FREEZING OF BANK ACCOUNT, A/C. COMPANY 1.

Mr. Z

Address….

Dear Sir,

RE:     FREEZING OF BANK ACCOUNT, A/C. COMPANY 1.

We refer to your letter dated 22.12.2003 on the above subject.

We have perused the papers/documents referred to us.

We understand that Company 1, a proprietorship concern of Mr. X (the Borrower) has been enjoying Time Loan facility from Bank 1, (“the Bank). However, the Borrower is not maintaining the account satisfactorily. The Bank has received a notice from Joint Commissioner of Customs, ICD, ……………, served under section 202(1) of the Customs Act 1969, in which Joint Commissioner of Customs has requested the Bank to freeze of account of the Borrower. In such situation, we are asked to advise as to the proper course of action that Bank should take.

Our opinion is as follows:

Section 202 (1)(f) of the Customs Act 1969 provides inter-alia that when, under this Act, any duty or regulatory duty is payable to the Government by any person and such duty or regulatory duty or penalty are not paid within the time it was required or ordered to be paid, the appropriate officer at any time require, by notice in writing, any Scheduled Bank having deposit of money of the person from whom such duty or regulatory duty or penalty or any other sum is recoverable of due to freeze the account or make the account inoperative on receipt of the notice.

It is clear from the above-mentioned provisions of law that the Bank is under obligation to comply the request of the Joint Commissioner of Customs. Therefore, we advise that Bank must stop all operation of the Borrower’s account until receive further advice from the Commissioner of Customs.

The Bank should serve notice to the Borrower for temporary freezing of his accounts.

Should you have any further query, please do not hesitate to contact the undersigned.

Thanking you.

Yours faithfully,

………………….

For: “The Lawyers & Jurists”

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