A division bench of the Karnataka High Court, on Thursday, issued a stay on the single-judge order that directed X Corp (formerly Twitter) to pay Rs 50 lakh in costs for alleged delays in complying with content-blocking orders issued by India between February 2021 and 2022.
The division bench, comprising Chief Justice PB Varale and Justice MGS Kamal, issued the interim stay on the appeal filed by X Corp. However, the court emphasised that the stay should not be interpreted as a favourable judgment towards X Corp.
The stay order is contingent on X Corp depositing Rs 25 lakh with the court within a week to demonstrate its sincerity.
While the interim stay is in effect until the next hearing on X Corp's appeal, the microblogging platform is exempt from paying the fine on the condition that it deposits the specified amount within the designated timeframe.
The court scheduled the next hearing for August 24 and granted the Central government the opportunity to file objections and seek vacation of the interim stay if deemed necessary.
During the hearing, X Corp's legal representation assured the court that the platform was willing to pay a portion of the costs to exhibit its good faith. However, the court declined their request for an extension of the deposit deadline, commenting that the amount was relatively small for such a corporation.
The court further inquired about X Corp's compliance with the content-blocking orders and emphasised the importance of adhering to the country's laws. The court sought evidence of timely compliance with the orders and questioned whether such compliance had been communicated to the appropriate authorities.
X Corp responded by acknowledging compliance with most of the blocking orders but clarified that objections were raised and engagement with the Central government occurred in cases where compliance was not immediate. The company explained that it challenged specific orders through the High Court when disputes arose.
The court, however, noted that last-minute correspondence or attempts at compliance could not substitute actual adherence to the orders and emphasised that delays of over a year were concerning.
The appeal challenges a prior judgment issued by Justice Krishna S Dixit on June 30, where a substantial Rs 50 lakh fine was imposed on Twitter (X Corp) for allegedly failing to provide reasons for non-compliance with content removal demands from the Central government in a timely manner.
X Corp's appeal contends that the single-judge order could potentially grant the Central government unchecked authority, raising concerns about the impact on users' freedom of speech and expression. The bench has rejected the Central government's argument that Twitter's challenge to the judgment was not admissible in the High Court.
