Clues Network Pvt. Ltd. v. L’Oreal
(2019) 78 PTC 251 (DB)
In the High Court of Delhi
RFA (OS) (COMM) 1/2019
Before Justice S Muralidhar and Justice I S Mehta
Decided on April 04, 2019

Relevancy of the case:  Denial of protection to an intermediary under Section 79

Statutes and Provisions Involved

• The Information Technology Act, 2000 (Section 79)
• The Code of Civil Procedure, 1908 (Order XIII A, XXIII, XXXIX)

Relevant Facts of the Case

• The learned Single Judge bench had restrained the appellant from advertising, displaying and selling the L’Oreal products on the website (shopclues.com) without obtaining permission from the respondent.
• The court denied the protection available under Section 79 of the Information Technology Act, 2000 to the appellant (intermediary).
• The appellant filed an appeal against the order of the Single Judge in CS (Comm) 980/2016.

Prominent Arguments by the Advocates

• The appellant’s counsel argued that the order in question would lead to denial of protection under Section 79 in future cases.
• The respondent’s counsel submitted that the appellant is not entitled to get the protection under Section 79 of the Information Technology Act, 2000. It is involved in the unlawful act of infringing intellectual property rights.

Opinion of the Bench

• The court considered facts that the appellant withdrew its claim to provide the hundred per cent genuine products and took down the replica window.
• The Single Judge’s order refusing to protect the appellant under Section 79 is baseless. Moreover, the appellant did not get the opportunity to defend against the evidence produced.
• The court set aside the judgement of the Single Judge bench and restored the suit and pending interlocutory applications.

Final Decision

• Appeal allowed.
• Disposed of the applications.