Thursday, January 27, 2022



Delhi HC seeks Centre’s response on plea challenging E-Commerce Rules

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New Delhi, Nov 23, 2020-
The Delhi High Court on Monday issued notice over a petition challenging the certain sections of the E-Commerce Rules which mandates e-commerce entities to incorporate as a company.

A division bench of the High Court presided by Justices D.N. Patel and Prateek Jalan sought response from the Central government and others over a plea filed by Dhruv Sethi through advocate Samyak Gangwal.

The plea challenges the vires of Rule 4(1)(a) of the Consumer Protection (E-Commerce) Rules, 2020.

The said rule mandates all e-commerce entities to incorporate as a company under the Companies Act, 2013.

The petitioner has claimed that he is personally affected by the impugned rule as he is an entrepreneur, who, through his sole proprietorship, Where Next Daily, sells custom merchandise online.

It is the case of the petitioner that, firstly, the impugned rule violates Article 19(1)(g) of the Constitution of India as it restricts the petitioner’s right to carry on trade through the medium of Internet.

During the course of the hearing, senior advocate Anand Grover appearing for the petitioner submitted that the obligation to incorporate as a company and the consequent exclusion of Sole Proprietorship, Limited Liability Partnerships, Hindu Undivided Families etc. from the e-commerce space, is neither reasonable, nor in the interests of the general public.

It was also argued that the impugned rule is violative of Article 14 of the Constitution of India as it discriminates against all forms of legitimate business organisations.

The court will now hear the matter next on December 21. (Agency)

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