The Karnataka High Court rules that a bank cannot freeze an entire account when probe agencies seek freezing of only a specified portion of the funds. In the case cited by multiple outlets, the court holds that the bank must follow the scope of the freezing order and block only the amount indicated, rather than halting access to the full account balance. The decision emphasizes that enforcement must be limited to what is ordered, especially where authorities request a partial restriction during investigations.
While the reports focus on the legal principle that partial freezing orders require partial compliance, they do not indicate a dispute over the underlying investigation itself. Instead, the ruling centers on how banks implement restrictions sought by investigation agencies. The court’s view effectively limits banks’ discretion, requiring them to apply freezes proportionately to the amount specified in the order, and not impose broader restrictions that could affect funds beyond the target portion.
