High Court Directs Partial Defreezing of Bank Account Freezed Due to Cyber Fraud Investigation
Court / Authority
Calcutta High Court
Update / Judgement Date
02 Nov 2026
Date of Publication
04 Nov 2026
Case No.
Case Number MAT 1900 of 2026 with CAN 1 of 2026
Source
WCP News Bulletin
Author
Soumya Gupta — WCP Legal Desk
Reading Time
3 min read
View Count
3
● The appellant operates a Foreign Liquor On Shop and maintains a bank account with Central Bank of India, Rahara Branch.
● On 20 August 2026, an FIR was lodged at Electronic City Police Station, Bengaluru, alleging cyber fraud involving Rs. 1,75,799/-.
● The police informed the bank that Rs. 89,415/- from the complainant's account had entered the appellant's account, leading the bank to freeze the entire account.
● The appellant's account was not listed as one of the four fraudster accounts named in the FIR, and money was received in the ordinary course of business.
● The Single Judge refused an interim order to defreeze the bank account in WPA 29817 of 2026 on 23 October 2026, prompting this appeal.
Issues for Consideration
1. Whether the Calcutta High Court has territorial jurisdiction to entertain the writ petition when the underlying FIR was registered in Bengaluru.
2. Whether the bank was justified in freezing the entire bank account of the appellant when the alleged fraudulent transaction amounted to only Rs. 89,415/- out of a total fraud of Rs. 1,75,799/-.
Submissions of Parties
Petitioner / Appellant
● Received payments in the ordinary course of business against sale of goods without knowing the source account identity.
● Cannot be subjected to penal consequences by freezing the entire account when the account is not named as a fraudster account in the FIR.
Respondent / State
● Raised a preliminary objection on jurisdiction, stating the cause of action arose outside Calcutta due to the FIR in Bengaluru.
● Contended that the bank froze the account under threat of penal consequences based on instructions from the Bengaluru Police.
Court's Observations & Analysis
Re: Issue 1 (Territorial Jurisdiction)
● The appellant and the branch of the bank where the account is maintained are located within the territorial jurisdiction of the Court.
● For a bank, cause of action arises where the branch or registered office is located. Being an authority under Article 12, the Court has jurisdiction to determine the writ petition.
● Held: High Court has jurisdiction to entertain the writ petition. (Para 7)
Re: Issue 2 (Legality of Freezing Entire Bank Account)
● Out of the total alleged fraud of Rs. 1,75,799/-, at most Rs. 89,415/- was traceable to the appellant's account.
● The bank could not have frozen the entire account under police instructions when only a specified sum was involved.
● Held: Entire account freeze is unsustainable; bank directed to defreeze after retaining Rs. 89,415/-. (Paras 8, 10)
Notable Observations
"The bank, therefore, could not have freezed the entire bank account of the appellant under the threat of the letter received from the Electronic City Police Station, Bengaluru dated 24th September, 2026 as a sum of Rs.89,415/- at the highest is involved in respect of the appellant's bank account." (Para 8)
Decision & Directions
● Directed Central Bank of India, Rahara Branch and Regional Head Office to defreeze bank account No. 3743084407 after leaving a balance of Rs. 89,415/-.
● If current balance is less than Rs. 89,415/-, appellant to deposit deficit within 5 working days.
● If current balance exceeds Rs. 89,415/-, appellant permitted to operate account within 3 working days.
● Retained sum of Rs. 89,415/- to be dealt with subject to the outcome of the police investigation.
● Appeal and writ petition disposed of.
Full Judgement / Attachment
Full Judgement
Frequently asked questions about Calcutta High Court
- Where does the Calcutta High Court sit and which areas does it cover?
- The Calcutta High Court sits in Kolkata, with circuit benches at Port Blair and Jalpaiguri. It has jurisdiction over West Bengal and the Andaman and Nicobar Islands. Established on 1 July 1862, it is the oldest High Court in India.
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- What does the Calcutta High Court's Original Side hear?
- As one of the three chartered High Courts, it exercises ordinary original civil jurisdiction over high-value suits arising within Kolkata, including commercial suits and arbitration matters. Its Appellate Side hears writs, appeals from district courts and tax appeals from the ITAT Kolkata Bench.
- How are Calcutta High Court single-judge orders appealed?
- Orders of a single judge on the Original Side are challenged before a Division Bench through an intra-court appeal under the Letters Patent (often listed as an APO). Appellate Side writ orders go by intra-court appeal as well. Final judgements can be challenged by a Special Leave Petition under Article 136, ordinarily within 90 days.
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