Complete Freezing Violates Fundamental Right to Livelihood; Bank Directed to Allow Access to Legitimate Salary
In a significant ruling, the Madhya Pradesh High Court has ordered the defreezing of the salary account of Anuj Kumar Sharma, a serving personnel of the Special Armed Force, which was frozen by the State Bank of India following directions from the Cyber Cell due to suspicious transactions. The court found the complete freezing of the account to be in violation of the fundamental right to livelihood, as enshrined under Article 21 of the Constitution of India.
The petitioner, Anuj Kumar Sharma, had approached the court after his salary account was restrained without any prior notice, valid reason, or pending criminal case against him. Represented by Advocate Shri Swapnil Sharma, the petitioner argued that the arbitrary freezing of his account deprived him and his family of their sole source of livelihood, leading to severe financial and emotional distress.
The State Bank of India, represented by Advocate Shri Manish Saxena, contended that the freezing was a precautionary measure based on directions from the Cyber Cell regarding ongoing investigations into suspicious transactions. The bank maintained that it acted within its statutory and regulatory obligations.
However, the court, presided by Justice Milind Ramesh Phadke, emphasized that the complete restraint on the account, without evidence of entire account transactions being involved in criminal activity, severely prejudiced the petitioner's fundamental right to livelihood. The court observed that while the bank must comply with lawful directives, depriving an individual of access to legitimate salary solely due to an enquiry into certain transactions was unjust.
In a balanced approach, the court directed the bank to defreeze and allow the operation of the petitioner's account, barring the disputed transaction amounts, which would remain under restraint pending further orders from the investigating agency. The bank was instructed to permit the petitioner to access his remaining funds, including future salary credits, ensuring his and his family's sustenance.
The judgment underscores the judiciary's role in upholding constitutional rights and ensuring fairness, especially when individuals face challenges due to administrative actions.
Bottom line:-
Freezing of salary account of a serving armed force personnel without material evidence showing the involvement of entire account transactions in criminal activity violates the fundamental right to livelihood under Article 21 of the Constitution of India. Partial restraint on suspicious transactions while allowing access to legitimate salary is a balanced approach.
Statutory provision(s): Article 21, Article 14, Article 19 of the Constitution of India
