Bank account funds can be treated as property and frozen during investigation under criminal procedure law.

Money lying in a bank account is property within section 102 CrPC and may be subjected to seizure by a prohibitory order preventing operation of the account. Applying that principle, the Court held that the investigating agency could freeze the bank accounts because the materials suggested the funds were traceable to alleged offences, while the claim of ownership could not be decided at the investigation stage and had to await trial. The seized demand drafts were also retained as part of the investigation, and no ground was shown for their immediate release. The writ petition was therefore unsuccessful and the prohibitory order remained in force.

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Issues: Whether the investigating agency could issue a prohibitory order freezing bank accounts and seize demand drafts under section 102 of the Code of Criminal Procedure, 1973, and whether the petitioners were entitled to withdrawal of the prohibitory order and release of the seized drafts.

Analysis: The claim that the money standing in the bank accounts belonged to the petitioners could not be decided at the investigation stage because the materials collected suggested that the funds were traceable to alleged offences committed by the concerned bank officer. That question was left to be determined at trial on evidence. On the power to freeze accounts, the Court followed the view that money in a bank account is property within the meaning of section 102 of the Code of Criminal Procedure, 1973, and therefore can be subjected to seizure by prohibiting operation of the account. The seized demand drafts also formed part of the investigation and no ground was made out for their immediate release.

Conclusion: The investigating agency was entitled to pass the prohibitory order and retain the seized demand drafts, and the relief sought by the petitioners was not available.

Final Conclusion: The writ petition failed, and the prohibitory order and seizure were left undisturbed.

Ratio Decidendi: Money lying in a bank account is property within section 102 of the Code of Criminal Procedure, 1973, and may be seized in investigation by prohibiting the account holder from operating the account.

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