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2024 Supreme(Mad) 2246

IN THE HIGH COURT OF JUDICATURE AT MADRAS
R.MAHADEVAN, MOHAMMED SHAFFIQ, JJ.
Reckitt Benckiser (India) Private Limited - Appellant
Versus
The Advertising Standards Council of India - Respondent
O.S.A. Nos.242 and 243 of 2023 and C.M.P. Nos.28580, 28581, 28582, 28583 and 28585 of 2023
Decided on : 17-05-2024

Advocates Appeared:
For the Appellant : Mr.Chandar Lal for Mr.A.B.Rajasekaran
For the Respondents:Ms.Avni Singh, Mr.P.S.Raman Senior Advocate for Mr.M.S.Barath (for R2)

The court affirmed that the ASCI's order, while recommendatory, gives rise to a cause of action, and part of it arises within Tamil Nadu, thus making the suit maintainable.

Headnote:(A) Companies Act, 1956 - Section 25 - Advertising Standards Council of India (ASCI) Code - Interim injunction - Appellant challenged the rejection of applications for interim injunction against ASCI's order to withdraw advertisements, claiming violation of fundamental rights and lack of cause of action - Court found ASCI's order to be recommendatory, not binding, and that the suit was maintainable as part of the cause of action arose in Tamil Nadu. (Paras 2.19, 2.20, 11.1)

(B) Jurisdiction - The court held that the impugned order of ASCI gives rise to a cause of action, and part of it arises within Tamil Nadu, thus the suit is maintainable. (Paras 7.1, 9.1)

(C) Fundamental Rights - The court emphasized that the right to commercial advertisement is a fundamental right under Article 19(1)(a) of the Constitution, and any infringement thereof can be challenged in court. (Paras 7.24, 7.27)

(D) Forum Shopping - The court rejected the notion of forum shopping, affirming that the plaintiff can choose the court where a part of the cause of action arises. (Paras 6.6, 9.1)

Findings of Court:
The learned Judge's order rejecting the applications for interim injunction was found to be erroneous, and the matter was remanded for consideration on merits.

Issues: The main issues were whether the ASCI's order gives rise to a cause of action and whether the suit is maintainable in Tamil Nadu.

Ratio Decidendi: The court ruled that the ASCI's order, while recommendatory, imposes a real threat to the appellant's rights, thus giving rise to a cause of action.

Result: The order of the learned Judge was set aside, and the matter was remanded for further consideration.

JUDGMENT :

MOHAMMED SHAFFIQ, J.

Prayer: Original Side Appeals filed under Order XXXVI Rule 1 of Original Side Rules read with Clause 15 of Letters Patent praying to set side the order of this Court dated 16.11.2023 made in O.A.Nos.563 and 564 of 2023 in C.S.No.110 of 2023.

These Original Side Appeals have been filed challenging the order of the learned Judge insofar as it rejects the applications filed by the appellant herein praying for interim injunction restraining the 1st respondent/defendant from creating impediments in the broadcasting of the advertisement of the appellant/plaintiff which is the subject matter of the suit and from entertaining or adjudicating upon the complaints against the advertisement of the appellant/plaintiff on the premise that the suit has been filed without any cause of action and jurisdiction.

2. BRIEF FACTS:

a) About the parties to the proceeding :

2.1. Reckitt Benckiser (India) Private Limited viz., the appellant herein, is an internationally renowned corporation and through its subsidiaries and affiliate companies operate in several countries around the world. The business comprises of manufacture and sales of various consumer and health care products including antiseptic liquid, toilet care products, surface care products, pharmaceuticals, insecticides and food products which bear trademarks. Some of them being DETTOL, HARPIC, VEET, MORTEIN and CHERRY BLOSSOM. The appellant is involved in the manufacture of mosquito repellents and Rat Kill products for over 150 years.

2.2. Advertisement Standard Council of India (hereinafter referred to as “ASCI”) viz., the 1st respondent herein is a Company registered under Section 25 of the Companies Act, 1956, having its permanent office in Mumbai. It is stated that it is a not-for-profit company founded in the year 1985 as a “voluntary self-regulation body for the advertising industry”. It is further stated that ASCI has been in existence for more than 35 years and has been monitoring, administering and promoting the standards of advertising practices in India. It scrutinizes advertisements in all mediums including Digital Space such as Television, YouTube etc.

2.3. It is stated that the main constituents of the advertising industry viz., advertisers, advertising agencies, media and allied/ancillary trades and professions associated with advertising came together to establish ASCI. ASCI has created a Code for Self-regulation of Advertising Content in India (hereinafter referred to as “ASCI Code”) based on global best practices and is universal in appeal and application. Its object is to promote high standards of advertising practice in India and to protect consumer interest in respect of truthfulness and honesty of representations and claims made through advertisements. It may be relevant to note that the advertising code of selfregulatory bodies takes varying forms in different countries, but its underlying ethos remains the same; that an advertisement should be legal, honest and truthful and ought to follow generally accepted norms and standards of public decency.

2.4. ASCI provides a machinery through an independent body which is known as the Consumer Complaints Council ("CCC") which examines complaints received against advertisements in terms of the ASCI Code. The CCC of ASCI comprises a majority of members from the civil society who are members of repute and eminence and represent diverse groups such as consumers, youth activists, lawyers, educationists, consultants, journalists, doctors etc. While the ASCI Code lays down guidelines which ought to be followed in the creation, publication, broadcast etc., of advertisements, the CCC receives and examines complaints against advertisements and makes recommendations in tune with the ASCI Code. The 1st Respondent herein seeks to ensure that advertisements conform to the ASCI Code. The Fast Track Complaints Procedure (hereinafter referred to as “FTCP”) is a mechanism adopted by the 1st respondent for handling compl

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