Ravindra Pratap Singh Vs Reserve Bank of India (Calcutta High Court)
Calcutta High Court held that marking of company with ‘management dispute’ by ROC has nothing to do with transaction of the company with its banker. Hence, freezing of bank account based on the same is unlawful.
Facts- The present appeals arise out of a common order passed in connection with three different applications. The backdrop of the case is that an application was filed under Article 226 of the Constitution of India by the present appellant against an order whereby the bank accounts of the appellant no.2-Company, of which the appellant no.1 is the director, was frozen by the respondent no.2, that is the Axis Bank Limited.
Upon the said decision being taken by the Bank, the appellants moved the banking Ombudsman of the Reserve Bank of India (RBI), the first respondent herein. The Ombudsman turned down the challenge on the ground that another similar proceeding on the same issue was pending before another competent forum.
Challenging the action of the Bank as well as the Ombudsman’s decision, the writ petition was taken out, which culminated in an order dated April 9, 2025, whereby a learned Single Judge of this Court disposed of the writ petition by directing the Axis Bank to defreeze the Bank Account and the Demat Account of the writ petitioner/appellant no. 2.
