Delhi High Court Directs Business Magazine To Take Down 'Defamatory' Articles Against OYO

The Delhi High Court has directed the business magazine Inventiva to immediately take down at least six "defamatory" articles published by it against the startup OYO, which is a well known brand in the global hospitality space.

Justice Mini Pushkarna also restrained the Nine Network-owned website from publishing and disseminating any false, defamatory and misleading statements or articles against OYO.

"The plaintiff has been able to make a prima facie case in its favour for grant of ad-interim injunction in its favour. The balance of convenience is in favour of the plaintiff. Irreparable harm and injury would be caused to the plaintiff if an interim injunction is not granted," said the court.

The six article directed to be taken down were published against OYO in 2019 and this year, accusing the hospitality chain of having indulging in money laundering and scams.

The suit was filed by Oravel Stays Limited, the company which runs its business as OYORooms, against Nine Network Private Limited and others alleging that the defendants were indulging in malicious propaganda against OYO on the website Inventica.

OYO accused the website of publishing "false, derogatory, and defamatory statements and articles" with an intent to damage the reputation of the startup and its founder.

"These articles are freely available on the websites of the defendants and they are gaining traction to the peril and prejudice of the plaintiff. In the said articles, there are libelous, scandalous and defamatory comments against the plaintiff," Senior Advocate Jayant K. Mehta submitted.

The statements cannot be said to be made in public interest, the court was told, adding the articles are a result of personal vendetta.

Refuting the allegations made in the articles, OYO submitted that no money laundering or tax evasion cases are pending against the company or its founder. The court was also told there are no insolvency proceedings pending against the plaintiff company.

OYO further argued that the website had attempted to increase its viewership by "publishing sharply worded and controversial" articles about it and misrepresented the correct facts about its finances and share valuation.

"Defendant Company being a small Company, is publishing these misleading articles to personally profit from the increased viewership of these controversial articles. The defendants have sought to harm the reputation and goodwill of the plaintiff by publishing defamatory articles," it was submitted.

Observing that the plaintiff was able to make a prima facie case, the court said defendants have chosen not to appear before it despite service through email on their verified email account.

"Considering the documents on record as well as after hearing the learned senior counsel for the plaintiff, this Court hereby restrains defendants including their servants, agents, representatives, employees and other constituents from making, publishing and disseminating or publishing any false, defamatory, disparaging and misleading statements or articles pertaining to the plaintiff," said the court.

The court issued notice to the defendants and sought their replies within a period ofn four weeks.

Title: ORAVEL STAYS LIMITED v. NINE NETWORK PRIVATE LIMITED & ORS.

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