Provisional attachment of bank accounts may be relaxed against an equivalent fixed deposit, with automatic revival on default.

Provisional attachment of bank accounts and other property in proceedings concerning alleged proceeds of crime was conditionally relaxed. The respondent was permitted to operate the attached bank accounts to arrange a fixed deposit receipt for the equivalent secured amount, and the arrangement was treated as an undertaking before the Court. The deposit was to be furnished within two weeks, while the provisional attachment would continue to protect the secured sum and would revive automatically on default. The relief balanced temporary access to funds with preservation of the amount for enforcement proceedings.

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Issues: Whether the respondent could be permitted to operate the attached bank accounts and furnish a fixed deposit receipt for the equivalent amount, subject to the continuation and revival of the provisional attachment in case of default.

Analysis: The proceeding concerned provisional attachment of immovable and movable properties in relation to alleged proceeds of crime. The respondent expressed readiness to secure the total amount by way of a fixed deposit receipt for Rs. 33,00,000/- and sought permission to operate the three bank accounts so as to aggregate the amount already lying therein with the balance sum required to make up the total deposit. The arrangement was accepted and treated as an undertaking before the Court. The relief was structured so that the respondent could use the bank funds to create the fixed deposit receipt within two weeks, while the attachment would revive automatically on default and would cease on payment.

Conclusion: The respondent was permitted to operate the bank accounts and furnish a fixed deposit receipt for Rs. 33,00,000/- within two weeks, with the provisional attachment remaining subject to automatic revival on default.

Final Conclusion: The matter was disposed of on a conditional arrangement balancing the respondent's request for access to the bank accounts with protection of the secured amount for the enforcement proceedings.

Ratio Decidendi: A provisional attachment may be conditionally moderated where the secured amount is adequately protected through an enforceable undertaking and equivalent deposit, with automatic revival on default.

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