In a landmark judgment, the Delhi High Court has issued a permanent injunction against unknown individuals who were fraudulently using the 'Peak XV Partners' trademark through fake websites, mobile applications, WhatsApp, and Telegram groups.
The case was filed by Peak XV Partners Advisors India LLP, a leading venture capital and investment advisory firm, previously known as Sequoia Capital India & SEA. The company approached the court after discovering that certain unknown individuals were operating under a deceptively similar name, "PAK XV," to mislead the public into fraudulent investment schemes.
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Justice Amit Bansal, who presided over the case, found that these fraudulent platforms were designed to trick unsuspecting investors into believing they were associated with Peak XV. The court observed:
"The plaintiff's name and marks have been used by defendant no.1 with the clear intent to defraud and deceive the public. It is apparent that defendant no.1 is attempting to defraud the public by falsely claiming to offer investment advice through WhatsApp/Telegram groups, website, and mobile applications under the plaintiff’s name."
This unauthorized use created substantial confusion, leading many to believe that these WhatsApp and Telegram groups were officially affiliated with Peak XV.
The fake website and mobile application in question, "https://pakxv.joyppp.com/" and "PAK XV," offered multiple investment opportunities. However, investors never received returns on their investments.
Peak XV alleged that these fraudsters:
- Used a deceptively similar name ("PAK XV") to mislead the public
- Ran investment scams where investors lost their money
- Operated fake WhatsApp groups like "Peak XV⚽️1026" to further their scheme
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Recognizing the fraudulent intent, the Delhi HC issued an interim injunction on January 24, 2024, restraining the unknown defendants from misusing Peak XV's trademarks.
WhatsApp initially argued on March 12, 2024, that there was no evidence proving that messages resembling the fraudulent scheme were sent from within India. However, the court found that:
"Prima facie, the owners of all the phone numbers, who were the group administrators of the WhatsApp group, were working in collusion with one another."
The court then directed WhatsApp to submit Basic Subscriber Information (BSI) in a sealed cover for all WhatsApp accounts linked to the fraudulent scheme.
Since the defendants failed to file a written statement, the court proceeded with a summary judgment under Order 8 Rule 10 of CPC. Upon comparing Peak XV’s official website with the fraudulent one, the court ruled that the fraudsters were guilty of passing off and had unfairly exploited Peak XV’s goodwill.
As a result, the Delhi High Court granted a permanent injunction, restraining the unknown defendants from using Peak XV’s trademarks in any manner.
Case Title: Peak XV Partners Advisors India LLP & Anr. vs. John Doe & Ors. (CS(COMM) 71/2024)
