'Attempt To Defraud Public': Delhi HC Permanently Restrains Fraudulent Websites, WhatsApp Groups From Passing Off Peak XV Partners' Trademark

Justice Amit Bansal observed that the unknown defendants used Peak XV's name and marks with a clear intent to defraud and deceive the public. The court stated that the creation of the website, apps and social media accounts has created confusion, leading the public to believe that such groups and accounts are associated with Peak XV.

“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 which they claim are associated with the plaintiff. The unauthorized actions of defendant no.1, including the creation and operation of fraudulent WhatsApp/Telegram groups, websites and mobile apps, have given rise to substantial confusion, leading individuals to falsely believe that the impugned groups and website are authorized, associated, and affiliated with the plaintiff.”

Peak XV Partners Advisors India LLP (plaintiff), formerly Sequoia Capital India & SEA, filed the present suit against various unknown persons alleging that a fraudulent online investment and trading scheme was orchestrated by them.

It was submitted that unknown defendants operated the fake website and mobile application “https://pakxv.joyppp.com/” and “PAK XV”, where unwary consumers were offered multiple investment options but the returns were not received by the investors.

Peak XV alleged that the unknown individuals were using the name “PAK XV”, which was deceptively similar to its “PEAK XV” trademark to lure the consumers. It was further claimed that the impugned website was offering an option for customer service through WhatsApp group titled “Peak XV⚽️1026”.

On January 24 2024, the Court had issued an ex parte ad interim order, where the unknown defendants were restrained from using Peak XV's trademarks. Further, Meta was directed to delete the WhatsApp groups and to remove or block access to the WhatsApp accounts of the mobile numbers of the defendant.

On 12 March 2024, WhatsApp had argued that there was no material to show that the WhatsApp accounts had posted messages resembling the impugned content in the group titled “Peak XV 1026” within the Indian territory. However, the Court had observed that prima facie, the owners of all the phone numbers, who were the group administrators of WhatsApp group, were working in collusion with one another. It had directed WhatsApp to file in a sealed cover the Basic Subscriber Information relating to the WhatsApp accounts of the mobile numbers as available with it.

In the present suit, the Court proceeded with a summary judgment under Order 8 Rule 10 CPC as no written statement was filed by the defendants.

Comparing Peak XV's website and the impugned website, the Court observed that a case of passing off was made out. It said that the unknown defendant took unfair advantage of the reputation and goodwill of Peak XV and deceived the public.

It thus granted a permanent injunction in favour of Peak VX, restraining the unknown defendant from using its trademarks.

Case title: Peak XV Partners Advisors India LLP & Anr. vs. John Doe & Ors.

Citation: 2025 LiveLaw (Del) 404