Company not accused : Can it accounts be frozen? High Court decides

Kerala High Court Orders Limited Freeze on Freed India Pvt Ltd's Bank Account, Ensures Compliance with Bharatiya Nagarik Suraksha Sanhita, 2023 and Article 300A of the Constitution 

In a significant judgment passed by the Kerala High Court on October 17, 2025, the debit freeze on the bank account of Freed India Private Limited has been restricted to a sum of Rs. 15,00,000, as requisitioned by the police authorities. The court directed that this amount should be kept under the jurisdictional Magistrate's disposal, ensuring procedural compliance with the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) and Article 300A of the Constitution of India.

The company, which is not an accused in the crime investigated by the police, challenged the debit freeze, arguing it was not connected with the alleged crime. The court emphasized the importance of procedural safeguards, directing police and banks to ensure the freeze only pertains to the specified amount and that communication with the Magistrate is maintained.

The judgment mandates that the bank should lift the debit freeze if no report is submitted to the Magistrate within a month regarding the seizure, highlighting the balance between law enforcement and individual rights. The decision aligns with precedent cases, including Dr. Sajeer v. Reserve Bank of India and Nazeer K.T. v. Manager, Federal Bank, reinforcing procedural integrity in similar matters.

The court's ruling reflects a careful consideration of the legal framework and the rights of entities not directly involved in criminal activities. The additional directives provide a structured procedure for banks and police authorities to follow, ensuring adherence to legal norms and safeguarding the petitioner's interests.

Statutory provision(s): Bharatiya Nagarik Suraksha Sanhita, 2023 Sections 106 & 107, Constitution of India, Article 300A

Freed India Private Limited v. Station House Officer, (Kerala) : Law Finder Doc Id # 2796066