Supreme Court Dismisses Appeal of Internet Intermediary in Defamation Case — Upholds Liability for Defamatory Content. The court found that the intermediary failed to act against defamatory content despite being notified, thus not qualifying for exemption under Section 79 of the IT Act.

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Case Note & Summary

The dispute arose from a criminal complaint filed by M/s. Visaka Industries against Google India Private Limited, where the appellant was summoned for allegedly hosting defamatory articles published by a third party. The complaint alleged that the articles harmed the reputation of the complainant, a public limited company manufacturing asbestos cement sheets. The appellant sought to quash the summons under Section 482 of the Code of Criminal Procedure, 1973, arguing that it was merely an intermediary and not liable for the content published by others. The High Court dismissed the petition, stating that Section 79 of the Information Technology Act, 2000, did not exempt the appellant from liability, especially since it failed to act upon the notice regarding the defamatory content. The Supreme Court upheld the High Court's decision, noting that the appellant did not take necessary steps to block the defamatory material and thus could not claim protection under the law. The court also addressed the distinction between the roles of intermediaries and publishers, emphasizing that mere hosting of content does not absolve an intermediary from liability if it has knowledge of the unlawful content. The court concluded that the appellant could be held liable for the defamatory statements made by the first accused, reinforcing the principle that intermediaries must exercise due diligence to avoid liability for third-party content.

Headnote

A) Criminal Law - Defamation - Liability of Intermediaries - Indian Penal Code, 1860, Sections 499, 500 - The court held that the appellant, as an intermediary, could not claim exemption under Section 79 of the Information Technology Act, 2000, as it failed to take action against defamatory content despite being notified. The court emphasized that the intermediary's role does not absolve it from liability if it does not exercise due diligence (Paras 8-10).

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Issue of Consideration

Whether the appellant, as an intermediary, could be held liable for defamatory content published by a third party.

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Final Decision

The Supreme Court dismissed the appeal, affirming the High Court's ruling that the appellant could not claim exemption under Section 79 of the IT Act due to failure to act against defamatory content.

Law Points

  • Defamation
  • Liability of Intermediaries
  • Section 79 IT Act
  • 2000
  • Section 499 IPC
  • Section 482 CrPC
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Case Details

2019 LawText (SC) (12) 176

Criminal Appeal No. 1987 of 2014

2019-01-18

K.M. Joseph

Shri Sajan Poovayya, Shri Sridhar Potaraju, Ms. Madhavi Divan

Google India Private Limited

M/s. Visaka Industries

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Nature of Litigation

Criminal complaint for defamation against an internet intermediary.

Remedy Sought

Quashing of summons issued to the appellant.

Filing Reason

Allegations of defamation due to published articles.

Previous Decisions

High Court dismissed the petition challenging the summons.

Issues

Liability of intermediaries for third-party content Exemption under Section 79 of the IT Act

Submissions/Arguments

Appellant argued it is not liable as an intermediary Complainant contended the appellant is responsible for hosting defamatory content

Ratio Decidendi

The court held that intermediaries must exercise due diligence to avoid liability for third-party content and cannot claim exemption if they fail to act upon knowledge of unlawful material.

Judgment Excerpts

The appellant did not move its little finger to block the material or to stop dissemination of the unlawful and objectionable material. The offence in this case was perpetuated from 31.07.2008 onwards since long prior to the substitution.

Procedural History

The appellant was summoned by the Magistrate, which was challenged in the High Court and subsequently dismissed, leading to the appeal in the Supreme Court.

Acts & Sections

  • Code of Criminal Procedure, 1973: Section 482
  • Indian Penal Code, 1860: Sections 499, 500
  • Information Technology Act, 2000: Section 79
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