The Kerala High Court has directed Axis Bank to allow an LPG distributor to operate her frozen current account despite 21 requisitions involving ₹1.16 crore linked to disputed transactions. Justice M.A. Abdul Hakhim held that the petitioner could operate the account after considering the materials indicating that she had been defrauded.
Background
Radhika Menon, a 62-year-old LPG distributor from Thrissur district, approached the High Court seeking a direction to unfreeze her current account maintained with Axis Bank’s Kodungallur branch.
According to her submission, an establishment named Zenith Finance had allegedly defrauded her through WhatsApp by offering a loan. She shared her bank account details and Aadhaar information with the establishment, after which disputed transactions were routed through her account between January 8 and January 11, 2026.
The bank informed the court that it had received 21 requisitions relating to the transactions, involving a total lien amount of ₹1,16,32,892.
The bank confirmed that the requisitions concerned the transactions during the specified period and that no other requisitions had been received concerning the account. It also acknowledged that the petitioner had promptly informed the bank about the alleged fraudulent use of her account.
The court observed:
“ As per the materials available before this Court, it is clear that the disputed transactions are the result of the fraud committed on the Petitioner by the said Zenith Finance and the Petitioner is not responsible for the said transactions.”
Considering these circumstances, the court found that the petitioner could be permitted to operate the account without being restricted by the 21 requisitions.
The High Court disposed of the writ petition and directed Axis Bank to permit Menon to operate her account, ignoring the 21 requisitions involving ₹1,16,32,892.
The court further clarified that if Menon requested closure of the account, the bank must process that request without considering those requisitions.
Case Details
Case Title: Radhika Menon v. Branch Manager, Axis Bank, Kodungallur Branch & Others
Case Number: W.P.(C) No. 3948 of 2026
Judge: Justice M.A. Abdul Hakhim
Decision Date: October 23, 2026
