Batik Air Services PVT LTD vs. Union Of INDIA And Ors

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W.P.(C)/7518/2026HC DelhiGSTCNR DLHC01024175202603 June 2026Bench: HON'BLE MR. JUSTICE AMIT SHARMA3 pages
For Petitioner: Mr. Anish Gupta and Mr. Mudit Gupta, AdvocatesFor Respondent: Mr. Adithya Srinivasan, SPC with Mr. Rishi Raj Singh, Advocate for UOI. Mr. Rahul Tyagi, Standing Counsel for ED, Ms. Priya Rai, Mr. Pawan Gangwal, Ms. Bhawna Gandhi, Mr. Aniket Kumar Singh and Mr. Priyansh Raj Singh, Advocates for R-3
AI SummaryDismissed

Facts

The petitioner, Batik Air Services Pvt Ltd, filed a writ petition before the Delhi High Court under Article 226 of the Constitution of India. The petition sought directions to the respondents, Union of India and others, to forthwith withdraw or revoke any communication, notice, instruction, or direction issued to Respondent No. 2 (a bank) for putting on hold, freezing, or debit-freezing the petitioner's bank accounts. The petitioner also prayed for the de-freezing and release of these accounts, allowing unrestricted operation and utilization of funds for bona fide business and operational expenses. The petitioner further requested that the freeze/debit-freeze actions be declared illegal, arbitrary, disproportionate, and violative of natural justice and law. The petition also sought to restrain further coercive action without due process and requested copies of all material relied upon for freezing the accounts.

Held

The Court noted that the concerned bank accounts of the petitioner had been de-frozen. In light of this development, the learned counsel for the petitioner sought leave to withdraw the present petition. Leave was granted by the Court. Consequently, the writ petition was dismissed as withdrawn and disposed of. Any pending applications related to the petition were also disposed of accordingly. The Court directed that the order be uploaded on the website of the Court forthwith. No specific findings were made on the legality or otherwise of the original freeze action, as the matter was resolved by the de-freezing of the accounts.

Key Issues

1. Whether the freeze/debit-freeze actions and directions issued by Respondent Nos. 1 and 3 against the bank accounts of the Petitioner were illegal, arbitrary, disproportionate, violative of the principles of natural justice, and contrary to the provisions of law? Petitioner's Contention: The petitioner argued that the freeze/debit-freeze actions were illegal, arbitrary, disproportionate, and violated principles of natural justice and law. They sought an order directing the respondents to withdraw/revoke such communications and to de-freeze the bank accounts. They also sought permission to utilize the funds for operational expenses and requested copies of all material relied upon for the freeze. Revenue/State's Contention: The judgment does not record any specific arguments or contentions from the respondents (Union of India and others).

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
$~50 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 7518/2026, CM APPL. 36425/2026 & CM APPL. 36427/2026 BATIK AIR SERVICES PVT LTD .....Petitioner Through: Mr. Anish Gupta and Mr. Mudit Gupta, Advocates. versus UNION OF INDIA AND ORS .....Respondents Through: Mr. Adithya Srinivasan, SPC with Mr. Rishi Raj Singh, Advocate for UOI. Mr. Rahul Tyagi, Standing Counsel for ED, Ms. Priya Rai, Mr. Pawan Gangwal, Ms. Bhawna Gandhi, Mr. Aniket Kumar Singh and Mr. Priyansh Raj Singh, Advocates for R-3. CORAM: HON'BLE MR. JUSTICE AMIT SHARMA

O R D E R %

03.06.

2026

1.

This hearing has been done through hybrid mode.

2.

The present petition under Article 226 of the Constitution of India, 1950, seeks the following prayers: - “a. Issue an appropriate Writ of Mandamus or any other appropriate Writ, Order or Direction directing Respondent Nos. 1 and 3 to forthwith withdraw/revoke any communication, notice, instruction or direction issued to Respondent No. 2 for putting on hold/freezing/debit-freezing the bank accounts of the Petitioner bearing Account Nos. 181905001507, 181905001592, 181905002059 and 181905500595 maintained with Respondent No.2 Bank;

b. Issue an appropriate Writ, Order or Direction directing Respondent No.2 to forthwith de-freeze/release the aforesaid bank This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 05/06/2026 at 11:23:01

accounts of the Petitioner and permit unrestricted operation thereof including utilization of the amounts lying therein;

c. Issue an appropriate Writ, Order or Direction declaring the impugned freeze/debit-freeze actions and directions issued by Respondent Nos. 1 and 3 against the bank accounts of the Petitioner as illegal, arbitrary, disproportionate, violative of the principles of natural justice and contrary to the provisions of law;

d. Issue an appropriate Writ, Order or Direction restraining Respondent Nos. 1 and 3 and all agencies acting under them from taking any further coercive action against the Petitioner or issuing any further freeze/debit-freeze directions in relation to the bank accounts of the Petitioner without following due process of law and without granting adequate opportunity of hearing to the Petitioner; e. Issue an appropriate Writ, Order or Direction permitting the Petitioner to utilize and operate the amounts lying in the aforesaid bank accounts for meeting bona fide business and operational expenses including airline operational liabilities, BSP settlements, employee salaries, GST liabilities, statutory dues, authority payments and other day-today operational expenses;

f. Issue an appropriate Writ, Order or Direction directing the Respondents to furnish copies of all freeze/debit-freeze notices, communications, instructions and material relied upon for freezing the bank accounts of the Petitioner;

g. Pass any other or further order(s), direction(s) or relief(s) as this Hon'ble Court may deem fit and proper in the facts and circumstances of the present case in favour of the Petitioner and against the Respondents;

h. Award costs of the present proceedings in favour of the Petitioner.”

3.

Learned counsel for the petitioner submits that the concerned bank accounts have been defreezed, and in view of the same, he seeks leave to withdraw the present petition.

4.

Leave granted. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 05/06/2026 at 11:23:01

5.

The present petition is dismissed as withdrawn and disposed of.

6.

Pending application(s), if any, also stands disposed of accordingly.

7.

Order be uploaded on the website of this Court, forthwith.

AMIT SHARMA, J (VACATION JUDGE) JUNE 3, 2026/bsr/ns

This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 05/06/2026 at 11:23:01

Reproduced from the public record of the Delhi High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.