#bank account attachment

The Madhya Pradesh High Court has ruled that once the EPFO secures a lien on the auction proceeds of a defaulting company’s assets, attaching the personal bank account of a director is disproportionate and legally unsustainable. This clarifies that recovery under the EPF Act must respect the principle of proportionality, protecting individuals from dual enforcement when the debt is already secured.

The Punjab & Haryana High Court ruled that attaching an entire housing project and freezing all bank accounts in consumer execution proceedings is disproportionate. The court mandated phased payment of 50% of the principal within four months and ordered immediate release of excess assets, reinforcing proportionality as a key principle in enforcement under the Consumer Protection Act 2019.