Introduction:
The Delhi High Court, in the case of Peak XV Partners Advisors India LLP & Anr. vs. John Doe & Ors. (CS(COMM) 71/2024), has granted a permanent injunction restraining unknown individuals from using the trademark of Peak XV Partners Advisors India LLP, a well-known venture capital and investment advisory firm. The Court found that fraudulent entities had created fake websites, apps, WhatsApp, and Telegram groups to deceive the public into believing they were affiliated with the firm. Justice Amit Bansal ruled in favour of Peak XV, emphasizing the malicious intent behind the use of the firm’s name and trademarks.
Arguments of Both Sides:
The plaintiff, Peak XV Partners Advisors India LLP (formerly Sequoia Capital India & SEA), contended that the unknown defendants were operating a fraudulent online investment and trading scheme. It was alleged that the impugned website, “https://pakxv.joyppp.com/,” and a mobile application named “PAK XV” were misleading consumers into believing they were legitimate investment platforms linked to Peak XV. The plaintiff provided evidence that these platforms falsely claimed to offer investment advisory services under the name “PAK XV,” which closely resembled the “PEAK XV” trademark. Additionally, a WhatsApp group titled “Peak XV⚽️1026” was being used for fraudulent investment promotions. The plaintiff argued that the use of such a deceptively similar name amounted to passing off and misrepresentation, damaging Peak XV’s reputation and misleading the public.
On the other hand, WhatsApp, one of the key platforms where the fraud was executed, argued that there was no concrete evidence showing that the alleged fraudulent accounts had posted misleading content from within Indian territory. It was contended that WhatsApp had no direct role in the misrepresentation and that the plaintiff failed to establish a direct link between the administrators of the fraudulent groups and Peak XV. The platform maintained that it was willing to cooperate with legal authorities but required substantial proof before taking further action against specific accounts.
Court’s Judgment:
After reviewing the evidence, the Court noted that the fraudulent entities had used Peak XV’s name and goodwill with the clear intent to deceive and defraud investors. The Court emphasized that the fake website and mobile application were designed to create an illusion of legitimacy, leading consumers to believe they were engaging with Peak XV’s authorized investment services. The Court had previously issued an ex parte ad interim order on January 24, 2024, restraining the unknown defendants from using Peak XV’s trademarks. Subsequently, WhatsApp was directed to remove the fraudulent groups and block access to the implicated mobile numbers.
On March 12, 2024, WhatsApp argued that it lacked evidence of fraudulent messages originating within India. However, the Court found prima facie that the group administrators were working in collusion and directed WhatsApp to submit the Basic Subscriber Information of the implicated accounts in a sealed cover.
Proceeding with a summary judgment under Order 8 Rule 10 CPC due to the non-filing of a written statement by the defendants, the Court found that a clear case of passing off was made out. The Court observed that the defendants had unfairly capitalized on Peak XV’s reputation and goodwill, misleading the public into believing that their fraudulent platforms were legitimate. Consequently, the Court granted a permanent injunction restraining the unknown defendants from using Peak XV’s trademarks and misrepresenting their services.