Blocking an account owing to a disagreement between the holders
In general, the bank must have a good reason to block an account, and it must give the holder(s) prior notice in order to avoid possible losses caused by returned deposits, withdrawals or debits.
One situation in which a bank may decide to block an account is that of an account with multiple holders who are giving the bank contradictory instructions.
As the bank is required to remain neutral and not favour any of the joint account holders, blocking the account is considered to be best banking practice. However, as mentioned, the bank must first inform all the account holders and maintain the account until they reach an agreement or a court order is issued