Whether it is necessary to issue notice to account holder prior to freezing of bank Account?

As regards the procedure for issuing instructions to freeze the bank accounts, it is noticed that the same has been followed by giving intimation to the concerned Magistrate on 21st November, 2014 as required in terms of Section 102 of the Code. There is nothing in Section 102 which mandates giving of prior notice to the account holder before the seizure of his bank account. The Magistrate after noticing that the principle stated by the Division Bench of the Bombay High Court in the case of Dr. Shashikant D. Karnik v. State of Maharashtra MANU/MH/0213/2007 : (2008) Cri.L.J. 148 (Bom.) has been overruled in terms of the Full Bench judgment of the Bombay High Court in the case of Vinoskumar Ramachandran Valluvar (supra), rightly negatived that contention. The Full Bench of the Bombay High Court has expounded that Section 102 does not require issuance of notice to a person before or simultaneously with the action attaching his bank account. In the case of Adarsh Co-operative Housing Society Limited v. Union of India and Ors. MANU/MH/0932/2011 : (2012) Cri.L.J. 520 (Bom.), the Division Bench of the Bombay High Court once again considered the issue and rejected the argument that prior notice to the account holder was required to be given before seizure of his bank account. It also noted that the bank account need not be only of the Accused but it can be any account creating suspicion about the commission of an offence. The view so taken commends us.

IN THE SUPREME COURT OF INDIA

Criminal Appeal No. 1099 of 2017 

Decided On: 15.12.2017

Teesta Atul Setalvad and Ors. Vs. The State of Gujarat and Ors.

Hon'ble Judges/Coram:

Dipak Misra, C.J.I. and A.M. Khanwilkar, J.

Citation:(2018) 2 SCC 372.
Read full judgment here: Click here

Print Page