A divisional bench of the Karnataka High Court (HC) has reportedly instructed X (formerly Twitter) to deposit INR 25 Lakh within a week to suspend the earlier INR 50 Lakh penalty imposed on the microblogging platform in June. This move comes after a single-judge bench of the HC quashed Twitter’s plea challenging multiple blocking orders issued by the IT Ministry.
Twitter- Legal Battle and Penalty Imposed
In June, the HC had not only rejected Twitter’s plea but also levied a fine of INR 50 Lakh on the company for non-compliance. The court directed Twitter to pay the fine within 45 days, warning of an additional INR 5,000 per day fine for any delay.
Twitter Approaches Divisional Bench
Approaching the divisional bench against the earlier decision, the platform, led by Elon Musk, sought reprieve from the penalty. The Chief Justice Prasanna Varale and Justice MGS Kamal-headed bench issued an interim order just a week ahead of the fine submission deadline.
Court’s Stance and Upcoming Proceedings
During the hearing, the court declined Twitter’s request for an extension to deposit the fine. The HC scheduled the next hearing for August 24, allowing the union government to present its objection and seek a vacation of the interim order if needed.
Divisional Bench Clarification on Penalty
The divisional bench clarified that the court’s acceptance of equity in favor of X Corp (formerly Twitter) should not be inferred from the reduced penalty. The court emphasized that the permission to deposit a portion of the costs doesn’t signify an endorsement of the appellant’s position, as per Bar and Bench.
The legal tussle dates back to a period preceding Elon Musk’s involvement in the company. In July 2022, Twitter had taken the Indian government to the Karnataka HC, contesting numerous content takedown orders issued by the Ministry of Electronics and Information Technology (MeitY) under Section 69A of the IT Act.
The government challenged Twitter’s standing, citing its foreign credentials, and contended that only Indian citizens could challenge fundamental rights to freedom. Eventually, the HC sided with the government, imposing a substantial penalty of INR 50 Lakh on the microblogging platform.
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