1 wp 771-2010 IN THE HIGH COURT OF JUDICATURE AT BOMBAY CRIMINAL APPELLATE JURISDICTION CRIMINAL WRIT PETITION NO. 771 OF 2011 21st Century Iron and Steels Ltd. & Anr. ...Petitioners vs. State of Maharashtra ...Respondent Mr.A.P. Mundargi, Senior Counsel i/b. Mr.Shaunak Mehta for the Petitioners. Mrs.P.P. Shinde, APP for the State. CORAM : B.H. MARLAPALLE & U.D. SALVI, JJ. JUNE 10, 2011 P.C :- 1 Heard Mr.Mundargi, the learned Senior Counsel with Mr.Mehta for the petitioners. We have perused the affidavit-in-reply filed by Shri Subhash Murlidhar Dhawale, Assistant Police Inspector from the Economic Offences Wing, Unit-III, Crime Branch, Mumbai. 2 CR No.77/2010 came to be registered with the EOW and during the course of investigation into 2 wp 771-2010 said complaint, by its letter dated 17th March, 2011 the Investigating Officer i.e. Senior Inspector of Police freezed the bank accounts of the petitioners with the HDFC Bank, Panjim, Goa, IDBI Bank at KH Road, Bangalore and State Bank of India (Industrial Finance Branch), Residency Road, Bangalore. Hence, this petition. 3 By way of interim order passed by this Court on 23rd March, 2011, an undertaking of the petitioners to the effect that it would maintain at all times the balance of Rs.2.62 crores in account 008655100001496 with the IDBI Bank at Bangalore was accepted and the petitioners were directed to submit a written undertaking within two weeks accordingly. The restriction put on the operation of the other two accounts was removed. 4 Undoubtedly, under Section 102 of Cr.P.C., the Investigating Officer has the power to freeze the bank accounts. However, sub-section 1 of Section 3 wp 771-2010 102 of Cr.P.C. states that such a power could be exercised under the circumstance which would create suspicion of the commission of offence. In the affidavit-in-reply filed by the Assistant Police Inspector, it had been stated that the intention of freezing of accounts is nothing but to secure the claim amount of the complainant and allegedly cheated by the petitioners. 5 Mr.Mundargi, the learned Senior Counsel has placed before us the letter dated 26th May, 2010 addressed by the complainant to the petitioner company and the perusal of the same indicates that there have been business transactions between the parties and as against the total billing amount of about Rs.11,00,000,00/- as on 21st May, 2010, the complainant has received the sum of Rs.9,00,000,00/- and thus, a balance of Rs.2.11 crores is due to the complainant. On the face of this letter which the complainant before the court states that he is aware of the same, in our opinion, there was no 4 wp 771-2010 justifiable reason to take the drastic step to freeze the bank accounts and more so when the business transactions between the parties are continued and it is a running account for supplies and the money receipts. On the basis of this letter, it cannot be accepted that there exist such circumstances which create suspicion of the commission of any offence warranting the Investigating Officer to freeze the bank accounts. 6 Hence, the petition is allowed in terms of prayer clause (a). (U.D. SALVI, J.) (B.H. MARLAPALLE, J.)