High Court Allows Transactions in Frozen Accounts, Suspends Limitation Period

The High Court allowed the Petitioners to transact in their bank accounts by complying with previous orders to deposit the disputed amount or secure it through a Bank Guarantee. The Court clarified that the Petitioners could approach banks with the current order to ensure de-freezing, provided specified amounts were maintained. The Court suspended the limitation period for challenging the Adjudicating Authority's order. The Adjudicating Authority continued the freezing order, pending further High Court orders. A hearing was scheduled for parties to access electronic court records and submit a common compilation, emphasizing the Petitioners' right to de-freeze accounts in line with amended orders.

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Issues:
1. Freezing of bank accounts by Enforcement Directorate without further communication.
2. Grievance regarding the continued freezing of bank accounts despite amended orders.
3. Petitioners' right to approach banks for de-freezing accounts.
4. Suspension of limitation period for challenging Adjudicating Authority's order.
5. Permission for parties to obtain electronic court records and file a common compilation.

Analysis:
The High Court noted that the Petitioners were allowed to transact in their bank accounts by depositing the disputed amount or securing it through a Bank Guarantee, as per previous orders. However, the Petitioners raised concerns that the Enforcement Directorate had not communicated any further limitations on the freezing of their accounts, leading to banks not lifting the freezing order. The Court clarified that since the initial freezing orders were amended and limited, the Petitioners could approach the banks with the current order to ensure de-freezing, provided the specified amounts were maintained through deposit, bank guarantee, or other means. The Court also suspended the limitation period for challenging the Adjudicating Authority's order during the pendency of the writ petitions.

Furthermore, the Adjudicating Authority had continued the freezing order on the Enforcement Directorate's application, subject to the High Court's orders. The Court scheduled a further hearing for the matter, allowing parties to obtain electronic court records for reference and submit a common compilation. The judgment emphasized the Petitioners' right to approach banks for de-freezing their accounts in compliance with the amended orders, ensuring the specified amounts were maintained as directed. The suspension of the limitation period aimed to provide parties with adequate time to address the issues raised in the writ petitions effectively.

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