1 HN, J W.P.No.17412_2025 APHC010343842025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3457] FRIDAY,THE ELEVENTH DAY OF JULY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE HARINATH.N WRIT PETITION NO: 17412/2025 Between: 1. PHONEPE LIMITED, (FORMERLY KNOWN AS PHONEPE PRIVATE LIMITED) HAVING ITS REGISTERED OFFICE AT OFFICE-2, FLOOR NO. 5, WING-A, BLOCK-A, SALARPURIA SOFT ZONE, BELLANDUR VILLAGE, VARTHUR HOBLI, OUTER RING ROAD, BELLANDUR, BANGALURU, BANGALURU SOUTH, KARNATAKA-560 103. REP. BY ITS AUTHORIZED SIGNATORY, MS AKANKSHA CHOUDHARY ...PETITIONER AND 1. THE STATE OF ANDHRA PRADESH, REP. BY ITS PRINCIPAL SECRETARY, HOME DEPARTMENT, SECRETARIAT BUILDINGS, AMARAVATI. 2. THE STATION HOUSE OFFICER, CYBER CRIME P.S, VISAKHAPATNAM COMMISSIONERATE. 3. MR MUDUNURU NARASIMHA RAJU, S/O (LATE) SUBBARAJU, AGED ABOUT 62 YEARS, R/O FLAT NO. 212, VAISAKHI PERAL, CHINAGADILI, MIDILAPURI ROAD, VISAKHAPATNAM. 4. YES BANK LIMITED, REP. BY ITS AUTHORIZED REPRESENTATIVE, HAVING ITS REGISTERED OFFICE AT NORTH BLOCK, DB DIVISION, YES BANK HOUSE, PRABHAT NAGAR, WESTERN EXPRESS HIGHWAY, SATACRUZ EAST, MUMBAI-400 055. 5. ICICI BANK, REP. BY ITS AUTHORIZED REPRESENTATIVE. HAVING ITS REGISTERED OFFICE AT ICICI BANK TOWER, NEAR 2 HN, J W.P.No.17412_2025 CHAKLI CIRCLE, OLD PADRA ROAD, VADODARA, GUJARAT-390 007. ...RESPONDENT(S): Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased tomay be pleased It its therefore prayed that this Honble Court may be pleased to issue any appropriate Writ, order or direction, more particularly one in the nature of Writ of Certiorari calling for records and proceedings of CrI.M.P. No. 3191 of 2024 on the file of Chief Judicial Magistrate, Visakhapatnam and consequently, quash/set aside the Impugned Order dated 16.10.2024 passed by the Chief Judicial Magistrate, Visakhapatnam in CrI.M.P. No. 3191 of 2024 while directing Respondents to de-freeze the nodal account to the extent of Rs.2102/- which seems to be the amount that was directed to be frozen and pass any other order or orders as this Honble Court may deem fit and proper in the circumstances of the case. IA NO: 1 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased may be pleased to dispense with the Certified copy of the order dated 16.10.2024 passed by the Chief Judicial Magistrate, Visakhapatnam in CrI. M.P. No. 3191 of 2024 and pass such IA NO: 2 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased may be pleased to stay the operation of the Impugned Order dated 16.10.2024 passed by the Chief Judicial Magistrate, Visakhapatnam in CrI.M.P. No. 3191 of 2024 and pass such Counsel for the Petitioner: 1. VENKAT CHALLA Counsel for the Respondent(S): 1. GP FOR HOME 3 HN, J W.P.No.17412_2025 The Court made the following Order: 1. The learned counsel appearing for the petitioner submits that the petitioner company is aggrieved by the impugned order dated 16.10.2024 passed by the Chief Judicial Magistrate, Visakhapatnam, in Crl.M.P.No.3191 of 2024, whereby release of Rs.2,102/- was permitted in favour of respondent No.3 upon furnishing security proportionate to the said amount. It is further submitted that the said amount was illegally frozen in the petitioner’s Nodal Bank Account bearing No. 002261100000025 maintained with respondent No.4. 2. The learned counsel for the petitioner also submits that respondent No.2 filed a Crl.M.P.No.3191 of 2024 in Crime No.154 of 2024 (DDR No.7355 dated 09.10.2024) before the Chief Judicial Magistrate, Visakhapatnam, seeking defreezing of the petitioner’s Nodal Bank Account and transfer of funds to respondent No.3. The learned Magistrate, without impleading or hearing the petitioner, directed defreezing of the said account and transfer of the amount to respondent No.3 upon furnishing a bank guarantee. 3. It is submitted that it was neither an accused nor a party to the proceedings and was not even informed of the freezing order. Upon obtaining certified copies, the petitioner discovered that the impugned directions were issued without affording it an opportunity of being heard, in violation of the principles of natural justice, particularly audi alteram partem. 4. It is further submitted that the petitioner is merely an intermediary facilitating online transactions and is protected under Section 79 of the Information Technology Act, 2000, as it neither initiated the transaction, nor 4 HN, J W.P.No.17412_2025 selected the receiver, nor modified the information. The impugned order is stated to be contrary to the settled law laid down by the High Court of Karnataka in Rahul Chari and another v. State of Karnataka (W.P.No.2865 of 2022) and the High Court of Himachal Pradesh in PhonePe Pvt. Ltd v. State of Himachal Pradesh (Cr.MMO No.972 of 2023). 5. Heard the learned Assistant Government Pleader. 6. Considering the submissions made, the impugned order dated 16.10.2024 passed by the Chief Judicial Magistrate, Visakhapatnam, in Crl.M.P.No.3191 of 2024 is hereby set aside. The respondents are directed to defreeze the petitioner’s Nodal Bank Account bearing No. 002261100000025 maintained with respondent No.4. 7. With these observations, the Writ Petition is allowed. There shall be no order as to costs. As a sequel, pending miscellaneous petitions, if any, shall stand closed. ___________________ JUSTICE HARINATH.N Date: 11.07.2025 SJ 5 HN, J W.P.No.17412_2025 424 HONOURABLE SRI JUSTICE HARINATH.N Writ Petition No.17412 of 2025 Date: 11.07.2025 SJ