Directions issued by Punjab and Haryana High Court to OLX quashed by Supreme Court

Tanvi Pilane

Published on: March 12, 2022 at 11:26 IST

Directions issued by the Punjab and Haryana High Court to OLX India for the adoption of a Screening Mechanism for Sellers Posting Advertisements were quashed by a Supreme Court Bench headed by Justice UU Lalit.

“There was no occasion for the High Court to Pass these directions, and more particularly, without hearing the Appellant”, the Bench remarked.

The High Court had directed the online platform, OLX to delete all advertisements on the platform and to relist them when a PDF file containing the following information had been uploaded along with the advertisement:

1. Minimum Two Identity Proofs of any person selling their Property (Movable or Immovable) or any professional service on the platform.
2. Two Mobile Numbers with a screenshot/photocopy of the message sent by the server, who issued the SIM verifying the name of the owner as per their record.
3. Detailed Specifications of the Property being sold and a document of the title like Registration Certificate or insurance paper for vehicles or sale deed etc. for the property.
4. 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 not involved in any such or similar Criminal Case and is a genuine Owner of the Property.

The High Court issued these directions while considering a case of Impersonation by a Person to upload an advertisement for the sale of a property on the online platform.

OLX submitted before the Supreme Court that it is only providing the service of an internet platform where advertisements can be made solicited responses by people wishing to sell their property.

The Platform is only an intermediary. OLX contended that it is not liable to guarantee the quality of the merchandise put up for sale on the platform and it is not possible for the company to certify the legitimacy of the sellers on the platform.

The Bench refused on these contentions as when quashing the directions issued by the High Court as the matter was still pending before the High Court.

Also read:

Cyber Squatting and Hampering Goodwill- IPR

A Study of Ancestral Property in India