Supreme Court Quashes Interim Directions Against Online Marketplace in Criminal Petition Without Hearing. High Court's Order Requiring Detailed Documentation for Advertisements Set Aside as It Was Passed Without Affording Opportunity to the Platform, Leaving Substantive Issues for Consideration on Merits.

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Case Note & Summary

The appeal arose from an order dated 13.12.2021 by the High Court of Punjab and Haryana at Chandigarh in CRM-M No.14453 of 2021, titled 'Pintu v. State of Haryana & Others'. The High Court, while dealing with a petition seeking directions to police authorities, made tentative observations against the OLX Group and issued interim directions requiring all advertisements on the OLX platform to be deleted and re-listed only with attached PDF files containing detailed personal and property information, including ID proofs, mobile number verifications, title documents, and certificates from local authorities. The appellant, OLX India B.V., challenged these directions, arguing that as an internet platform or intermediary, it is not liable to guarantee the quality or genuineness of goods sold and cannot certify deals. The Supreme Court granted leave and heard arguments from the appellant's senior advocate and the state's additional advocate general, with the original petitioner not appearing. The court noted that the matter is pending before the High Court and thus refrained from addressing the substantive submissions on intermediary liability, leaving those issues for the High Court to decide. However, regarding the interim directions, the court held that there was no occasion for the High Court to pass such directions, especially without hearing the appellant. Consequently, the Supreme Court quashed the interim directions, allowing the appeal to that extent, while preserving the appellant's right to raise all issues before the High Court in the ongoing proceedings.

Headnote

A) Civil Procedure - Interim Directions - Quashing of Directions Without Hearing - Code of Civil Procedure, 1908 - High Court issued interim directions requiring online marketplace to attach detailed documents to advertisements without hearing the marketplace - Supreme Court held there was no occasion for such directions and quashed them as they were passed without hearing the affected party - Matter left for High Court to consider on merits (Paras 10-12).

B) Information Technology Law - Intermediary Liability - Scope of Liability for Online Platforms - Information Technology Act, 2000 - Appellant argued as an internet platform/intermediary, it is not liable to guarantee quality or genuineness of goods sold - Supreme Court did not decide this issue but allowed appellant to agitate it before High Court - Interim directions quashed without prejudice to merits (Paras 9-12).

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Issue of Consideration

Whether the High Court was justified in issuing interim directions against an online marketplace without hearing it, imposing requirements for advertisements on its platform

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Final Decision

Appeal allowed to extent of quashing interim directions passed by High Court; matter left for High Court to consider on merits

Law Points

  • Interim directions must not be issued without hearing the affected party
  • intermediaries are not liable to guarantee quality or genuineness of goods sold on their platforms
  • courts should avoid passing orders that impose undue burdens on intermediaries without proper consideration
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Case Details

2022 Lawtext (SC) (3) 1

CRIMINAL APPEAL NO.378 OF 2022 (Arising out of S.L.P. (Crl.) No.328 of 2022)

2022-03-08

( UDAY UMESH LALIT J. , S. RAVINDRA BHAT J. , PAMIDIGHANTAM SRI NARASIMHA J.)

Mr. Sidharth Luthra, Mr. Nikhil Goel

OLX India B.V.

State of Haryana & Others

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Nature of Litigation

Appeal against High Court's interim directions in a criminal miscellaneous petition

Remedy Sought

Appellant sought quashing of interim directions issued by High Court against it

Filing Reason

Aggrieved by High Court's directions requiring deletion and re-listing of advertisements with attached documents

Previous Decisions

High Court passed order dated 13.12.2021 with interim directions; Supreme Court stayed effect of order on 10.01.2022

Issues

Whether High Court was justified in issuing interim directions against appellant without hearing it

Submissions/Arguments

Appellant argued it is an internet platform/intermediary not liable to guarantee quality or genuineness of goods State's arguments not detailed in text

Ratio Decidendi

Interim directions should not be issued without hearing the affected party; courts must avoid imposing undue burdens on intermediaries without proper consideration

Judgment Excerpts

It is further directed that all the advertisements on OLX platform be deleted and be re-listed only after attaching an open PDF file along with each advertisement We, therefore, quash the directions quoted hereinabove

Procedural History

High Court passed order on 13.12.2021; Supreme Court granted leave, stayed order on 10.01.2022, heard appeal, and allowed it on 10.02.2022

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