M/S Shri Uday Gold Palace v. Union Of India & ORS.
$~2 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 5285/2026 M/S SHRI UDAY GOLD PALACE ....Petitioner Through:
Mr. Mohtisham Ali, Adv.
versus UNION OF INDIA & ORS.
.....Respondents Through:
Mr. Neeraj Dubey, SPC for R1 Mr. Shivang Singh , Mr. Pulin Kumar, Advs. for R2 Mr. Abhishek Baid, Mr. Mohit Kumar Bafna, Mr. Praneet Das and Mr. Ravinder Kumar, Advocates for R4/RBI
CORAM:
HON'BLE MR. JUSTICE JASMEET SINGH
O R D E R
% 29.05.2026 1.
Since there was a holiday on 28.05.2026, the matter was taken up for hearing today.
2.
This is a writ petition filed under Article 226 of the Constitution of India seeking the following prayers :- "a) Issue a writ of Mandamus or any other appropriate writ, order or direction, thereby directing Respondent No. 2 (HDFC Bank Ltd.) to forthwith defreeze the Petitioner's aforesaid bank account and restore full operational access thereto; b) Issue a writ of Mandamus or any other appropriate writ, order or direction calling for the records and quashing the freeze instructions / liens issued by Respondent Nos. 1 & 3 and executed by Respondent No. 2 in respect of the Petitioner's Current Account No. 50200081616977;
c) Issue a Writ in the nature of Certiorari or any other appropriate writ, order or direction, quashing and setting aside The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
the blanket debit freeze and restore to full operational access, in the absence of any information being provided to the Petitioner regarding the same;
d) Issue a Writ in the nature of Certiorari or any other appropriate writ, order or direction, quashing and setting aside the lien of Rs. 22,000/- imposed in Aug 2025 and the three miscellaneous liens aggregating to Rs. 29,308.62/- , in the absence of any information being provided to the Petitioner regarding the same. ..."
3.
For the reasons stated in the petition, issue notice. 4.
Mr. Dubey, learned SPC, Mr. Singh and Mr. Baid, learned counsels, accept notice on behalf of the respondent Nos. 1, 2 and 4, respectively. 5.
My attention has been drawn to email dated 29.01.2026 which reads as under:- The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
6.
A perusal l of the same shows that the as per the direction of MHA lien The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
has been imposed on the following amounts- Rs, 22,000, Rs. 22,000, Rs. 7183.04, Rs. 125.58(totalling to Rs 51,308.62). 7.
However, I am of the view that the freezing of an account is an action entailing serious consequences creating hardships for commercial entities in their smooth functioning and the same might result in commercial death of the petitioner.
8.
Additionally, a coordinate bench of this Court has made categorical observations in paragraph No. 19 of its Order dated 16.01.2026 titled as Malabar Gold and Diamond Limited & Ors. v. Union of India & Ors., W.P.(C) 4198/2025, that actions of blanket freeze in cases where the account holder is neither an accused nor a suspect, are manifestly arbitrary and in clear violation of Article 19(1)(g) and Article 21 of the Constitution of India. 9.
As an indiscriminate blanket freeze has been imposed on the accounts of the petitioner for an allegedly suspicious entry of a meagre amount. Therefore, the action deserves to be set aside. Thus, subject to the lien of Rs. 51,308.62, the petitioner shall be permitted to operate the current account bearing No. 50200081616977 maintained with the respondent No. 2/HDFC Bank.
10.
In view of the order passed, Mr. Ali, learned counsel for the petitioner, does not press the petition for other reliefs and states that the petitioner will pursue its remedy under the SoP.
11.
With these directions, the petition is disposed of. JASMEET SINGH, J MAY 29, 2026/AS The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.