THE HON’BLE SRI JUSTICE P.NAVEEN RAO WRIT PETITION No.27036 of 2014 Dated : 14.10.2014 Between:
Shabbir Ali Khan S/o.Late Mr. Shamsheer Ali Khan, Aged 45 yrs, Occu : Businessman, R/o.10-2-289/22, Street No.1, Shanthinagar, Masab Tank, Hyderabad.
.. Petitioner And The Chief Manager, State Bank of India, City Center Branch, Banjara Hills, Hyderabad & 4 others .. Respondents This Court made the following :
THE HON’BLE SRI JUSTICE P.NAVEEN RAO WRIT PETITION No.27036 of 2014 ORDER :
The case of the petitioner is that he has opened nine fixed deposits each to a tune of Rs.5 lakhs in City Center Branch, Agapura Branch and AC Guards Branch of State Bank of India and value of the nine Savings Bank Account Fixed deposits would come to Rs.45 Lakhs. While so, the sister of the petitioner Smt Mariam Begum filed a private complaint on 31.01.2014 before the VI Additional Chief Metropolitan Magistrate, Hyderabad. The VI Additional Chief Metropolitan Magistrate, Hyderabad, vide order dated 15.02.2014 referred the complaint to Humayun Nagar Police Station for investigation and Crime No.47 of 2014 was registered. During the course of investigation, the Inspector of Police, Humayunnagar Police Station, addressed a letter dated 26.04.2014 to the Bank Manager SBI City Central Bank, Banjara Hills, Hyderabad, requesting to provide bank transactions of Account No.20105049802 from January, 2013 till date and all ATM transactions for further investigation and also to freeze the account of the petitioner.
2. Basing on the said letter the accounts of the petitioner were frozen in all the three branches of State Bank of India. After completion of investigation, on 27.05.2014 the police have filed final report under Section 173 of Criminal Procedure Code. On 17.06.2014 the police have addressed a letter to the Chief Branch Manager, State Bank of India, City Center Branch, Banjara Hills, Hyderabad, informing him that investigation was completed and referred as “Lack of Evidence”, and also to cancel the freezing of account of the petitioner. This writ petition is instituted contending that inspite of the police issuing letter to de-freeze the accounts of the petitioner, the respondent-Bank has not taken steps to de-freeze and not allowing the petitioner to operate the accounts and to withdraw the fixed deposits.
3. Sri S. Niranjan Reddy, learned counsel for the petitioner submits that the sister of the petitioner filed a false complaint against the petitioner and others due to personal rivalry in the family. She made vague allegations against the petitioner of forging her signature, misusing of cheque book, misusing of her ATM cards and even alleged selling away of her car. During the course of investigation, the police have found that there was no forgery of her signatures, that the complainant herself admitted issuing of signed cheques to the petitioner and that the person who purchased the car also deposed that the car was sold by the complainant. Therefore, having conducted thorough investigation, the police found that the allegation of forgery was not true and that there was no fraudulent utilisation of the funds of the complainant and accordingly, report is filed by closing the complaint.
4. Learned counsel for the petitioner further contends that in so far as the Bank is concerned, the Bank was right in acting on the request of the police when they initially asked the Bank to freeze the account and to furnish relevant information. But once, the police have further informed the Bank that the investigation was completed and there is no need to freeze the account of the petitioner any more, it is not open for the Bank to continue freezing of the accounts. Such action is without any justification.
5. Learned Standing Counsel for the respondent-Bank submits that Bank is not allowing the petitioner to operate the accounts since the complaint filed by the complainant would show forging of her signatures and misusing of her funds, therefore, the Bank is intending to verify the genuineness of the signatures on the cheque leaves pursuant to which the fixed deposits were opened. It is further contended that as the cheque leaves were handed over to the police and were not returned, the Bank is unable to enquire into the genuineness of the signatures.
6. Learned Standing Counsel fairly submits that so far no complaint is received from any person alleging fraudulent transactions made by the petitioner while obtaining fixed deposit accounts.
7. Prima-facie, as seen from the final report of the police, the police have found that the allegation of forgery of signatures was not true. It is not necessary to go into correctness of such report as it is always open to the complainant to pursue her remedies. But in so far as Bank and the petitioner are concerned admittedly, the Bank has not received any further complaint on the illegalities committed by the account holder warranting the Bank to investigate into the matter before de-freezing the bank accounts and releasing the fixed deposit amounts and that there are no further issues as of now. The only reason for freezing the accounts of the petitioner was because of the letter written by the Humayun Nagar police. But subsequent to the investigation, the police requested to de-freeze the account of the petitioner. Therefore, there is no justification for the bank to continue freezing of the accounts and such action of the bank is arbitrary and not one made in valid exercise of power and is liable to be declared as illegal.
8. However, in order to safeguard the interest of the Bank, against any future claim, the petitioner is directed to execute indemnity bonds in all the three branches of State Bank of India i.e., City Center Branch, Agapura Branch and AC Guards Branch, and on receipt of such indemnity bonds from the petitioner the Bank shall de-freeze the accounts of the petitioner which were freezed in pursuant to the letter dated 26.04.2014 addressed by the Humayun Nagar Police.
9. The writ petition is accordingly disposed of. There shall be no order as to costs. Miscellaneous petitions, if any, pending in this writ petition, shall stand closed.
P.NAVEEN RAO,J 14th October, 2014 Rds