Karnataka High Court stays ₹50 lakh fine order against Twitter; stay subject to deposit of ₹25 lakh with the Court

A division bench of the Karnataka High Court on Thursday stayed the single-judge order directing Twitter (now X Corp) to cough up ₹50 lakhs as costs for its apparent failure to ensure timely compliance with certain content-blocking orders issued by the Indian government between February 2021 and 2022. .Pertinently, the Court's order of stay is subject to the condition that X Corp deposits with the court an amount of ₹25 lakh within a week's time to show its bonafides. A bench of Chief Justice PB Varale and Justice MGS Kamal passed the interim order on an appeal filed by X Corp. The Court, however, clarified that the interim order should not be construed as there being any equity in favour of X Corp. "We further make it clear that permission to deposit part of costs to the tune of ₹25 lakhs may not be treated as acceptance by this Court that some equity lies in favour of the appellant (Twitter/ X Corp). This is only on statement made by appellant that to show bonafides, that appellant would deposit a part of costs," the order stated. The interim order of stay will continue till the next date of hearing in X Corp's appeal, which has challenged the single-judge's dismissal of its earlier writ petition as well as the ₹50 lakhs costs imposed. The single-judge had ordered Twitter to pay up the ₹50 lakh cost by August 14, or risk having to pay an additional fine of ₹5,000 per day for delay beyond this date. With today's interim order, the microblogging platform need not pay up the fine on these terms, provided that it deposits an amount of ₹25 lakh within a week. The matter will be heard next on August 24. In the meantime, the Court permitted the Central government to file its objections and apply for a vacation of this interim order, if required. .The Court passed the order after noting that the counsel representing X Corp, on instructions, submitted that the social media platform is willing to pay a part of the costs to show its good faith. Although the counsel later sought more time to make the deposit of ₹25 lakhs, the Court declined to accede to such a request. "For your entity (Twitter/ X Corp), it is a small amount! The business must be more than multiple crores for a week. Your corporation is a big giant! They can deposit this amount in one day. One week is more than sufficient for them," the Court orally remarked. .Hearing today.The hearing today saw the Court question X Corp on whether it has shown any statement in the initial writ petition or the appeal that it has complied in a timely manner with the Indian government's demand to block certain content. The Court orally remarked that no indulgence could be granted if X Corp is showing scant regard for the laws of the country. "You show yourself that this order, this content, which was directed to be blocked, is accordingly complied with. You can certainly show this was communicated to authority .. Please tell us any statement that 'my compliance' reported to this authority! Where is the statement?" the Court asked.X Corp responded by pointing out that it has complied with a vast majority of the blocking orders and that it is only with respect to a few orders that it did not comply. This was because the platform had objected to those orders and was engaging with the Central government over these specific orders. The counsel added that when the Central government later demanded for compliance, Twitter approached the High Court to challenge these orders without delay. The Court, however, responded by pointing out that such correspondence or last opportunities to comply cannot be equated with compliance. The judges noted that there seemed to be a delay of about 1 year and 4 months in complying with a February 2021 order. "The concession is not to be treated as a right to be accrued in the party's favour. Giving last opportunity is not that you have a right to delay the compliance!" the Court orally remarked. The Court today also refused to accede to the Central government's stance that Twitter's challenge itself could not be heard by the High Court. "Your submission that very petition is not maintainable has been negated by the learned single judge. Though it is dismissed on some other ground, you have not challenged that. To say that he (Twitter) has no say at all, that is not right," the bench pointed out. .Background.The appeal before the Court challenges a June 30 judgment rendered by Justice Krishna S Dixit, who had slapped a whopping ₹50 lakh fine on Twitter, after finding that it did not give reasons for not complying with the Central government's demands to take down content and block Twitter handles in a timely manner.In its appeal, X Corp has contended that the single-judge order would permit the Central government to act arbitrarily, which could have devastating effects on a user's freedom of speech and expression. .[Read live coverage of today's hearing].[Read Order]