Bombay HC in the case of Shri. Girdhari Lal Lath Versus State of Maharashtra

Case Covered:

Shri. Girdhari Lal Lath

Versus

State of Maharashtra

Facts of the Case:

By filing this Petition under Article 226 of the Constitution of India, Petitioner seeks a direction to the Respondents to unfreeze his bank account bearing No.02121000006167 in HDFC Bank, Goregaon (E), Mumbai.

The case of the Petitioner is that M/s. Birla Electricals Ltd. is a public company dealing in the purchase and sale of electrical items. The petitioner was a non-executive director of the said company for the period from 25.07.2002 to 27.08.2014. Thereafter he resigned from the said company vide resignation letter dated 27.08.2014.

Petitioner is holding savings account with Respondent No.5 i.e. HDFC Bank, Goregaon (E), Mumbai, bearing account No.02121000006167. On 02.02.2020, Petitioner had issued a cheque in favour of one Mr Santosh Devrao Thorat for an amount of Rs.14,030/-. However, the Petitioner was surprised when he was informed that the said cheque was dishonoured. When Petitioner inquired with Respondent No.5 as to why the cheque was dishonoured, he was informed that Respondent No.5 had received directions from Respondent Nos.2, 3 and 4 to attach the bank account of the Petitioner.

Observations of the Court:

It is an admitted position, at least no dispute has been raised, that M/s. Birla Electricals Limited is a public company. If that be so, the fact that Petitioner was a director of the said company for the relevant period, though in a non-executive character and stated to have resigned, would have no bearing on the fastening of liability on the Petitioner for the alleged default of M/s. Birla Electricals Limited. In such circumstances, attachment of the bank account of the Petitioner does not appear to be justified and is without any legal sanction.

The Decision of the Court:

In that view of the matter, we direct Respondent Nos.5 and 6 to unfreeze the bank account of the Petitioner bearing No.02121000006167 in HDFC Bank, Goregaon (E), Mumbai forthwith.

Writ Petition is accordingly allowed. However, there shall be no order as to costs.

This order will be digitally signed by the Personal Assistant of this Court. All concerned will act on production by fax or email of a digitally signed copy of this order.

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