Municipal bank account freezing stayed because interim restraint would seriously prejudice public functions and essential service delivery.

Freezing a Municipality's bank accounts was treated as unwarranted at the interim stage because it caused serious prejudice and interfered with essential public functions. The court noted that, given the nature of municipal activities, restraint on account operations would impede normal governance and public service delivery. Interim stay was therefore granted against the freezing order, and the bank was directed to allow normal operation of the accounts.

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Issues: Whether the order freezing the Municipality's bank accounts was liable to be stayed.

Analysis: The order freezing the bank accounts was found to cause serious prejudice to the Municipality and to impede essential public functions. In view of the nature of the activities carried on by the Municipality, the restraint on operation of its accounts was considered unwarranted at the interim stage.

Outcome: Interim stay granted against the freezing of the Municipality's bank accounts, and the bank was directed to permit normal operation of the accounts.

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