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A single bench of Justice Suraj Govindaraj has ruled that an intermediary will not be liable for any action or inaction on part of the sellers or vendors who are making use of the facilities provided by the intermediary in terms of an online marketplace.
The Drug Inspector filed a Complaint against Snapdeal, an online marketplace, where it is alleged that Snapdeal allowed a sale of tablets and provided a platform to the buyer and seller, which was a violation under Section 18(c) of the Drugs and Cosmetics, 1949. Mr. Amandeep, proprietor of Adept Biocare had created a Snapdeal seller account for listing and selling a product namely – SUHAGRA-100 Tablets (Sildenafil Citrate Tablets). The said complaint was filed after nearly six years when the order was delivered.
In a petition filed by the Directors of Snapdeal, the petitioner seeking relief from the order of cognizance and the complaint. The petitioners contended that if all the contents of the Impugned Complaint are taken at their face value and accepted in their entirety, they do not prima facie constitute the commission of an offense by the petitioner.
petitioner also contended that the Impugned order being cognizable, is required to be passed only after due application of mind. It was submitted that Snapdeal is an intermediary, which is defined under Section 2(1)(w) of the Information Technology Act, 2000, and is therefore entitled to the exemption from liability under Section 79 of Information Technology Act, 2000.
The respondent – Prosecution submitted that the order of cognizance is proper and correct. They also argued that the Mysore court must have the jurisdiction as the transaction took place over there. It was irrespective of whether Snapdeal is an intermediary or not, a sale of prohibited items took place, hence an offense was committed.
The High Court of Karnataka quashed the complaint against Snapdeal and also held that an intermediary defined under section 2(1) will not be held responsible and/or liable for the sale of any item not complying with the requirements under the Drugs and Cosmetics Act, 1949 on its platform as the essential ingredients of Section 18(1)(c) of the Act is not been fulfilled.
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