LI Network
Published on: 11 August 2023 at 11:25 IST
A division bench of the Karnataka High Court has issued a stay on the single-judge order that directed Twitter (now referred to as X Corp) to pay ₹50 lakhs as costs for its alleged failure to promptly comply with content-blocking orders issued by the Indian government between February 2021 and 2022.
However, the court’s stay order comes with the stipulation that X Corp must deposit ₹25 lakh with the court within a week as a demonstration of its good faith.
The interim order was issued by Chief Justice PB Varale and Justice MGS Kamal in response to an appeal filed by X Corp. The court clarified that the stay order should not be interpreted as indicating any favor towards X Corp.
The court emphasized that the permission granted to deposit ₹25 lakhs should not be misconstrued as an acceptance of equity in favor of X Corp. The order highlighted that the deposit was merely a measure to show good faith on the part of the appellant.
The stay order will remain in effect until the next hearing date for X Corp’s appeal, in which the company has challenged the dismissal of its previous writ petition and the imposition of the ₹50 lakhs fine.
The single-judge had directed Twitter to pay the ₹50 lakh fine by August 14, with an additional fine of ₹5,000 per day for any delay beyond that date.
With the interim stay order, Twitter is exempt from paying the fine under these conditions, as long as it deposits ₹25 lakhs within a week.
The next hearing in the case is scheduled for August 24. Meanwhile, the Central government has been allowed to file objections and apply for the vacation of the interim order, if necessary.
The court made this decision after considering the representation of X Corp, which indicated the platform’s willingness to pay a portion of the costs to display its good faith.
Although the counsel sought more time for the deposit, the court rejected the request, stating that a week was more than sufficient for a corporation of X Corp’s stature to make the payment.
During the hearing, the court questioned X Corp about any statement in its initial writ petition or appeal that demonstrated timely compliance with the Indian government’s orders to block certain content.
The court emphasized that no leniency could be given if X Corp disregarded the country’s laws.
X Corp responded by noting that it had complied with most of the blocking orders, with a few exceptions.
The platform had objected to these specific orders and was engaged in discussions with the Central government.
X Corp also pointed out that when the government later demanded compliance, Twitter promptly approached the High Court to challenge these orders.
The court, however, indicated that such communication or last-minute attempts to comply could not be equated with actual compliance. The judges noted that there had been a delay of about 1 year and 4 months in complying with a February 2021 order.
The court also rejected the Central government’s argument that Twitter’s challenge could not be heard by the High Court. The bench highlighted that the single judge had already dismissed this notion and that the government had not contested this decision.
Background
The appeal before the court opposes a June 30 judgment by Justice Krishna S Dixit, who had imposed a ₹50 lakh fine on Twitter. The fine was imposed due to Twitter’s alleged failure to provide reasons for not complying with the Central government’s content removal requests in a timely manner.
X Corp’s appeal contends that the single-judge order could enable the Central government to act arbitrarily, which might negatively impact users’ freedom of speech and expression.
