Bombay High Court Grants Injunction Against YouTuber for Disparaging Marico's Products in Video Review. Court holds that false and malicious statements in product reviews can constitute disparagement, and interim injunction can be granted even if defendant is not a competitor.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The plaintiff, Marico Limited, a company manufacturing and selling various consumer products including hair oils and foods, filed a suit against the defendant, Abhijeet Bhansali, who runs a YouTube channel called 'Bearded Chokra'. The defendant published a video titled 'The TRUTH about Parachute Coconut Oil & Hair Oils in India' on 18 June 2019, in which he made several statements about the plaintiff's products, including that they contain harmful chemicals, that the plaintiff's coconut oil is not pure, and that the plaintiff's products are overpriced and misleading. The plaintiff alleged that these statements were false, malicious, and disparaging, and sought an interim injunction to restrain the defendant from publishing the video or similar content. The defendant argued that his statements were honest opinions, that he was not a competitor, and that the video was protected under freedom of speech. The court examined the video and the defendant's submissions, and found that several statements were false and made without due diligence. The court held that the defendant had acted recklessly and maliciously, and that the plaintiff had made out a prima facie case for disparagement. The court granted an interim injunction restraining the defendant from publishing the video or similar disparaging content, but allowed the video to remain online with a disclaimer stating that the video is the defendant's opinion and that the plaintiff disputes the allegations. The court also directed the defendant to pay costs of Rs. 5 lakhs to the plaintiff.

Headnote

A) Disparagement - False Statements - Malice - The court examined whether the defendant made false, malicious or reckless statements about the plaintiff's products in a YouTube video, and held that several statements were false and made without due diligence, amounting to disparagement (Paras 52-68).

B) Injunction - Interim Relief - Balance of Convenience - The court considered the balance of convenience and held that the plaintiff would suffer irreparable harm if injunction is not granted, while the defendant's freedom of speech can be protected by allowing the video to remain with a disclaimer (Paras 79-83).

C) Freedom of Speech - Article 19 - Commercial Speech - The court held that the defendant's right to free speech under Article 19 of the Constitution is not absolute and must be balanced against the plaintiff's right to reputation and business, especially when statements are false and malicious (Paras 76-79).

D) Product Review - YouTube - Due Diligence - The court found that the defendant failed to exercise due diligence in verifying facts before publishing the video, and that the video contained several false statements (Paras 60-66).

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Issue of Consideration

Whether the defendant's video review disparaged the plaintiff's products and whether an interim injunction should be granted pending trial.

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Final Decision

The court allowed the Notice of Motion and granted an interim injunction restraining the defendant from publishing the impugned video or any similar disparaging content. However, the court permitted the defendant to keep the video online with a disclaimer stating that the video is the defendant's opinion and that the plaintiff disputes the allegations. The court also directed the defendant to pay costs of Rs. 5 lakhs to the plaintiff.

Law Points

  • Disparagement
  • Defamation
  • Malice
  • False Statements
  • Injunction
  • Freedom of Speech
  • Product Review
  • YouTube
  • Commercial Speech
  • Due Diligence
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Case Details

2020 LawText (BOM) (01) 97

Notice of Motion No. 1094 of 2019 in COMIP No. 596 of 2019

2020-01-15

S. J. Kathawalla J.

Mr. Virag Tulzapurkar, Senior Advocate and Mr. Hiren Kamod, Advocate alongwith Mr. Nishad Nadkarni i/b. Khaitan & Co. for the Plaintiff; Dr. Abhinav Chandrachud, Advocate i/b. Mr. N. Amin for the Defendant.

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Nature of Litigation

Commercial suit seeking injunction against disparagement and defamation through a YouTube video.

Remedy Sought

Plaintiff sought interim injunction restraining defendant from publishing or continuing to publish the impugned video and similar disparaging content.

Filing Reason

Defendant published a YouTube video containing false and malicious statements about plaintiff's products, causing disparagement and damage to plaintiff's reputation and business.

Issues

Whether the defendant's video contained false and malicious statements amounting to disparagement of the plaintiff's products. Whether the plaintiff is entitled to an interim injunction restraining the defendant from publishing the video.

Submissions/Arguments

Plaintiff argued that the defendant made false statements about the plaintiff's products, including that they contain harmful chemicals, that the coconut oil is not pure, and that the products are overpriced and misleading. Plaintiff submitted that these statements were made without any scientific basis and with malice, causing irreparable harm to the plaintiff's reputation and business. Defendant argued that his statements were honest opinions based on his research, that he is not a competitor, and that the video is protected under Article 19 of the Constitution. Defendant also argued that the plaintiff has not suffered any special damages and that the balance of convenience is in favor of allowing the video to remain online.

Ratio Decidendi

The court held that false and malicious statements in product reviews can constitute disparagement, and an interim injunction can be granted even if the defendant is not a competitor, provided the plaintiff makes out a prima facie case of disparagement and the balance of convenience is in favor of granting injunction. The court also held that the right to free speech under Article 19 is not absolute and must be balanced against the right to reputation and business.

Judgment Excerpts

The court found that several statements in the video were false and made without due diligence, amounting to disparagement. The court held that the defendant's right to free speech under Article 19 is not absolute and must be balanced against the plaintiff's right to reputation and business.

Procedural History

The plaintiff filed a commercial suit (COMIP No. 596 of 2019) along with a Notice of Motion (No. 1094 of 2019) seeking interim injunction. The court heard arguments and reserved judgment on 23 August 2019, and pronounced judgment on 15 January 2020.

Acts & Sections

  • Constitution of India: Article 19
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