No Suspicious Transaction, No Freeze: P&H High Court Orders Immediate Defreezing of Bank Account in Cyber Alert Case

Case Name: Sajjan Singh v. Union of India & Ors.

Date of Judgment: 18 March 2026

Citation: CWP-4535-2026

Bench: Justice Jagmohan Bansal

Held: The Punjab & Haryana High Court held that in the absence of any suspicious transaction or criminal proceedings against an account holder, authorities have no legal justification to freeze a bank account or impose a lien merely on the basis of automated cyber alerts.

Summary: The petitioner approached the High Court seeking defreezing of his savings bank account and removal of lien of ₹6,71,000 imposed by the bank on the basis of an automated alert from the National Cyber Crime Reporting Portal.

The petitioner contended that he was an agriculturist and had not received any suspicious funds. It was submitted that even the bank’s internal inquiry found no irregular or illegal transaction in his account.

The respondent-bank admitted that no criminal case had been registered against the petitioner and that no suspicious transaction had been detected. It was further conceded that the lien was marked only pursuant to directions from law enforcement authorities.

The Court noted that there was no FIR registered against the petitioner and no order of attachment had been passed under Section 107 of the BNSS. It further observed that in similar circumstances, the Court had previously directed defreezing of bank accounts.

Emphasizing the absence of any incriminating material, the Court held that freezing of a bank account or imposing lien without any evidence of suspicious transaction is unjustified and violative of legal principles.

Decision: The High Court allowed the petition and directed the respondent-bank to defreeze the petitioner’s bank account within three days. The Court clarified that the order would not protect the petitioner if any wrongdoing is subsequently discovered.