• Bank account freezed

I took a PL from a co-operative bank for 2L. But I got only 1L cash, remaining amount was taken by the bank staffs and agents. And the agent said that you don't have to pay the emi, so I didn't pay. Now after 4 years, co-operative bank people have attached my ICICI bank account by sending arbitral letter by some Arbitral authority. My emi account was not ICICI bank account, still they freezed my account. Is arbitration authority is equal to civil court? Can any bank freeze any account on the basis of an Arbitral letter?
Asked 4 years ago in Civil Law

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14 Answers


Please speak to the bank and settle you loan account to get release of your account and balance there in.

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

No on the basis of the arbitral award your account can not be freezed. The same can only be freezed in execution of the arbitral award.

Challenge such arbitrary action of the bank before the HC, if such action has been taken by a co-operative bank and also you may challenge the arbitral award.


Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

Yes bank can freeze you account on basis of wilful defaulter.a willful defaulters account can be freezes by the committee of bank and under RBI guidelines the list has to be published.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

1) Yes when you have signed the agreement with Bank for PL, if in its written the matter or dispute will solved by arbitration, than you have to obey the rule of Arbitrator.

Ganesh Kadam
Advocate, Pune
12338 Answers
191 Consultations

4.9 on 5.0

as on date you are defaulter

2) if you have taken loan you have to pay EMI

3)it appears there was arbitration clause in your loan contract

4)bank must have obtained orders to freeze your account

5) arbitratial tribunal has powers of court

6) it is necessary to peruse contents of arbitral letter to advise further

Ajay Sethi
Advocate, Mumbai
87973 Answers
6207 Consultations

5.0 on 5.0

Well,without seeing the award of the Arbitrator it is very difficult to advise.

The arbitrator is not supposed to freeze other account to recover the money lying due. It can pass an award for repayment of loan but not such extreme order of freezing some other bank account.

Anyway once the award is passed and if 120 days has not passed since the same is passed you challenge the arbitral award by preferring an appeal in the court.

The award being not based on sound principle of law is likely to be set aside and your account would be cleared again.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

First of all there is no such loan given in India wherein you don't have to repay its Emi its auto understood that what you take you have to give it back. Now you file a complain with police with all the details of bank employees and agents details.

Secondly go to the Arbitral authority and get the complete details of the case filed against you.

Take the order copy challenge it in high court for no proper intimation and setting aside the exparte order

Anwar Zaidi
Advocate, Mira Bhayandar
231 Answers

4.5 on 5.0

Yes, that can be. You need to challenge that order in respective district court and book the guilty persons.

Ganesh Singh
Advocate, New Delhi
6646 Answers
16 Consultations

4.5 on 5.0

Arbitration authorities doesn't have right to freeze the account but through court it is possible to freeze it. All banks have a right to freeze the amount in any bank

Prabhakaran Vasudevan
Advocate, Chennai
17 Answers
1 Consultation

4.8 on 5.0

I have come across many cases like this. Please understand that any bank can freeze any account on the basis of an arbitral letter. I need see the letter you have received to give concrete opinion.




Shri Gopal Verma
Advocate, New Delhi
312 Answers
5 Consultations

4.0 on 5.0

Dear Sir,

Before answering this question I need other feedback like whether you have furnished details of ICICI Bank account details at the time of taking loan. Whether you have not taken participation before Arbitrator. You may immediately approach District Court and get a stay order and also get vacated orders of freezing of your bank account. The powers of Arbitrator are that of Civil Court subject to certain conditions and terms agreed between you and co-operative Bank.

Kishan Dutt Kalaskar
Advocate, Bangalore
6050 Answers
381 Consultations

4.8 on 5.0

You can directly Move to the Hight court under writ jurisdiction as that is violation of your fundamental right and also Natural Justice principal has been violated.I will suggest to file under 226/227 of Constitution of India.

You can also file consumer case.

Ravi Kumar Singh
Advocate, Patna
52 Answers
2 Consultations

4.0 on 5.0

Write to the bank to de-freeze your bank account.

Take a legal recourse against the ICICI bank if they do not lift the sanction from your account.

Vibhanshu Srivastava
Advocate, New Delhi
9426 Answers
245 Consultations

5.0 on 5.0

Have you participated in the arbitration proceedings?

How did the cooperative bank came to know about your account with ICICI bank?

Once you have taken loan it is your duty to repay the same, you cannot claim any excuse for non repayment.

You can prefer and appeal against the action taken to freeze your other bank account.

It is not known that how the cooperative bank were able to initiate action to freeze your account with ICICI bank

T Kalaiselvan
Advocate, Vellore
78131 Answers
1543 Consultations

5.0 on 5.0

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