Court Directs Disputed Amounts to be Placed in Fixed Deposits Pending Judicial Orders
In a significant judgment, the Madhya Pradesh High Court at Indore, presided over by Justice Subodh Abhyankar, has ordered the unfreezing of bank accounts belonging to Dekain Perfect Tech Ksolution Private Limited, which were previously frozen due to allegations of involvement in cyber fraud. The judgment, delivered on June 22, 2026, mandates that disputed amounts be placed in fixed deposits and only liquidated upon receiving orders from a competent Judicial Magistrate.
The writ petition, numbered 18579 of 2026, was filed by Dekain Perfect Tech Ksolution Private Limited against IDFC First Bank and others, invoking Article 226 of the Constitution of India. Represented by Advocate Shri Harshwardhan Sharma, the petitioner company sought the removal of the lien on its bank account and the cessation of any hindrances in its lawful operations.
The court's decision aligns with a previous ruling in the case of Malcolm Murayis v. State Bank of India, where similar relief was granted under comparable circumstances. Justice Abhyankar noted that the petitioner’s case was adequately covered by the principles established in the Malcolm Murayis case, which dealt with accounts frozen on the basis of cyber fraud allegations without due process.
According to the order, the bank must keep the contested sums in fixed deposits. These deposits can only be liquidated following a decision by a Judicial Magistrate within three months. If the investigating agencies fail to proceed within this timeframe, the petitioner is permitted to withdraw the amounts, after notifying the relevant agencies.
This decision underscores the court's emphasis on balancing the need to investigate alleged cyber frauds with the rights of businesses to operate without undue interference. It also highlights the court's insistence on proper procedural conduct by investigating agencies, in accordance with Section 102 of the Criminal Procedure Code, or applicable laws under the Bharatiya Nagarik Suraksha Sanhita, 2023.
Legal experts view this judgment as a reinforcement of judicial oversight over investigatory actions that impact commercial operations. It also serves as a precedent for future cases where businesses face operational disruptions due to investigatory holds on their financial accounts.
Bottom line:-
Bank accounts frozen due to alleged involvement in cyber fraud can be unfrozen subject to certain conditions, including depositing disputed amounts in fixed deposits until the conclusion of legal proceedings.
Statutory provision(s): Article 226 of the Constitution of India, Section 102 of the Criminal Procedure Code
