Disposed

Global Payment Services Private Limited v. the State of Karnataka

Karnataka HC13 Jun 2024WP/5781/2024

Case brief

AI extract

What is this about?

A company sought defreezing of its bank and virtual accounts frozen on police notice during a cybercrime investigation, with only Rs.12,47,000 disputed. Following the Razorpay judgment, the court directed defreezing subject to a lien for the disputed amount.

What did the court decide?

Bank account No.991000254797 to be defrozen by marking a lien of Rs.12,47,000/-, subject to final outcome of investigation.

Global Payment Services Private Limited Vs the State… — Banking and Recovery | Karnataka HC (2024)

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NC: 2024:KHC:21312 WP No. 5781 of 2024

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13^TH DAY OF JUNE, 2024

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BEFORE

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THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.5781 OF 2024 (GM-RES)

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BETWEEN:

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GLOBAL PAYMENT SERVICES PRIVATE LIMITED A PRIVATE LIMITED COMPANY, INCORPORATED UNDER THE COMPANIES ACT, 1956 (NO.1 OF 1956) HAVING ITS REGISTERED OFFICE AT #603 AND 604 WELDONE TECH PARK, SOHNA ROAD, SECTOR-48, GURUGRAM, NEW DELHI-122018 REPRESENTED BY ITS AUTHORIZED SIGNATORY/DIRECTOR.

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SRI BIJENDER SINGH S/O RAM VINOD.

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…PETITIONER

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(BY SRI. AKASH B SHETTY, ADVOCATE)

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AND:

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Digitally signed by Vandana S Location: HIGH COURT OF KARNATAKA

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THE STATE OF KARNATAKA POLICE INSPECTOR, CYBER CRIME POLICE STATION, BANGALORE CITY – 560 051 REPRESENTED BY SPP HIGH COURT OF KARNATAKA.

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THE STATE OF KARNATAKA REPRESENTED BY THE SECRETARY, DEPARTMENT OF HOME AFFAIRS, AMBEKDAR VEEDHI, VIDHANA SOUDHA, BENGALURU-560001.

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NC: 2024:KHC:21312 WP No. 5781 of 2024

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AXIS BANK REP. BY THE MANAGER AXIS BANK LIMITED, ’AXIS HOUSE’, C-2, WADIA INTERNATIONAL CENTRE, PANDURANG BUDHKAR MARG, WORLI, MUMBAI-400 025.

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…RESPONDENTS

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(BY SRI. K.S. HARISH, GOVERNMENT ADVOCATE FOR R-1 & R-2; SMT. SREEDEVI AND

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SRI. JAI M. PATIL, ADVOCATES FOR R-3)

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THIS W.P IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT THE R3 BANK TO DEFREEZE THE PRIMARY ACCOUNT AND THE VIRTUAL ACCOUNT OF THE PETITIONER COMPANY MAINTAINED WITH RESPONDENT BANK AND PERMIT THE PETITIONER COMPANY TO USE THE ACCOUNTS AND ETC.

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THIS PETITION, COMING ON FOR PRELIMINARY HEARING , THIS DAY, THE COURT MADE THE FOLLOWING:

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ORDER

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In this petition, petitioner seeks the following reliefs:

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“(i) Issue a writ of mandamus by directing the 3^rd respondent bank to defreeze the Primary account and the virtual account of the petitioner company maintained with respondent bank and permit the petitioner company to use the accounts.

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(ii) Issue a writ of certiorari, quashing notice issued under Section 91 and Section 102 of Criminal Procedure Code dated 02.09.2023 by the 1^st respondent police to 3^rd respondent bank vide Annexure – A.

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(iii) Grant such other and further orders as this Hon’ble Court deems fit and proper under the facts and

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NC: 2024:KHC:21312 WP No. 5781 of 2024

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circumstances of the case in the interest of justice and equity.”

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Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record.

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In addition to reiterating the various contentions urged in the memorandum of petition and referring to the material on record, learned counsel for the petitioner submits that in respect of petitioner’s bank account No.991000254797 out of the total transaction amount, the disputed amount is only Rs.12,47,000/and that the petitioner has no objection for a lien to be created on the said amount and necessary directions may be issued to the respondent No.3 – bank to defreeze the aforesaid subject account by marking a lien only to an extent of disputed amount, which is Rs.12,47,000/-. In support of his contention, he placed reliance upon the judgments of this Court in Razorpay Software Private Limited Vs. The State of Karnataka and another – W.P.No.62/2022 dated 22.09.2022 and N. Nagaraju Vs. State of Karnataka and another – W.P.No.27214/2023 dated 23.01.2024.

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Per contra, learned counsel for respondent No.3 and learned AGA for respondent Nos.1 and 2 submits that the present

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NC: 2024:KHC:21312 WP No. 5781 of 2024

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petition may be disposed of in terms of the judgment passed in Razorpay Software Private Limited by marking a lien to an extent of Rs.12,47,000/- in the account of the petitioner.

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In view of the aforesaid facts and circumstances and

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the judgment of this Court in Razorpay’s case, I deem it just and appropriate to dispose of this petition directing to defreeze the aforesaid bank account No.991000254797 of the petitioner in respondent No.3 – bank by marking lien only to an extent of Rs.12,47,000/-. It is needless to state that marking of the said lien would be subject to the final out come of the investigation.

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Subject to the aforesaid observations and directions,

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the petition stands disposed of.

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Sd/JUDGE

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List No.: 1 Sl No.: 67

Global Payment Services Private Limited v. the State of Karnataka

Case brief

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Global Payment Services Private Limited v. the State of Karnataka

Case brief

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