The Delhi High Court has directed the State Bank of India (SBI) to maintain status quo over funds placed under lien or debit freeze in a company’s bank account and restrained the bank from releasing the amount to any third party during the pendency of a petition challenging the restrictions.
Justice Jasmeet Singh passed the order in a petition filed by Hentx Solutions Pvt. Ltd. and its director, observing that permitting the disputed amount to be transferred to another agency or individual could cause irreparable loss to the petitioners.
The Court was hearing an interim application seeking protection against the transfer of funds from the company’s bank account while the legality of the lien and debit freeze remained under challenge.
The petitioners stated that SBI imposed liens on their account in June 2025, followed by a debit freeze, without adequately responding to their queries. They submitted that although ₹13.14 lakh remained available for withdrawal as of September 23, 2026, the bank allegedly informed the director’s mother that the funds could not be withdrawn and were about to be transferred to a complainant in South India. Fearing the loss of these funds, the petitioners sought interim protection from the Court.
Considering the submissions, the Court observed that no prejudice would be caused to SBI if the amount under lien continued to remain in the company’s bank account.
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“I am of the view that no prejudice will be caused to the respondent No. 1 bank if the amount under lien continues to remain in the bank account of the petitioners,” the Court observed.
The Court further noted that if interim protection was not granted, the petition could be rendered infructuous and the petitioners would suffer grave loss. It also observed that permitting the amount under debit freeze to be transferred to another agency or individual would cause irreparable loss and injury.
Finding a prima facie case in favour of the petitioners and holding that the balance of convenience also lay in their favour, the Court directed SBI to maintain status quo over the amount placed under lien or debit freeze and not release it to any third party during the pendency of the petition.
The Court also issued notice on the interim application and granted SBI time to file its reply. The matter has been listed for further hearing on December 4, 2026.
