Delhi High Court - Orders
(23) Amway India Enterprises Pvt. Ltd vs 1Mg Technologies Pvt. Ltd. & Anr on 13 February, 2023
Author: Sachin Datta
Bench: Sachin Datta
$~23, 24, 25, 26, 27, 28
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ CS(OS) 410/2018
(23) AMWAY INDIA ENTERPRISES PVT. LTD. ..... Plaintiff
Through: Ms. Priya Adlakha, Mrs. Bindra
Rana, Ms. Tanvi Bhatnagar and Ms.
Rima Majumdar, Advs.
versus
1MG TECHNOLOGIES PVT. LTD. & ANR. ..... Defendants
Through: Mr. Sagar Chandra, Mr. Shubhie
Wahi and Ms. Ankita Seth, Advs. for
D-1.
+ CS(OS) 453/2018
(24) AMWAY INDIA ENTERPRISES PVT. LTD. ..... Plaintiff
Through: Ms. Priya Adlakha, Mrs. Bindra
Rana, Ms. Tanvi Bhatnagar and Ms.
Rima Majumdar, Advs.
versus
ADINATH ENTERPRISES & ORS. ..... Defendants
Through: Ms. Shwetashree Majumdar and Mr.
Prithvi Gulati, Advs. for D-9.
+ CS(OS) 480/2018
(25) AMWAY INDIA ENTERPRISES PVT. LTD. ..... Plaintiff
Through: Mr. Priya Kumar and Mr. Shailabh
Tiwari, Advs.
versus
PIONEERING PRODUCTS & ORS. ..... Defendant
Through: Mr. Nishchal Anand and Ms. Tanvi
Signature Not Verified
Digitally Signed
By:RADHA BISHT
Signing Date:20.02.2023
11:08:18
Jain, Advs.
Ms. Sneha Jain, Ms. Savni D.
Endlaw, Mr. Devvrat Joshi and Ms.
Anjali Agrawal, Advs. for D-4.
+ CS(OS) 531/2018
(26) AMWAY INDIA ENTERPRISES PVT LTD. ..... Plaintiff
Through: Mr. Priya Kumar and Mr. Shailabh
Tiwari, Advs.
versus
FLIPKART INTERNET PVT LTD. & ORS. ..... Defendants
Through: Mr. Ankur Sangal, Mr. Ankit Arvind
and Mr. Kiratraj Sadana, Advs. for
D-1.
+ CS(OS) 550/2018
(27) AMWAY INDIA ENTERPRISES PVT. LTD. ..... Plaintiff
Through: Ms. Priya Adlakha, Mrs. Bindra
Rana, Ms. Tanvi Bhatnagar and Ms.
Rima Majumdar, Advs.
versus
BRIGHT LIFECARE PRIVATE LIMITED ..... Defendant
Through: Mr. Sagar Chandra, Mr. Shubhie
Wahi and Ms. Ankita Seth, Advs. for
D-1.
+ CS(OS) 91/2019
(28) ORIFLAME INDIA PVT. LTD. ..... Plaintiff
Through: Mr. Mahesh B. Chibber, Adv.
versus
DINENDER JAIN & OTHERS ..... Defendants
Signature Not Verified
Digitally Signed
By:RADHA BISHT
Signing Date:20.02.2023
11:08:18
Through: Mr. Nishchal Anand and Ms. Tanvi
Jain, Advs.
Ms. Sneha Jain, Ms. Savni D.
Endlaw, Mr. Abhiti Vachher, Mr.
Devvrat Joshi and Ms. Anjali
Agrawal, Advs. for D-6
CORAM:
HON'BLE MR. JUSTICE SACHIN DATTA
ORDER
% 13.02.2023 IA No.1860/2023 in CS(OS) 410/2018 IA No.1859/2023 in CS(OS) 453/2018 IA No.1883/2023 in CS(OS) 480/2018 IA No.1866/2023 in CS(OS) 531/2018 IA No.1861/2023 in CS(OS) 550/2018 IA No.2752/2023 in CS(OS) 91/2019
1. These are applications filed by the plaintiff under Order 23 Rule 1 read with Section 151 Code of Civil Procedure, 1908 seeking withdrawal of the present suit.
2. It is submitted on behalf of learned counsel appearing for the applicant that during the pendency of the suit, the Consumer Protection Act, 2019 was enacted by the Parliament, repealing the Consumer Protection Act, 1986. Under the new Act, the Consumer Protection (E-Commerce) Rules, 2020 were also enacted, which came into force on July 23, 2020. Rule 5(3) of the said Rules, imposes a liability upon the marketplace ecommerce entity, to display the information of the seller of goods, in a prominent manner on its platform. The said Rule was not present in the existing Information Technology (Intermediary Guidelines) 2011, which is also applicable to Signature Not Verified Digitally Signed By:RADHA BISHT Signing Date:20.02.2023 11:08:18 intermediaries including e-commerce marketplaces.
3. It is further submitted that on December 28, 2021, the Ministry of Consumer Affairs, Food and Public Distribution, also notified the Consumer Protection (Direct Selling) Rules, 2021 in the official Gazette. Therefore, the Direct Selling Guidelines, regulating the business of Direct Selling and Multi-level Marketing, have now been notified as Rules under the Consumer Protection Act, 2019 and become a law.
4. It is pointed out that in the notified Consumer Protection (Direct Selling) Rules, 2021, clause 7(6) of the Direct Selling Guidelines, 2016, which prohibits the sale of goods of a Direct Selling Entity, without its permission, has been omitted and it now provides that the goods/services of a Direct Selling Entity shall be sold by Direct Seller under "a prior written contract".
5. It is further submitted that in view of the aforementioned changes in the legislation, it would be expedient for the plaintiff to withdraw the present suit with liberty to file afresh in respect of the subject matter, instead of carrying out copious amendments.
6. It is submitted that the change in legislation constitutes sufficient ground under Order 23 Rule 1 (3) of Code of Civil Procedure, 1908.
7. Learned counsel for the defendants/non-applicants contends that the cause of action on the basis of which the suit was originally filed, no longer subsists. Learned counsel for defendants/non-applicants have strenuously expressed their apprehension that if any liberty is granted by this court to the plaintiff to file afresh, the same would be misconstrued as validating a cause of action, which no longer subsists.
8. Having considered the averments made in the application and the Signature Not Verified Digitally Signed By:RADHA BISHT Signing Date:20.02.2023 11:08:18 submissions made by respective counsel, the plaintiff is permitted to withdraw the present suit with liberty to file afresh based on any subsisting or fresh cause of action.
9. It is clarified that while granting the aforesaid liberty to the plaintiff, this court has not expressed any opinion as to whether any fresh suit that may be filed, would be maintainable or not. Any and all objections raised by the defendants/non-applicants in this regard are kept open to be considered if and when any fresh suit is filed by the plaintiffs. The liberty granted should not be construed as an expression of opinion of this Court as to whether any cause of action survives or continues.
10. The instant application is allowed, in terms of the aforesaid.
11. The instant suits, alongwith pending applications, stand dismissed as withdrawn with the aforesaid liberty, as prayed for.
SACHIN DATTA, J FEBRUARY 13, 2023/cl Signature Not Verified Digitally Signed By:RADHA BISHT Signing Date:20.02.2023 11:08:18