Payment Gateway Wins Partial Relief: Service Continues with Restricted Account While Merchant Disputes Undergo Expedited Review

HC allowed partial relief to payment gateway service provider, permitting business operations while maintaining account freeze. Respondents agreed to review merchant objections within two weeks. Court balanced concerns about fund legitimacy with business continuity, reserving all parties' rights and enabling potential future legal recourse.

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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.

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