If you are stuck in such a situation, here is what to do.
Mr. Verma, a software engineer residing in Raipur, found himself in a distressing situation. A baseless case was filed against him in Lucknow, which caused him significant mental and financial hardship. After a lengthy process, the case was finally settled and officially closed by the court. However, his relief was short-lived when he discovered that a lien, placed on his savings account during the legal proceedings, was still active. This prevented him from accessing his own funds. Living in a different city, Mr. Verma was anxious about how he could obtain the necessary No Objection Certificate (NOC) from the Lucknow court to remove the lien without having to travel back and forth. He wondered if there was a way to resolve this through online means, email, or post.
Advice in such cases
A lien or an attachment on a bank account is a legal tool used by courts to freeze assets during a pending case, ensuring that funds are available for a potential judgment or recovery. Once a case is closed or settled, this lien does not automatically get removed. The bank requires a specific direction or an NOC from the court that initially ordered the lien. Navigating this process, especially across different cities, requires a clear legal strategy.
Consult with Lawyer: The very basic and important step to start is to talk to a Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in the range of Rs. 10,000 to 50,000, depending on the case. He is helping you in this situation to come out. He is an 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 in 7-10 days.
Obtain the Final Order: The first step is to get a certified copy of the court’s final judgment, settlement order, or closure report that officially terminates the case.
File a Formal Application: An application must be filed in the same court that heard the original case, requesting the issuance of an NOC addressed to the bank or a specific order to de-freeze the account.
Engage a Local Advocate: Since court procedures are physical and location-specific, you must engage an advocate in the city where the case was filed (in this scenario, Lucknow). They can represent you and handle the filings and appearances.
Applicable Sections of Law
The laws governing the attachment and release of bank accounts depend on the nature of the original case:
For Civil Matters: The attachment of property, including bank accounts, is governed by the Code of Civil Procedure, 1908. Specifically, Order 38 (Attachment before Judgment) and Order 21 (Execution of Decrees and Orders) are relevant. The release of the attachment also follows the procedures laid out in these sections.
For Criminal Matters: The Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) contains provisions for the freezing and attachment of property and bank accounts, especially if they are considered proceeds of crime or are relevant to the investigation. The release of such an account would require an order from the competent criminal court under the relevant provisions of the BNSS.
If you are the complainant
If you were the complainant who initiated the case and requested the lien on the accused’s account, your cooperation may be required to close the matter smoothly. Upon settlement or conclusion of the case, you may need to file a joint memo or a statement of no objection in court to facilitate the process of lifting the lien. Acting in good faith and assisting in the closure helps prevent further legal complications or allegations of harassment.
If you are the victim
If you are the victim of a false case and your account is frozen, you are the one who needs to take proactive steps. Here is the process to follow:
Hire a Local Lawyer: Your first and most crucial step is to hire a lawyer in the city where the court is located. They will be your representative on the ground.
Provide Necessary Documents: Furnish your lawyer with a certified copy of the final court order closing the case, your account details, and any communication from the bank regarding the lien.
Application to the Court: Your lawyer will draft and file an application in the court, praying for an order to the bank to remove the lien. This application will be supported by the final judgment.
Obtain the Court Order/NOC: After a brief hearing, the court will issue the necessary order or NOC. Your lawyer will obtain a certified copy of this new order.
Submit to the Bank: This certified order must be submitted to the branch manager or the legal department of the bank. The bank is legally obligated to comply with the court’s direction.
While you can communicate with your lawyer online or over the phone, the actual court process cannot be done online. A physical filing and appearance by your advocate are mandatory.
How the police behave in such cases
In a situation like this, where the case is already closed by the court, the police have no further role to play. The issue of a lien on a bank account is a procedural matter between you, the court, and the bank. The police are not involved in the process of issuing an NOC or directing a bank to de-freeze an account. Their role concluded when they filed the final report (challan or closure report) in court.
FAQs people normally have
What evidence is required?
To get the lien removed, your lawyer will primarily require:
A certified copy of the final judgment, decree, or settlement order from the court.
A copy of your identity proof (like an Aadhaar or PAN card).
The details of the bank account under lien, including the account number, bank name, and branch.
If available, a copy of the original court order that directed the bank to place the lien.
How long will the investigation take?
Since the investigation is already over, the relevant question is about the timeline for getting the lien removed. The process can be broken down as follows:
Obtaining Certified Copy of Judgment: 5-7 working days.
Filing Application and Getting Court Order: This can take 2-4 weeks, depending on the court’s schedule and workload.
Bank’s Internal Process: Once the order is submitted, the bank may take another 7-10 working days to process it and unfreeze the account.
Overall, you should expect the entire process to take approximately one to two months.
Advocate Sudhir Rao, Supreme Court of India