Now Reading: Delhi HC reserves order on HUL vs Beco jurisdiction plea
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Delhi HC reserves order on HUL vs Beco jurisdiction plea
The Delhi High Court on Monday reserved its order on whether it can hear Hindustan Unilever's plea against Beco over an advertising campaign that HUL alleges falsely portrays its Surf Excel and…
The Delhi High Court on Monday reserved its order on whether it can hear Hindustan Unilever's plea against Beco over an advertising campaign that HUL alleges falsely portrays its Surf Excel and Vim products.
HUL argued the court has jurisdiction because Beco's website is accessible in Delhi and allows purchases by city consumers. Beco countered that website accessibility alone does not constitute deliberate targeting, noting its principal place of business and advertisements are in Mumbai.
The court will first decide the jurisdictional issue before passing any interim order. The dispute centres on Section 20 of the Code of Civil Procedure, which allows a suit where the cause of action arises wholly or in part.
Indian Opinion Analysis
The core question is how the 'cause of action' test applies to digital advertising, where a campaign originates in one city but is viewable nationally. Under the Code of Civil Procedure, courts have long held that mere online accessibility is not enough, a plaintiff must show purposeful availment of the forum's market. If the court rules against HUL, it would reinforce that companies must file suits where the defendant is based or where the specific targeting occurred, not anywhere a website loads. The order, expected within weeks, will set a precedent for hundreds of similar jurisdiction disputes in internet-era trademark and defamation cases. The next hearing will announce the decision on jurisdiction.
Source: livemint.com
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