O R D E R

CM No.1959/2023 (for exemption)

1. Exemption is allowed, subject to all just exceptions.

2. The application is disposed of.

W.P.(C) 492/2023

3. The petitioner has filed the present petition, inter alia, praying as under:

“(a) to issue writ of certiorari or any other appropriate writ, order or directions, quashing the order dated 10.10.2022 passed by the learned Principal Additional Director General, DGGI, DZU (Respondent No.1) freezing / attaching Escrow Bank Account No.017261100000041 and Current Account Number 017281300000462 both maintained at Yes Bank Limited, Gurugram:

(b) to issue writ of certiorari or any other appropriate writ, order or directions, quashing the order dated 06.10.2022 passed by the learned SIO, DGGI, DZU (Respondent No.2) freezing / attaching current Bank Account No.50200067267270 maintained at HDFC Bank, Gurugram;

(c) Alternatively, to issue writ of mandamus or any other appropriate writ, order or directions, that the petitioner’s accounts may be allowed to be operated to the extent of essential expenditure to run the business, discharge of its GST monthly liability etc.;”

4. The petitioner states that it provides the service of a payment gateway where it collects monies from the subscribers and makes payment to merchants who have supplied goods or services to various subscribers. The petitioner claims that it collects service charges to the extent of 1-3%. All monies that are collected from the subscribers are credited in the escrow bank account. Part of the said funds, which are for the services rendered by the petitioner, are then transferred to its current account. The funds that remain are not funds belonging to the petitioner but are those belonging to various merchants and are required to be paid to them.

5. The petitioner is aggrieved as the respondents have frozen the escrow account as well as its current account. Resultantly, the petitioner can no longer carry on its business.

6. Mr. Gulati, learned senior counsel appearing for the petitioner, also submits that there is a grave urgency because if the order freezing the bank accounts continues, there would be no possibility of the petitioner reviving its business.

7. Mr. Harpreet Singh, learned counsel appearing for the respondents, states that there is a serious apprehension that the merchants are not genuine. However, he concedes that as far as monies belonging to genuine merchants are concerned; the disbursement cannot be interdicted.

8. He states that objections have been filed by the petitioner and the concerned authority shall pass a speaking order within two weeks from today.

9. In view of the above, the present petition is disposed of with liberty to the petitioner to apply afresh in case the petitioner is aggrieved by the order that may be passed in respect of its objections.

10. It is clarified that all rights and contentions of the parties are reserved.