2023 (1) TMI 840 - HC - GST

Seeking release of Attached Bank Account of petitioner - petitioner 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 - HELD 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. 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.

Summary

Issues:
Freezing of bank accounts by respondents affecting petitioner's business operations.

Analysis:
The petitioner, a payment gateway service provider, filed a petition seeking to quash the orders freezing its escrow and current bank accounts maintained at different banks. The petitioner collects monies from subscribers and transfers them to merchants, retaining service charges. The frozen funds belong to various merchants, hindering the petitioner's ability to operate its business. The petitioner's senior counsel argued the urgent need to lift the freeze to revive business operations.

The respondents expressed concerns about the genuineness of the merchants but acknowledged that disbursement to genuine merchants should not be blocked. They assured that objections filed by the petitioner would be addressed within two weeks. The court disposed of the petition, allowing the petitioner to reapply if unsatisfied with the decision on its objections. The judgment reserved all rights and contentions of the parties, maintaining a balanced approach in addressing the freezing of accounts and the petitioner's business interests.