Supreme Court Quashes HC Directions Against OLX India In A Case Of Seller Duping Through Impersonation

The Supreme Court quashed the directions issued by Punjab and Haryana High Court to OLX India to adopt a screening mechanism with respect to the sellers who could post an advertisement on its Platform.

"There was no occasion for the High Court to pass these directions; and more particularly, without hearing the appellant"., the bench headed by Justice UU Lalit said while allowing the appeal filed by OLX India B.V.

Earlier, the Punjab and Harayana High Court had issued directions to OLX to delete and re-list all the advertisements on the platform only after attaching an open PDF file along with each advertisement, containing the following:-

(a) At least 02 ID proofs of the person, who is proposing to sell a property (moveable or immoveable) or asking any professional service;

(b) Two mobile numbers with a screen shot/photocopy of message sent by the server, who issued the SIM verifying name of owner as per their record;

(c) Details of the property to be sold whether moveable or immoveable and a document of title like Registration Certificate or insurance paper for vehicles or sale deed etc. for property.

(d) In aforesaid five Districts, in case the proposed seller is residing in a village or in the area of Municipal Corporation/Municipal Council, a certificate of Member of the Panchayat or Municipal Councillor certifying that the proposed seller is not involved in any such or similar criminal case and is a genuine owner of property.

(e) Only by putting this information in a PDF file, the advertisements will be accepted by OLX or any other such agency and will be floated for the general public.

These directions were passed while considering a case of a person impersonating another to upload a sale advertisement in the online platform.

Before the Apex Court, the OLX submitted that it is only making available the services of an internet platform through which prospective vendors of goods and merchandise can issue appropriate advertisements soliciting responses from the intending purchasers and that as an internet platform or an intermediary. It contended that it is not liable to guarantee the quality of the goods or merchandise which is put up for sale nor is it possible for it to certify about the genuineness and correctness of the deal sought to be entered into.

Regarding these contentions, the bench, also comprising Justices S. Ravindra Bhat and PS Narasimha, refused to comment. "Since the matter is pending consideration before the High Court, we do not enter into and deal with the submissions advanced by the appellant but leave the appellant to agitate all these issues before the High Court", the bench said while quashing the interim directions issued by the High Court.

Headnotes

Summary: Appeal against Punjab and Haryana HC interim directions issued against OLX -  Allowed -There was no occasion for the High Court to pass these directions; and more particularly, without hearing the appellant.

Case details

OLX India BV vs State of Haryana | CrA 378 OF 2022 | 8 March 2022

Citation: 2022 LiveLaw (SC) 269

Coram: Justices UU Lalit, S. Ravindra Bhat and PS Narasimha

Counsel:  For OLX Mr. Sidharth Luthra, Sr. Adv, Mr. Abhinay, AOR,Mr. Asif Ahmed, Adv, Mr. Himanshu Sachdeva, Adv,Ms. Shivani Bhushan, Adv., AAG Nikhil Goel for the State