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Informist, Thursday, Jan. 16, 2025

 

--On4Off Trading files permanent injunction suit in HC against NPCI, others 

--On4Off Trading seeks to bar NPCI from using UPI pay method via credit card 

--Delhi HC to hear On4Off Trading's case against NPCI on Monday 

 

NEW DELHI – On4Off Trading Pvt. Ltd. Thursday filed a permanent injunction suit in the Delhi High Court to restrain the National Payments Corp. of India and other parties from using its patented technology process for aggregating Unified Payments Interface payments using credit cards. On4Off Trading has sought compensatory damages from NPCI and others for infringing on its patent process. The court will hear the matter on Monday.

 

On4Off Trading said one of the directors of its company, along with his two children, invented the patented process which allows one to make a monetary transaction from a credit card after scanning a UPI Quick Response code. They invented a method and system that facilitates payments through various financial instruments after scanning the UPI code. 

 

The petitioner said that the Reserve Bank of India governor had earlier issued a statement which said that the central bank was planning to allow linking RuPay credit cards with Unified Payment Interface. In 2022, the RBI issued a circular thereby allowing UPI transactions using RuPay credit cards.

 

Earlier, UPI transactions were only allowed through debit cards, said the petitioner. However, through the circular, a transaction can be facilitated using only RuPay credit cards after scanning a UPI QR code, said the petitioner. NPCI was using the patented process, which was assigned to the petitioner, without any licence or permission from them, said On4Off Trading. 

 

By facilitating transactions through RuPay credit cards with UPI QR codes, NPCI has internalised the entire process developed by the inventor, in as much as both the RuPay and the UPI are the products of NPCI, said the petitioner. Allowing linkage of only RuPay credit cards with UPI is a business strategy implemented by NPCI to leverage illegal benefits from the unauthorised use of the patented process, said the petitioner.

 

It was also affecting the market of other card manufacturers, who have been authorised to sell their credit cards in India, said the petitioner. "As per the data published also available on the website of Defendant No. 1 (NPCI) in the month of October 2023 total transaction of Rupees 100 Crores (INR 1 billion) have been facilitated through RuPay Credit Cards on UPI QR Code and during the weekends the figure reached up to Rupees 150-200 Crores (INR 1.5 billion to INR 2. billion),"  said the petitioner. Other defendants in the case are the third-party application providers and banking institutions which help in facilitating the process patented by the plaintiff and are gaining illegal benefits through the unauthorised use of this process, said the petitioner.  End

 

Reported by Surya Tripathi

Edited by Tanima Banerjee

 

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