Bank's continued freezing of a company's accounts was held...

Bank's continued freezing of a company's accounts was held unjustified once the ROC, acting on MCA directions, had unmarked the "management dispute" flag; such ROC marking pertains to statutory compliances under company law and does not fetter ordinary banking operations, hence the bank had no basis to persist with the freeze and was bound to comply with the earlier defreezing direction. Former directors, whose oppression and mismanagement challenge had been dismissed and against which no appellate stay operated, were held to lack locus standi to object to account operations or seek recall/impleadment. The order suspending the defreezing direction and keeping contempt in abeyance, passed without reasons or a prima facie finding, was set aside and the appeal disposed. - HC