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Bombay High Court

PA DAIRY SOLUTIONS PVT. LTD.versusSURYODAY SMALL FINANCE BANK LIMITED

Decided
Disposal
DISPOSED OFF

Holding

The bank must communicate in writing the exact reason and any supporting material for freezing the petitioners' account within 15 days.

Summary

The petitioners, PA Dairy Solutions Pvt. Ltd. and another, filed a writ petition alleging that Suryoday Small Finance Bank had frozen their account without providing any reason. The petitioners sought a written disclosure of the grounds for the freeze to enable them to take appropriate legal steps. The bank contended it would inform the petitioners of the exact reason and any statutory order within 15 days via email. The Court directed the bank to communicate the basis and supporting material for the account freeze in writing within 15 days and declined any extension of time. With these directions, the Court disposed of the writ petition, leaving the petitioners free to pursue any further remedy upon receiving the information.

Issues considered

  • What is the bank's obligation to disclose the reasons and supporting material for freezing a customer's account under law?

Subjects

  • account freezing
  • banking law
  • right to information
  • writ petition
  • procedural fairness

Judgment

TRUPTI
SADANAND
BAMNE
Digitally signed by
                                                          1                  89-wp-3818-2026.odt
TRUPTI SADANAND
BAMNE
Date: 2026.08.28
17:03:42 +0530

                              IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                 ORDINARY ORIGINAL CIVIL JURISDICTION

                                       WRIT PETITION NO. 3818 OF 2026

                      PA Dairy Solutions Pvt. Ltd. & Anr.                … Petitioners
                           versus
                      Suryoday Small Finance Bank Limited & Ors.         … Respondents
                                                        ……
                      Mr.Rajiv Shakdher, Senior Advocate with Mr.Jayesh Rathod and
                      Mr.Karan Khetani i/b. Mr.Jayesh Rathod for the Petitioners.

                      Mr.Raviraj S.Gamare i/b. Mr.Santosh Jawale for Respondent No.1.

                      Mr.Prashant Kamble, AGP for Respondent No.5, the State.
                                                     …...

                                         CORAM : RAVINDRA V. GHUGE, ACJ
                                                     &
                                                 GAUTAM A. ANKHAD, J.


                                          DATE     : 27 AUGUST, 2026

                      P.C.:

                      1.          This matter listed at Serial No. 89, is mentioned out of turn.


                      2.          The learned Senior Advocate representing the Petitioners

                      submits that the Petitioners’ account has been frozen by Respondent No.

                      1, the Bank, without assigning any reason. The Petitioners do not know

                      the reason why the accounts have been frozen. The Petitioners would be


                                                                                       Trupti S. Bamne
                                     2                   89-wp-3818-2026.odt

satisfied if Respondent No. 1, the Bank, communicates the reason for

freezing the accounts at the earliest, in writing, so as to enable the

Petitioners to initiate appropriate steps. If this is done, this Petition can

be disposed off.



3.           The learned Advocate representing Respondent No. 1, the

Bank, submits that within 15 days from today, the Petitioners would be

informed of the exact reason and, if there is any order passed by the

statutory authority, the same would also be communicated, on the

Petitioners’ email address.



4.           We record that, any information and/or material/documents,

which becomes the foundation/cause for freezing the account of the

Petitioners, would be communicated/transmitted in writing to the

Petitioners within 15 days, on the following email ID:

             Email ID: [email protected]



5.           We would not grant any extension of time.



6.           With the above directions, this Writ Petition is disposed off.

                                                                   Trupti S. Bamne
                                    3                  89-wp-3818-2026.odt



7.          If the Petitioners get to know the reason and the material for

freezing their account, liberty is granted to the Petitioners to avail of a

remedy as is permissible in law.




(GAUTAM A. ANKHAD, J.)                   (ACTING CHIEF JUSTICE)




                                                                 Trupti S. Bamne


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