Bank accounts frozen in criminal proceedings - Pension Amount Can Not Be Frozen.
Himachal Pradesh High Court Upholds Pension Exemption in Criminal Proceedings, Directs Petitioner to Arrange Pension Credit to Another Account
News Report:
In a significant ruling, the Himachal Pradesh High Court has directed the release of pension funds from a frozen joint bank account belonging to Kewal Krishan and his wife, amidst ongoing criminal proceedings involving alleged fraudulent activities. The petitioner, Kewal Krishan, faced challenges accessing his pension due to the freezing of his bank account by authorities investigating the case linked to unregulated deposit schemes.
The judgment, delivered by Justice Virender Singh on 18th September 2025, stemmed from a petition filed under Sections 438 and 442 of the Bharatiya Nagarik Suraksha Sanhita, 2023. Kewal Krishan, implicated in the criminal case registered under FIR No. 266 of 2023, sought relief to defreeze his account to access his pension credited therein. The account was initially frozen due to its alleged involvement in receiving proceeds of crime amounting to Rs. 1.2 crore.
While the trial court had dismissed Krishan's application to defreeze the account, citing its involvement in criminal activities, the High Court acknowledged the statutory exemptions provided for pension funds. The court emphasized that pension amounts are protected from attachment under Section 11 of the Pension Act, 1871, and Section 60(1)(g) of the Code of Civil Procedure, 1908.
Justice Virender Singh directed the release of Rs. 3,84,956, the amount credited as pension up to 10th July 2025, and any subsequent pension deposits, from the frozen account. The court further instructed Kewal Krishan to coordinate with authorities to redirect his pension credits to a different bank account to ensure continued access to his funds.
The judgment highlights the legal protections for pension funds, ensuring individuals can access their retirement income even when entangled in legal disputes. The court's decision underscores the importance of balancing enforcement of criminal proceedings with safeguarding basic financial rights.
Legal experts view this ruling as reinforcing the statutory safeguards for pensioners, emphasizing the non-attachment of pension funds in court proceedings. The decision also serves as a reminder for individuals involved in legal issues to ensure their pensions are credited to accounts unaffected by legal constraints.
The case traces back to allegations of fraudulent investment schemes where multiple individuals were reportedly deceived into investing significant sums with promises of high returns. Investigations revealed involvement of several accused, including Kewal Krishan, in the receipt and distribution of ill-gotten money.
The Himachal Pradesh High Court's ruling provides a pivotal reference for similar cases, illustrating the judiciary's role in upholding legislative protections for vulnerable sections of society amidst complex legal challenges.
Bottom Line:
Bank accounts frozen in criminal proceedings - Relief under Pension Act, 1871 and CPC Section 60(1)(g) for release of pension amount credited in frozen accounts.
Statutory provision(s): Bharatiya Nagarik Suraksha Sanhita, 2023 Sections 438, 442; Code of Criminal Procedure, 1973 Section 451; Pension Act, 1871 Section 11; Code of Civil Procedure, 1908 Section 60(1)(g)
Kewal Krishan v. State of Himachal Pradesh, (Himachal Pradesh) : Law Finder Doc Id # 2780950
