Karnataka HC stays single-judge bench's ₹50 lakh-fine order against X Corp for two weeks

A division bench of the Karnataka High Court on Thursday stayed the order of the single judge bench for two weeks against X Corp (formerly Twitter) insofar as the cost imposed, subject to depositing a part of the cost to the tune of Rs 25 lakh. The micro blogging site has challenged the order and the fine of Rs 50 lakh imposed by the single judge.

A division bench headed by Chief Justice Prasanna B Varale passed this order, staying only the part of the single-judge bench order pertaining to the cost. The bench had said that the cost is payable to the Karnataka State Legal Services Authority within a 45-days period and if there is a delay, the petitioner has to pay an additional amount of Rs 5,000 per day.

X Corp had challenged the blocking orders issued by the Ministry of Electronics and Information Technology (MeitY). In June 2023, the single-judge bench had imposed the fine on X Corp for not complying with the government’s directions and resorting to speculative litigation.

The bench had observed that X Corp had demonstrably adopted a tactical approach to delay compliance, and that shows its intent to remain non-compliant to Indian law.

In its appeal, X Corp contended that imposition of exemplary cost was unjust and excessive, and deters other intermediaries from challenging the blocking orders that violate section 69A of the Information Technology Act. It prayed the division bench to stay the order on cost, which is due on August 14.

The division bench observed that though the single-judge bench, in a way recorded a positive finding insofar as locus of the petitioner, the order has given a detailed reasoning that the petition seriously suffered on account of inordinate delay, and latches and culpable conduct of the petitioner.

“The counsel for the appellant (X Corp) on instructions submits that the appellant is ready to pay some reasonable amount from the cost to show his bonafides. Accordingly, we direct the appellant to deposit an amount of Rs 25 lakh in this court within one week. Let the appeal be listed after two weeks,” the bench said.