If you are stuck in such a situation, here is what to do.

Mr. Alok Sharma, a young professional, found himself in a distressing situation. In mid-2023, he received a call from someone posing as a representative from his bank, Apex Bank, offering to redeem reward points on his credit card. Deceived by the caller, he shared a one-time password (OTP) and was immediately scammed out of ₹30,000. Realizing the fraud, he acted swiftly, blocking his card and filing a complaint on the National Cyber Crime Reporting Portal on the same day.

Within a few weeks, the Cyber Crime unit informed him that they had successfully traced and frozen ₹22,000 of the stolen funds in the scammer’s account, which was held with Pioneer Finance Bank. Despite efforts by the police, the bank did not release the funds. Mr. Sharma then pursued the matter legally. In early 2024, the Metropolitan Magistrate in the city of Navnagar passed a clear order directing Pioneer Finance Bank to release the frozen ₹22,000 to Mr. Sharma. However, several months later, the bank has still not complied, offering excuses that the scammer’s account is frozen and inactive. This has left Mr. Sharma wondering about the next legal steps to enforce the court’s order and recover his money.

Advice in such cases

When a bank fails to comply with a direct court order, it is a serious matter that undermines the judicial process. The aggrieved person has specific legal remedies available to compel the bank to act.

• File an Execution Petition: The most direct course of action is to file an execution petition before the same court that issued the order. This petition asks the court to enforce or “execute” its own decree. The court has powers to ensure its orders are followed, which can include attaching the bank’s assets if necessary.
• Initiate Contempt of Court Proceedings: If the bank’s non-compliance is wilful and deliberate, you can file a petition for civil contempt under the Contempt of Courts Act, 1971. This is a more serious step, as it can lead to penalties for the bank officials responsible, including fines or even imprisonment.
• Complaint to the Banking Ombudsman: Concurrently, you can file a complaint with the RBI’s Banking Ombudsman for deficiency in service. While this does not enforce the court order directly, it puts regulatory pressure on the bank and can result in compensation for the delay and harassment caused.
• Claim Interest and Costs: In your execution petition, you should claim penal interest on the amount for the period of delay, as well as the legal costs incurred in pursuing the enforcement of the order.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Applicable Sections of Law

The legal framework for such cases involves procedural and substantive laws, including the new criminal codes.

• Bharatiya Nyaya Sanhita (BNS), 2023: The initial crime of scamming falls under the BNS. Section 318 of the BNS deals with cheating, and if impersonation was involved, Section 316 (Cheating by impersonation) would be applicable.
• Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023: The procedure for enforcing the court’s order is governed by the BNSS. Chapter XXXV of the BNSS outlines the provisions for the disposal of property and the execution of court orders. Filing an execution petition falls under these provisions.
• The Contempt of Courts Act, 1971: This Act defines and provides for punishment for contempt of court. A bank’s wilful disobedience of a court order constitutes “civil contempt” under Section 2(b) of the Act.
• Reserve Bank of India (RBI) Circulars: RBI has issued various circulars on ‘Limited Liability of a Customer’ in unauthorised electronic banking transactions. These circulars mandate timelines for banks to resolve such issues and can be cited in complaints to the Ombudsman to claim compensation for delays.

If you are the complainant

If you are in Mr. Sharma’s position and the bank is defying a court order, your focus should be on enforcement.

• Engage a Lawyer: Your first step should be to engage a competent lawyer to draft and file an execution petition.
• File the Execution Petition: File the petition in the same court that passed the original order. Attach a certified copy of the order and all communications with the bank showing their non-compliance.
• Consider Contempt Action: If the bank continues to delay or provides frivolous reasons, discuss with your lawyer about initiating contempt proceedings. This often compels the bank to act quickly to avoid penalties.
• Follow up with the RBI Ombudsman: Do not neglect the parallel remedy with the Banking Ombudsman. It is an effective administrative channel to hold the bank accountable for service deficiency.

If you are the victim

If you have just become a victim of a financial scam, immediate and systematic action is crucial.

• Immediate Notification: The moment you realize you’ve been scammed, notify your bank and get your card, account, or any other compromised instrument blocked.
• File a Cyber Crime Complaint: Immediately file a complaint on the National Cyber Crime Reporting Portal (cybercrime.gov.in) or by dialing the helpline number 1930. This creates a time-stamped official record.
• Preserve All Evidence: Keep records of everything – the scammer’s phone number, fraudulent transaction details, SMS alerts, emails, and any communication with the bank or police.
• Follow Up Persistently: Regularly follow up with the police on the investigation and with the bank on the status of your fraud claim.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

How the police behave in such cases

The police, particularly the Cyber Crime cells, play a critical role in the initial stages of such cases. Upon receiving a complaint, their standard procedure is to act quickly to trace the money trail. They contact the nodal officers of the relevant banks (the victim’s bank and the beneficiary bank) to get the scammer’s account details and instruct them to freeze the funds. Their investigation involves collecting evidence, identifying the accused, and filing a charge sheet before the court. However, once the matter is in court and an order for a refund is passed, the police’s direct role in recovery diminishes. The responsibility then shifts to the victim to enforce the court’s order through legal procedures like an execution petition.

FAQs people normally have

What is the most effective legal step to get my money back now?
The most direct and effective step is to file an Execution Petition in the court that issued the refund order. This legally compels the bank to comply.

Should I file a contempt of court case or an execution petition?
You should start with an execution petition. If the bank wilfully disobeys or unreasonably delays compliance even after the execution proceedings begin, you can then initiate a contempt of court case as a stronger measure.

Can I claim compensation for the mental harassment and delay?
Yes. You can claim interest on the delayed amount and legal costs in your execution petition. Additionally, in your complaint to the Banking Ombudsman, you can specifically ask for compensation for the mental agony and deficiency in service caused by the bank’s delay.

Is the bank’s excuse that the “account is frozen” a valid reason to not refund the money?
No, this is generally not a valid excuse to defy a court order. The court’s order to refund the money to the victim supersedes the administrative freeze. The bank is legally bound to follow the court’s directive. The “freeze” was likely initiated to protect the very funds that the court has now ordered to be returned.

What evidence is required?

To enforce the court’s order, the most critical pieces of evidence are:

• A certified copy of the Magistrate’s order directing the bank to refund the money.
• Proof of service of the order on the bank.
• Written communication (emails, letters) sent to the bank requesting compliance with the order.
• Any written responses from the bank where they have refused or given excuses for non-payment.
• The original Cyber Crime complaint or FIR.

How long will the investigation take?

In this specific scenario, the initial investigation phase is already complete, as the court has passed a final order for the refund. The current stage is the “enforcement” or “execution” of that order. An execution petition can take a few months to be resolved, depending on the court’s schedule and the bank’s level of cooperation. If a contempt petition is filed, it may also take a similar amount of time. However, the filing of such petitions often prompts the non-compliant party to act swiftly to avoid further legal trouble.

Advocate Sudhir Rao, Supreme Court of India