The Apex Court has stayed the directions issued by the High Court of Punjab & Haryana to OLX India to adopt a screening mechanism with respect to the sellers who could post an advertisement on its platform.
A Bench of Justices UU Lalit, S Ravindra Bhat and Bela M Trivedi stayed the direction of the HC & also issued notice on OLX's appeal.
The Order said, "Issue notice. Returnable on March 4, 2022. Pending further consideration, the effect & operation of the order under challenge to the extent it issued certain directions against & in relation to the petitioner shall remain stayed".
The Bench was hearing a plea against the Dec 12, 2021 Punjab & Haryana HC order which had passed directions against OLX while considering a case of a person impersonating another to upload a sale advertisement in the OLX platform.
The HC had issued directions to OLX to delete & re-list all the advertisements on the platform only after attaching an open PDF file along with each advertisement, containing the following: at least two ID proofs of the person, who is proposing to sell a property (moveable or immoveable) or asking any professional service; 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; details of the property to be sold whether moveable or immoveable & a document of title like Registration Certificate or insurance paper for vehicles or sale deed etc for property, among others.
It had said that only by putting this information in a PDF file, the advertisements will be accepted by OLX or any other such agency & will be floated for the general public.
The petition in the Supreme Court said, "OLX Platform being an online marketplace, essentially connects sellers with potential buyers & is nothing more than a passive conduit between a buyer & a seller similar to the classifieds column of a newspaper. It is for the passive role played by the Platform that it qualifies as an "intermediary" as defined under Section 2(1)(w) of the Information Technology Act 2000."
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