Court finds failure in establishing "bad faith" in the domain name transfer order, aligning with INDRP guidelines.
In a significant ruling, the Delhi High Court has set aside an arbitral award directing the transfer of the domain name "www.exceltotally.in" from Mr. Pathan Imrankhan Zafarullakhan and Anr. to Microsoft Corporation. The judgment, delivered by Justice Harish Vaidyanathan Shankar, emphasized the mandatory requirement of independently establishing "bad faith" under the IN Domain Name Dispute Resolution Policy (INDRP) before transferring a domain name.
The case, initiated under Section 34 of the Arbitration and Conciliation Act, 1996, challenged the arbitral award dated March 2, 2026, which was rendered by an arbitrator under the INDRP framework. The petitioners, Mr. Pathan Imrankhan Zafarullakhan and another party, contended that the arbitrator failed to substantively evaluate whether their registration of the domain name was in bad faith, as required by Clauses 4 and 7 of the INDRP.
The court scrutinized the arbitral award, finding that the arbitrator erroneously assumed that establishing confusing similarity between the domain name "exceltotally.in" and Microsoft's trademark "EXCEL" was sufficient to prove bad faith. Justice Shankar highlighted that bad faith is a distinct and independent requirement under the INDRP, necessitating evidence of intentional deception or exploitation of goodwill, which was not adequately demonstrated in the arbitral award.
Furthermore, the court noted that the INDRP framework, which mirrors international standards for domain name dispute resolution, mandates a comprehensive examination of the registrant's intent and actions. The absence of such an analysis in the arbitral award led the court to conclude that the award was unsustainable and in violation of the fundamental policy of Indian law.
The judgment reaffirms the importance of adhering to procedural and substantive requirements in domain name disputes, ensuring that decisions are based on a thorough examination of evidence and adherence to established legal standards.
Bottom line:-
Arbitration - Domain Name Dispute Resolution under INDRP - Mandatory requirement of independent examination of "bad faith" under Clause 4(c) read with Clause 7 of the INDRP framework before transferring domain name.
Statutory provision(s): Arbitration and Conciliation Act, 1996 Section 34, IN Domain Name Dispute Resolution Policy (INDRP) Clauses 4 and 7.
Mr Pathan Imrankhan Zafarullakhan v. Microsoft Corporation, (Delhi) : Law Finder Doc id # 2913011
