• Account freeze


We are two partner in firm..I am 70% and my partner is 30% shareholder. Recently he given application to bank regarding freez the company two bank accounts and stating in application that 50% of fund is his.And bank has been freez both the account without contacting me..there was no dispute or any violation of bussiness agreement. When i talk to him he said hr no longer wants to be a partner in firm. He is joint account holder And joint siganatry also. Now what I can do to unfreeze the bank account. Do bank has right to freez the account on single partner application?
Asked 6 years ago in Business Law

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10 Answers


Make a representation to the bank in written form about your grievance.

If that doesn't workout then you can make complaint to the Bank regulatory authorities.

Thank You

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

4.8 on 5.0

Raise a written complaint with bank in form of notice if bank dienst list raise the issue with the banking ombudsman in the local jurisdiction.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

Since your partner is joint signatory and joint account holder his consent is necessary to operate bank accounts

2) bank can freeze account on single partner application

3) best option is to invoke arbitration clause in partnership deed for resolution of all disputes

4) in the alternative dissolve the firm as partner does not want to continue as partner in the firm

Ajay Sethi
Advocate, Mumbai
94957 Answers
7576 Consultations

5.0 on 5.0

Since you are a joint signatory, besides holding 70% stake in this partnership, generally the Bank should not have imposed this ban on the account.

Obtain orders from the Court against the Bank to lift this sanction.

Contact a local lawyer and file a writ in the Patna High Court challenging the legality of the action taken by the Bank.

Vibhanshu Srivastava
Advocate, Lucknow
9625 Answers
303 Consultations

5.0 on 5.0

Dear Sir,

The bank has right to freeze the account. The relevant rules are as follows:PLEASE VISIT THE LINK ALSO. The remedy lies by issuing a legal notice to the Bank, followed by a Writ Petition to direct the Bank to unfreeze the account with a liberty to the aggrieved partner to approach the Civil Court to redress his grievance. Bank cannot penalize the other partner. The Supreme Court's observations are as below:


Customer Manual for Deposit Accounts Including Disclosure of Account Terms and Fee Schedule

2.2 Joint Accounts shall be opened with right of Survivorship Only


• These are opened when two or more persons desire to have a common or joint account. These can be operated: → jointly by all the persons with right of survivorship only; → by any one of them;

• In the event of death of anyone of the joint account holders, the balance will be available to the surviving account holder(s). Customer Manual for Deposits Current as on January 1, 2013 Page 5 of 29

• All account holders must sign the application and specimen signature card.

• The Bank reserves the right to freeze or suspend the account if: → it receives a letter from any one of the account holders objecting to further transactions, or → it is made aware of a dispute. In such an eventuality, all account holders will have to sign any instruction to the Bank.

• The Bank shall have the right to set off all funds in the account against any overdue debt, or to satisfy a judgment against the account holder or any one of the account holders in the case of joint account holders.



The Supreme Court on Friday directed the Central Bureau of Investigation (CBI) to de-freeze the bank accounts of Adarsh Cooperative Housing Society, and allow them to withdraw ₹1.68 crore to spend on building maintenance and litigation expenses.

A Bench of Justices J. Chelameswar and S.K. Kaul did not agree with the CBI’s objections that the money was part of the benami transactions made to purchase the flats in the building.

The court said the investigating agency could not convince it how the withdrawal of the amount against a security of immovable properties would affect the probe, especially when the money is not part of the charge sheet or linked to any fraud.

In a hearing in 2016, the SC had expressed empathy for the efforts made by the residents of the 28-story scam-tainted Adarsh apartments to maintain the lifts and other facilities.

The court had asked the probe agency to understand the sentiments of the residents, who hope that one day, by a miracle, they may be able to get back possession of the apartments.

The building is now in the possession of the government following a SC order on July 22.

The society had then sought a direction to the Military Engineering Services, the custodian of the building, to ensure proper maintenance of lifts, generators, and firefighting equipment as the office-bearers of the society and flat owners have been barred by the apex court from entering the premises.

Kishan Dutt Kalaskar
Advocate, Bangalore
6136 Answers
487 Consultations

4.8 on 5.0

1. IF the Firm's account was operated by Joint signatures, THEN the bank CANNOT freeze operations of the account with only one signature, unless there is a notice for fraud ....

2. You may submit another application to the Bank, under your signature to start operations of the account.

Keep Smiling .... Hemant Agarwal

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

Please file writ in the High Court making the bank and partner as parties for the stay on the request an unfreeze the accounts. In High Court both the respondents will reply their version and you may get stay.

Vimlesh Prasad Mishra
Advocate, Lucknow
6852 Answers
23 Consultations

4.9 on 5.0


Yes the bank can freeze the account if both the partners are signatory

Prefer A joint application by both the partners so that the bank defreezes tge account


Anilesh Tewari
Advocate, New Delhi
18079 Answers
377 Consultations

5.0 on 5.0

In this matter it all depends on the partnership agreement terms and conditions. Regarding bank account you have to check the application given by your partner for freezing the account that what type of ground he had taken. Bank can't freeze the account simply by one partner application but it depends on the ground taken in the application.

Rajan Prakash
Advocate, Patna
6 Answers

4.0 on 5.0

If the partner is the joint account holder and part of the signing authority, then the bank can act on his instructions too, however it may be noted that it was he who approached bank before you could.

You can settle the matter amicably between yourselves.

If he is not agreeing for any condition then you may seek the assistance of a competent court of law for solution

T Kalaiselvan
Advocate, Vellore
85158 Answers
2221 Consultations

5.0 on 5.0

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