESPONDENT DATED 04.09.2024 WITH RESPECT
TO THE ACCOUNT NO. 03680730000011203 FOR
AN AMOUNT OF RS. 60,000/- AS PER THE
INSTRUCTION OF THE 3RD RESPONDENT.
Exhibit P3(j) A TRUE COPY OF THE LETTER FROM THE 10TH
RESPONDENT DATED 07.08.2024 WITH RESPECT
TO THE ACCOUNT NO. 0368073000001203 FOR
AN AMOUNT OF RS. 1,00,000/- AS PER THE
INSTRUCTION OF THE 4TH RESPONDENT.
Exhibit P3(k) A TRUE COPY OF THE LETTER FROM THE 10TH
RESPONDENT DATED 12.09.2024 WITH RESPECT
TO THE ACCOUNT NO. 0368073000001173 FOR
AN AMOUNT OF RS. 30,000/- AS PER THE
INSTRUCTION OF THE 7TH RESPONDENT.
Exhibit P3(l) A TRUE COPY OF THE LETTER FROM THE 10TH
RESPONDENT DATED 04.09.2024 WITH RESPECT
TO THE ACCOUNT NO. 0368073000001173 FOR
AN AMOUNT OF RS. 1,10,000/- AS PER THE
INSTRUCTION OF THE 8TH RESPONDENT.
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Exhibit P3(m) A TRUE COPY OF THE LETTER FROM THE 10TH
RESPONDENT DATED 06.08.2024 WITH RESPECT
TO THE ACCOUNT NO. 0368073000001173 FOR
AN AMOUNT OF RS. 42,830/- AS PER THE
INSTRUCTION OF THE 6TH RESPONDENT.
Exhibit P3(n) A TRUE COPY OF THE LETTER FROM THE 10TH
RESPONDENT DATED 05.08.2024 WITH RESPECT
TO THE ACCOUNT NO. 0368073000001173 FOR
AN AMOUNT OF RS. 1,10,000/- AS PER THE
INSTRUCTION OF THE 7TH RESPONDENT.
Exhibit P3(o) A TRUE COPY OF THE LETTER FROM THE 10TH
RESPONDENT DATED 05.08.2024 WITH RESPECT
TO THE ACCOUNT NO. 0368073000001211 FOR
AN AMOUNT OF RS. 76,802/- AS PER THE
INSTRUCTION OF THE 7TH RESPONDENT.
Exhibit P4 THE TRUE COPY OF THE STATEMENTS OF THE
BANK WITH CLOSING BALANCE OF ACCOUNT
BEARING NO.0368073000001203 DATED
04.09.2024
Exhibit P4(a) THE TRUE COPY OF THE STATEMENTS OF THE
BANK WITH CLOSING BALANCE OF ACCOUNT
BEARING NO.0368073000001184 DATED
04.09.2024
Exhibit P4(b) THE TRUE COPY OF THE STATEMENTS OF THE
BANK WITH CLOSING BALANCE OF ACCOUNT
BEARING NO.0368073000001211 DATED
04.09.2024
Exhibit P5 THE TRUE COPY OF THE EMAIL INTIMATION
DATED 05.08.2024 ISSUED BY THE 10TH
RESPONDENT, PERTAINING TO ACCOUNT
NO.0368073000001203.
Exhibit P5(a) THE TRUE COPY OF THE EMAIL INTIMATION
DATED 09.08.2024 ISSUED BY THE 10TH
RESPONDENT PERTAINING TO THE ACCOUNT
NO0368073000001211.
Exhibit P5(b) THE TRUE COPY OF THE EMAIL INTIMATION
DATED 13.08.2024 ISSUED BY THE 10TH
RESPONDENT PERTAINING TO THE ACCOUNT
NO.0368073000001211.
Exhibit P6 A TRUE COPY OF LETTER DATED 23.08.2024
ISSUED BY 10TH RESPONDENT
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Exhibit P7 A TRUE COPY OF THE CONSOLIDATED LIST
PREPARED BY THE PETITIONER WITH RESPECT
TO THE LIEN MARKED AS PER THE INFORMATION
OF THE 10TH RESPONDENT .
Exhibit P8 THE TRUE COPY OF THE COMPUTER GENERATED
ACCOUNT STATEMENT OF THE ACCOUNT NO
BEARING 0368073000001211
Exhibit P8(a) THE TRUE COPY OF THE COMPUTER GENERATED
ACCOUNT STATEMENT OF THE ACCOUNT NO
BEARING 0368073000001195.
Exhibit P9 EMAIL COMMUNICATION BETWEEN THE
PETITIONER AND THE 10TH RESPONDENT ON
24.09.2024
Exhibit P10 REPLY BY THE 10TH RESPONDENT THROUGH E
MAIL DATED 24.09.2024.
RESPONDENT EXHIBITS
Exhibit R10(a) TRUE COPY OF ORDER DATED 16.08.2024 FROM
CYBERCRIME POLICE STATION, RAJKOT CITY,
GUJARAT DIRECTING THE RETURN OF RS.
30,600/-
Exhibit R10(b) TRUE COPY OF ORDER DATED 16.08.2024 FROM
THE 5TH RESPONDENT CYBER CRIME POLICE
STATION , RAJKOT CITY, GUJARAT DIRECTING
THE RETURN OF AN AMOUNT OF RS.69,000/-