Application to SHO for defreezing of company's current bank account frozen after cyber complaint
Cites the IPC, CrPC or Evidence Act. For matters from 1 July 2024, use the BNS, BNSS or BSA.
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ToDate of application
The Station House Officer,
Police station Police Station,
City in Haryana, Haryana.
Ref: Cyber Complaint No. Cyber complaint number
Sub: Application for defreezing of the current bank account of the Company M/s. Company name
Respected Sir,
I, Managing Director's name, Managing Director of M/s. Company name, which is engaged in the business of Company's line of business (hereinafter referred to as the "Company"), and who looks after the operations of the Company, hereby submit this application seeking your urgent intervention for the defreezing of the Company's current bank account, on the following facts and legal submissions:
1.That the Company's current account bearing No. Current account number maintained with Bank name, Branch name Branch, Bank branch locality, has been frozen. Upon enquiry, the bank informed us that the freezing of the account was occasioned by a complaint lodged by one Complainant's name in respect of a transaction of ₹Disputed transaction amount (₹), which was credited to the Company's account on Date of credit of disputed transaction by M/s. Name of remitting company. The said transaction was made against GST invoice bearing No. GST invoice number dated GST invoice date, for the services rendered by M/s. Name of service provider company. Specifically, the Company had arranged a Malaysia tour package for the end customer, namely Mr. End customer's name, who is a customer of Name of travel company (customer of complainant), for the travel period from Travel period.
2.It is respectfully submitted that neither M/s. Company name nor any of its Directors has any direct or indirect connection with the complainant, Mr. Complainant's name. The Company merely acted as a service provider to Name of company to whom services were provided, and the disputed transaction pertains solely to a legitimate business transaction between the Company and Name of travel company. The Company is wholly unaware of the nature of the dispute between Mr. Complainant's name and Name of travel company (customer of complainant), and is willing to extend full cooperation to the police investigation so as to enable this matter to be resolved expeditiously.
3.That the freezing of the Company's account appears to be a disproportionate action and is not in compliance with the mandatory provisions of Section 102 of CrPC (New Section 106 BNSS). It is well settled in law that a police officer, upon seizing any property (including a bank account), must forthwith report the seizure to the jurisdictional Magistrate, as held in Muktaben M. Mashru vs. State of NCT of Delhi & Anr. [CRL. M.C. 4206/2018 & Crl. M.A. 30311/2018, decided on 29.11.2019]. Non-compliance with this mandatory provision vitiates the entire action of freezing the account. It is respectfully submitted that there is no evidence or indication that any such report was made to the Magistrate in the present case.
4.That the power of the police to freeze a bank account under Section 102 of CrPC (New Section 106 BNSS) is circumscribed by the requirement of a clear nexus between the crime and the account. As emphasised in the landmark judgment of State of Maharashtra vs. Tapas D. Neogy, Citation of State of Maharashtra vs. Tapas D. Neogy, the police may exercise their power of freezing an account only where there is a reasonable connection between the crime under investigation and the account sought to be frozen. In the present case, there is no allegation of fraud, misappropriation or any other criminal act involving the entire account. The dispute pertains only to a specific amount of ₹Disputed amount (₹)/-, and the freezing of the entire account is therefore arbitrary, excessive and beyond the scope of the law.
5.That the operations of the Company have come to a standstill owing to the freezing of the account. The Company is unable to make payments to its vendors, disburse salaries to its employees, or carry out routine transactions essential to the smooth functioning of its business. The freezing of the account, without justification or compliance with the legal provisions, amounts to paralysing the Company's business and jeopardising the livelihood of its employees. As held by the Delhi High Court in K.T. Plantation Pvt. Ltd. vs. State of Karnataka, Citation of K.T. Plantation vs. State of Karnataka, any action of the authorities that disproportionately interferes with a citizen's right to carry on business is violative of Article 19(1)(g) of the Constitution of India. The freezing of the Company's account violates this constitutional right, as it cripples the functioning of the Company's legitimate business operations without any substantial basis or reason.
6.That, in the alternative, if the investigating officer is of the view that the disputed transaction requires further inquiry, the law permits the freezing only of the amount in question and not of the entire bank account. In Rohit Kumar vs. State of NCT of Delhi, Citation of Rohit Kumar vs. State of NCT of Delhi, it was held that the freezing of accounts should be limited to the disputed amounts, since extending the freeze to the entire account would result in excessive hardship and disruption of normal business activities.
It is, therefore, most respectfully prayed that your goodself may kindly:
(a)defreeze the bank account of M/s. Company name so as to enable the Company to carry out its day-to-day business operations, as there is no evidence of any criminality or nexus between the crime and the said account; or
(b)in the alternative, if the ongoing investigation so requires, restrict the freeze to the disputed amount of ₹Disputed amount (₹)/- only, so as to enable the Company to resume its normal business activities without further disruption.
The Company reiterates its willingness to fully cooperate with the ongoing investigation and looks forward to an early and just resolution of the matter.
Thanking you.
Yours sincerely,
Signatory's name
Managing Director
M/s. Company name
Company's address line,
Company's address pin code.