Defreezing of bank accounts refused due to lack of supporting materials; imposed costs set aside and matter remitted

Defreezing of bank accounts was contested on grounds of absence of supporting materials; the High Court found the petitioners reply unsatisfactory and directed filing of a better personal affidavit by the Principal Secretary, with the hearing listed afresh. The Supreme Court set aside the portion of the impugned direction imposing Rs. 5,000 costs, disposed of the special leave petition, and directed further proceedings before the High Court to continue in accordance with law. The decision emphasizes evidentiary sufficiency for defreezing and limits enforcement of nominal costs when procedural deficiencies exist.

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Issues: Whether the component of the High Court's order imposing costs of Rs. 5,000 on the Principal Secretary, State Tax, Lucknow should be set aside.

Analysis: The petition challenged only the portion of the High Court order that imposed monetary costs while granting time to file a further affidavit with better particulars. The Supreme Court examined the record of filings and the High Court's exercise of discretion in imposing costs alongside granting extension for filing further material. Having considered the factual matrix and the relief sought, the Supreme Court construed the appropriate corrective measure as limited to removing the cost imposition while permitting the High Court proceedings to continue and directing further progress in accordance with law.

Conclusion: The component of the High Court order imposing costs of Rs. 5,000 is set aside and the petitioner's challenge to that imposition is upheld, in favour of the Appellant.

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