{"id":276419,"date":"2022-08-19T17:00:26","date_gmt":"2022-08-19T11:30:26","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=271939"},"modified":"2022-08-19T17:00:26","modified_gmt":"2022-08-19T11:30:26","slug":"intermediary-entitled-to-claim-protection-u-s-79-it-act-for-criminal-liability-unless-active-role-is-disclosed-delhi-high-court-quashes-fir-against-flipkart","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2022\/08\/19\/intermediary-entitled-to-claim-protection-u-s-79-it-act-for-criminal-liability-unless-active-role-is-disclosed-delhi-high-court-quashes-fir-against-flipkart\/","title":{"rendered":"Intermediary entitled to claim protection u\/s 79 IT Act for criminal liability unless ‘active role’ is disclosed; Delhi High Court quashes FIR against Flipkart"},"content":{"rendered":"
\n

\n

Delhi High Court<\/span>: In a case where FIR was registered by Managing Director of Sanash Impex Pvt. Ltd. (\u2018respondent’) against Flipkart (\u2018petitioner’) for allegedly selling fake products of DC Dermacol cosmetics, Asha Menon J. quashed the FIR stating that this is one such case where the registration of an FIR against an intermediary would lead to miscarriage of justice considering the basic ingredients being met to avail protection under Section 79<\/a> of Information Technology Act, 2000<\/a>.<\/p>\n

Flipkart is an e-commerce entity that provides its portal for the sale of products to other sellers. Respondent 2, being MD of Sanash Impex Pvt. Ltd. has been authorized with absolute and exclusive right to sell DC DERMACOL cosmetic products in India, both online and offline. DC DERMACOL is a product of an international brand (Czech Brand) and gained high repute as a brand all over the world in respect of skin makeup.<\/p>\n

The allegations are such that it is in connivance with the fake\/unauthorized re-sellers. Thus, the respondent 2, on behalf of its company, accused the petitioner of cheating and illegal selling of DC DERMACOL cosmetics products. On the basis of this complaint, FIR was registered for the commission of offences under Sections 103\/104 of the Trademark Act, 1999 and Section 63<\/a> of the Copyright Act, 1957<\/a>.<\/p>\n

Thus, instant petition was filed under Articles 226<\/a> and 227<\/a> of the Constitution of India<\/a> read with Section 482<\/a> of Criminal Procedure Code<\/a> praying for quashing of the said FIR.<\/p>\n

Counsel for Petitioner Mr. Siddharth Luthra submitted that the petitioner was an intermediary<\/span> as defined under Section 2(1) (w)<\/a> of Information Technology Act, 2000<\/a> and was thus protected under Section 79<\/a> of Information Technology Act, 2000<\/a>. It was further submitted that until and unless a court order was served upon the petitioner, there was no obligation on the petitioner, as an intermediary, to remove any material from its portal. It was submitted that in the present case, respondent 2 has not initiated any civil proceedings and no court order had been served upon the petitioner. As such, the FIR against the petitioner was mis-placed and mala fide.<\/p>\n

\u201cIntermediary\u201d is defined under Section 2(1)(w)<\/a> Information Technology Act, 2000<\/a> as follows:<\/p>\n

Section 2(1)(w) \u2014intermediary, with respect to any particular electronic records, means any person who on behalf of another person receives, stores or transmits that record or provides any service with respect to that record and includes telecom service providers, network service providers, internet service providers, web-hosting service providers, search engines, online payment sites, online-auction sites, online-market places and cyber cafes.<\/b><\/p>\n

Placing reliance on Google India Private Limited<\/i> v. Visaka Industries,<\/i> (2020) 4 SCC 162<\/a>, the Court noted that the e-market portals, like the petitioner, are intermediaries.<\/p>\n

The Court further noted that IT Act does not provide for infringement of trademark or copyright as an offence thereunder and the only obligation of an intermediary<\/span> is provided under Section 79 of IT Act which incidentally falls under Chapter XII under the title \u2014Intermediaries Not to Be Liable in Certain Cases<\/span>.<\/p>\n

It was stated that the obligation of the intermediary is to observe due diligence<\/span> and follow<\/span> the guidelines that may be prescribed by the Government in this regard. Therefore, reference will have to be made to the Information Technology (Intermediary Guidelines) Rules, 2011 (\u2018IT Guidelines’). Rule 3(1) of IT Guidelines provides for due diligence to be observed by the intermediary, however, the non-compliance of these Guidelines\/Rules have not been declared to be an \u201coffence\u201d under the IT Act.<\/p>\n

The Court remarked the present matter relates to criminal liability. The simple question is whether compliance with the \u201cdue diligence\u201d requirement under Rule 3 of IT Guidelines would render the intermediary eligible for exemption from criminal liability also<\/span>.<\/p>\n

The Court opined that the standard for fixing criminal liability is far higher than that under civil law, one requiring proof \u2018beyond reasonable doubt’ and not just a \u2018balance of probabilities. Thus, unless an active role is disclosed in the commission of the offences complained of, the intermediary, such as the present petitioner, would be entitled to claim protection under Section 79 of the IT Act<\/span>. Thus, when compliance with the \u201cdue diligence\u201d requirement under Rule 3 of IT Guidelines is evident, ex facie, the exclusion of liability under Section 79 of IT Act would include exclusion from criminal prosecution.<\/span><\/p>\n

The Court observed that the petitioner has complied with the Guidelines by putting it on their Terms of Use,<\/span> that the users cannot display what belongs to another person and over which they have no right or which infringes upon or violates any third party’s rights, including but not limited to intellectual property rights, rights of privacy or rights of publicity; or promotes an illegal or unauthorized copy of another person’s copyrighted work or infringes any patent, trademark, copyright, proprietary rights, third-party’s trade secrets, rights of publicity or privacy, or is fraudulent or involves the sale of counterfeit or stolen items or which violates any law for the time being in force. Thus, due diligence under Rule 3 of IT Guidelines has been complied with.<\/span><\/p>\n

The Court also considered a moot question whether the information provided by the complainant would suffice to obligate the petitioner to take down the allegedly offending information\/sites\/products. It noted that the intermediaries are certainly not situated to determine the correctness of a claim by a complainant to a trademark or copyright.<\/p>\n

The court remarked that the present case goes a step ahead as the FIR has been lodged only against the petitioner and another platform, as none of the other sites or entities, allegedly selling the products which are either fake or unauthorized, are even named.<\/span><\/p>\n

Thus, placing reliance on State of Haryana<\/i> v. Bhajan Lal<\/i>, 1992 Supp (1) SCC 335<\/a>, the Court quashed the FIR qua the petitioner holding that this is one such case where the registration of an FIR against an intermediary would lead to miscarriage of justice not barring investigations in order to ascertain the identity of those who are infringers and\/or unauthorized sellers of the products of the Czech company.<\/p>\n

[Flipkart Internet Pvt Ltd v. State of NCT of Delhi, 2022 SCC OnLine Del 2439<\/a>, decided on 17-08-2022<\/span>]<\/p>\n

\n

Advocates who appeared in this case :<\/p>\n

For Petitioners- Mr. Siddharth Luthra, Senior Advocate with Mr. Dheeraj Nair, Mr. Manish K. Jha, Ms. Shruti Dass and Mr. Ayush Kaushik, Advocates;<\/p>\n

For Respondents- Mr. Amol Sinha, ASC for R-1\/ State with Mr. Anshum Jain and Mr. Rahul Kochar, Advocates and Insp. B.M. Bahuguna Mr. Vivek Raja, Advocate for R-2.<\/p>\n

\n

*Arunima Bose, Editorial Assistant has put this report together.<\/span><\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Delhi High Court: In a case where FIR was registered by Managing Director of Sanash Impex Pvt. Ltd. (\u2018respondent’) against Flipkart (\u2018petitioner’) <\/p>\n","protected":false},"author":67011,"featured_media":268833,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[51038,9271,51039,3067,35497,3273,38803,30630,51040,51041,3221],"class_list":["post-276419","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-against-flipkart","tag-copyright","tag-cosmetic","tag-FIR","tag-flipkart","tag-Information_Technology","tag-intermediary","tag-it-act","tag-safe-harbor","tag-shreya-singhal","tag-Trademark"],"yoast_head":"\nIntermediary entitled to claim protection u\/s 79 IT Act for criminal liability unless 'active role' is disclosed; Delhi High Court quashes FIR against Flipkart | SCC Times<\/title>\n<meta name=\"description\" content=\"In a case where FIR was registered by Managing Director of Sanash Impex Pvt. 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Allahabad High Court quashes FIR against Flipkart","author":"Editor","date":"October 20, 2022","format":false,"excerpt":"Allahabad High Court: In a writ petition filed by Flipkart, seeking quashing of the First Information Report (FIR) for offences under Sections 406, 420, 467, 468, 471, 474 and 474-A of the Penal Code, 1860 (IPC), the division bench of Suneet Kumar and Syed Waiz Mian, JJ. while quashing the\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Allahabad High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/07\/allahabad_high_court.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/07\/allahabad_high_court.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/07\/allahabad_high_court.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/07\/allahabad_high_court.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/07\/allahabad_high_court.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":273112,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/09\/06\/ebc-publishing-pvt-ltd-amazon-flipkart-mackhingee-publishers-illegally-selling-inferior-quality-books-first-information-report-action-taken-report-copyright-act-counterfeit-infringemen-2\/","url_meta":{"origin":276419,"position":1},"title":"Sale of Unauthorised\/Counterfeit copies of EBC Books: FIR filed against Amazon, Flipkart and Mackhingee Publisher; Police files status report","author":"Editor","date":"September 6, 2022","format":false,"excerpt":"Tis Hazari Court, Delhi: In a case relating to the unauthorized printing\/binding\/manufacturing\/storing\/advertising for sale and selling of counterfeit books published by Eastern Book Company, Police has told the Court that FIR under Ss. 63 and 65 of the Copyright Act, 1957 has been registered against Amazon, Flipkart and Mackhingee Publisher\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/09\/MicrosoftTeams-image-47-1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/09\/MicrosoftTeams-image-47-1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/09\/MicrosoftTeams-image-47-1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/09\/MicrosoftTeams-image-47-1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/09\/MicrosoftTeams-image-47-1.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":359493,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/09\/09\/chh-hc-no-relief-flipkart-agent-for-delivering-knives-used-for-murder\/","url_meta":{"origin":276419,"position":2},"title":"Chhattisgarh HC| No relief to Flipkart associated delivery agent, area manager for delivering knives allegedly used for a murder","author":"Sonali Ahuja","date":"September 9, 2025","format":false,"excerpt":"\u201cThe FIR specifically alleges that the knives ordered by the accused persons through Flipkart, which were prohibited under the Arms Act, were delivered through the logistics chain of ElasticRun where the present accused persons were employed, despite prior communications and warnings from the police authorities to e-commerce platforms to desist\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"delivering knives used for murder","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/09\/delivering-knives-used-for-murder.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/09\/delivering-knives-used-for-murder.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/09\/delivering-knives-used-for-murder.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/09\/delivering-knives-used-for-murder.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":270925,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/07\/30\/eastern-book-company-sues-amazon-flipkart-for-selling-counterfeit-unauthorized-copies-of-its-books-delhi-court-directs-police-to-file-an-action-taken-report\/","url_meta":{"origin":276419,"position":3},"title":"Eastern Book Company sues Amazon, Flipkart etc. for selling counterfeit\/unauthorized copies of its books; Delhi Court directs Police to file an action taken report","author":"Editor","date":"July 30, 2022","format":false,"excerpt":"Tis Hazari Court, Delhi: In a case relating to the unauthorized printing\/binding\/manufacturing\/storing\/advertising for sale and selling of counterfeit books published by EBC, Siddharth Malik, J. has directed SHO to provide an action taken report before the next date of hearing. Background of the case: The Complainants, EBC Publishing Pvt. Ltd.\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/07\/EBC-Case.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/07\/EBC-Case.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/07\/EBC-Case.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/07\/EBC-Case.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/07\/EBC-Case.png?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":320950,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/04\/29\/seller-liability-sale-counterfeit-products-protein-shake-flipkart-scdrc-legal-news\/","url_meta":{"origin":276419,"position":4},"title":"SCDRC holds seller liable to pay compensation of Rs 30,000 for selling counterfeit Protein Powder through Flipkart","author":"Sucheta","date":"April 29, 2024","format":false,"excerpt":"The State Commission absolved Flipkart from any liability as it was merely facilitating the sale through its portal. However, it was noted that Flipkart should have displayed strict attitude vis-\u00e0-vis breach of terms regarding sale of counterfeit products on its site.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"counterfeit protein powder flipkart","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/04\/counterfeit-protein-powder-flipkart.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/04\/counterfeit-protein-powder-flipkart.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/04\/counterfeit-protein-powder-flipkart.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/04\/counterfeit-protein-powder-flipkart.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":271353,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/08\/08\/delhi-high-court-restrains-flipkart-from-allowing-third-party-sellers-to-latch-on-to-mark-v-tradition-directs-to-ensure-latching-on-feature-is-di\/","url_meta":{"origin":276419,"position":5},"title":"Delhi High Court restrains Flipkart from allowing third-party sellers to \u2018latch on\u2019 to mark \u2018V Tradition\u2019; Directs to ensure \u2018Latching On\u2019 feature is disabled","author":"Prachi Bhardwaj","date":"August 8, 2022","format":false,"excerpt":"Delhi High Court: Flipkart (\u2018defendant\u2019) was sued by V Traditions (\u2018plaintiff\u2019) for infringing its mark by allowing third party sellers to latch on to the plaintiff product listings featured as best sellers, Prathiba M Singh J. restrains Flipkart from allowing any third-party sellers from \u2018latching on\u2019 to the mark \u2018V\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Delhi High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/07\/delhi_high_court.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/07\/delhi_high_court.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/07\/delhi_high_court.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/07\/delhi_high_court.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/07\/delhi_high_court.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/276419","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67011"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=276419"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/276419\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/268833"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=276419"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=276419"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=276419"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}