The Karnataka High Court has allowed the writ petition filed by The International School Bangalore (TISB), an educational institution functioning under the Trust of National Academy for Learning (N.A.F.L.) at NAFL Valley, Whitefield-Sarjapur Road, near Dommasandra Circle, Bengaluru, and has quashed the final notice dated 11.03.2026 issued by the Station House Officer, Cyber Crime Police Station, Varanasi, arising out of Crime No.50/2024 for offences punishable under Section 420 of the Indian Penal Code, 1860 and Section 66(D) of the Information Technology Act, 2000. Justice Sachin Shankar Magadum passed the order in Writ Petition No.9430 of 2026 (GM-POLICE) after hearing learned counsel Sri Amit Deshpande for the petitioner and Sri Avinash B.C. for respondent No.1 – Standard Chartered Bank, while dispensing with notice to respondent No.2.

The petitioner-institution asserted that it is a reputed international school widely known for its high standards in imparting quality education not only in and around Bengaluru but also among the global academic community. It enjoys considerable goodwill and reputation, attracting both national and international students, and is regarded as one of the most sought-after educational institutions. Its commitment to excellence in education has been recognized by several organizations which have conferred upon it awards acknowledging its outstanding contribution in the field of education. The institution was aggrieved by the issuance of a notice by respondent No.2 styled as a “final notice” alleging non-compliance of Section 41A of the Code of Criminal Procedure, 1973. By the said notice, the petitioner was called upon to show cause within five days along with supporting documents and to furnish particulars relating to an alleged transaction dated 15.05.2025 bearing Transaction No. IDFBR52024051500354220 involving a sum of Rs.5,00,000/-. The grievance of the petitioner was that, notwithstanding the submission of a detailed reply and explanation in response to the said notice, the petitioner’s bank account had been frozen in its entirety by respondent No.1 – Standard Chartered Bank, thereby causing severe prejudice to its functioning.

The principal contention of the petitioner was that the amount of Rs.5,00,000/- in question represented legitimate school fees remitted in respect of one Kum. Anvi Lohia. It was submitted that the said amount was transferred by the parent of the student in the ordinary course of payment of fees. However, respondent No.2 had proceeded on the premise that the said parent is allegedly involved in Crime No.50/2024 registered for offences punishable under Section 420 of the Indian Penal Code, 1860 and Section 66(D) of the Information Technology Act, 2000, wherein the alleged proceeds of crime are stated to be to the tune of Rs.69,08,629/-. On such basis, the transaction received by the petitioner had been treated as part of the alleged crime proceeds. The facts of the present case disclose a peculiar and rather disturbing situation, wherein an educational institution has been drawn into the ambit of a criminal investigation solely on the ground that it received a fee payment through an online transaction from a parent who is allegedly involved in a cyber offence. Acting upon such premise, the first respondent-bank had proceeded to freeze the entire account of the educational institution.

The Court recorded that immediately upon receipt of the notice under Section 41A of the Cr.P.C., the petitioner-institution, acting bona fide and without delay, had reversed the said amount of Rs.5,00,000/- to the account from which it was received, and the said reversal is duly substantiated by documentary evidence produced at Annexure-G. The action of respondent No.2 in directing the freezing of the petitioner’s bank account merely on account of an alleged involvement of a parent of a student in a cybercrime registered in the State of Uttar Pradesh “appears to be wholly arbitrary and unreasonable. The petitioner–institution cannot be penalised for having received bona fide fee payments in the ordinary course of its functioning”. The Court was mindful of the need to safeguard the interests of the investigating agency. In that view of the matter, the ends of justice would be met if a lien is marked to the extent of Rs.5,00,000/-, being the amount in question, pending further clarification from respondent No.2 or conclusion of proceedings in Crime No.50/2024.

The Court simultaneously noted that the petitioner is an educational institution responsible for the administration of academic activities, including payment of salaries to teaching and non-teaching staff and meeting day-to-day operational expenses. “Denial of access to its bank account would seriously impair its functioning and adversely affect the interests of students and staff alike. Therefore, permitting the petitioner to operate the account beyond the said amount of Rs.5,00,000/- would strike a just balance between the rights of the petitioner and the interests of the investigating agency”. In the light of the foregoing discussion, the writ petition was allowed. The notice dated 11.03.2026 issued by respondent No.2 stands quashed. The first respondent-bank has been directed to mark a lien on the petitioner’s account to the extent of Rs.5,00,000/- only. The petitioner-institution shall be permitted to operate its bank account in respect of the amount exceeding Rs.5,00,000/- without any restriction. The lien so marked to the extent of Rs.5,00,000/- shall be subject to the outcome of the proceedings in Crime No.50/2024.

Case Title: The International School Bangalore (TISB) v. Standard Chartered Bank & Anr.
Case No.: Writ Petition No. 9430 of 2026 (GM-POLICE)
Date of Order: 27 March 2026
Coram: Hon’ble Mr. Justice Sachin Shankar Magadum

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