Delhi High CourtArbitration and MediationIntellectual Property Law

Establishing Independent Bad Faith is Mandatory under INDRP; Confusing Similarity Alone Cannnot Sustain Domain Name Transfer

Mr Pathan Imrankhan Zafarullakhan & Anr.v.Microsoft Corporation

Establishing Independent Bad Faith is Mandatory under INDRP; Confusing Similarity Alone Cannnot Sustain Domain Name Transfer. Mr Pathan Imrankhan Zafarullakhan & Anr. vs Microsoft Corporation. Delhi High Court. LawLens
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In brief

The question

Whether the Impugned Arbitral Award was vitiated by a violation of the principles of natural justice due to improper service of notice.

The court held

The Court held that the Impugned Arbitral Award suffered from a foundational jurisdictional infirmity by failing to independently establish "bad faith" as mandated by Clause 4(c) of the INDRP

It also directed

The Court set aside the Arbitral Award dated 02.03.2026, finding it legally unsustainable under Section 34(2)(b)(ii) of the Act

01Facts

The Petitioners provide software solutions for data transfer between Microsoft Excel and Tally, using the domain name www.exceltotally.in since 2010

p. 2, para 3

The Respondent, owner of the "EXCEL" trademark, alleged that the domain name was confusingly similar and adopted in bad faith

pp. 2-3, para 6, 10

Following a cease-and-desist notice, the Petitioners withdrew their trademark application and added a disclaimer of non-affiliation

p. 3, para 8

The Respondent invoked the .IN Domain Name Dispute Resolution Policy (INDRP) before the National Internet Exchange of India (NIXI)

p. 3, para 10

The Sole Arbitrator passed an ex parte award on 02.03.2026, directing the transfer of the domain name to the Respondent

p. 3, para 11

The Petitioners challenged the award under Section 34 of the Arbitration and Conciliation Act, 1996, alleging lack of proper service and misapplication of the INDRP framework

pp. 4, para 13-17

02Issues

i.Whether the Impugned Arbitral Award was vitiated by a violation of the principles of natural justice due to improper service of notice.

p. 9, para 39

ii.Whether the learned Arbitrator erred in law by failing to independently establish "bad faith" as a mandatory jurisdictional requirement under Clause 4(c) of the INDRP.

pp. 24, para 63-64

03Law Applied

Section 34 of the Arbitration and Conciliation Act, 1996, which limits judicial interference in international commercial arbitrations to grounds of public policy and fundamental policy of Indian law

pp. 11-13, para 46-50

The Supreme Court’s rulings in Ssangyong Engineering & Construction Co. Ltd. v. NHAI, abolishing "patent illegality" as a ground for international awards

p. 11, para 46

Clauses 4, 6, and 7 of the .IN Domain Name Dispute Resolution Policy (INDRP), which require a complainant to cumulatively prove: (i) identical/confusing similarity, (ii) lack of legitimate interest, and (iii) registration or use in "bad faith"

pp. 21-23, para 58-62

Provisions in the judgment · 8 · Linked ones open on LawLens

Arbitration and Conciliation Act, 1996 Section 2Section 18Section 31Section 34Section 48Section 75Section 81

Indian Contract Act, 1872 Section 23

04Reasoning

Regarding the procedural challenge, the court found no violation of natural justice as notices were sent to the email registered with the domain; a registrant cannot claim lack of service by failing to monitor their own contact details

p. 10, para 42

On the merits, the court observed that the INDRP uses the conjunctive "and" in Clause 4, making the three requirements (similarity, lack of interest, and bad faith) cumulative

pp. 21-22, para 58-61 · pp. 26-27, para 72

The court analyzed the Arbitrator's reasoning and found that the Arbitrator conflated "confusing similarity" under Clause 4(a) with "bad faith" under Clause 4(c)

pp. 28, para 75-76

The court emphasized that Clause 7 of the INDRP requires proof of intentional conduct—such as a calculated design to mislead users for commercial gain or disrupt a competitor

pp. 25-26, para 69-71

The court held that the Arbitrator failed to conduct an independent evidentiary inquiry into the Petitioners' intent, especially considering their descriptive use of the mark for interoperability and their subsequent bona fide conduct

p. 29, para 78 · pp. 32, para 80-81

05Holding

The Court held that the Impugned Arbitral Award suffered from a foundational jurisdictional infirmity by failing to independently establish "bad faith" as mandated by Clause 4(c) of the INDRP

pp. 37, para 87-89

The Court set aside the Arbitral Award dated 02.03.2026, finding it legally unsustainable under Section 34(2)(b)(ii) of the Act

p. 40, para 96
Delhi High Court

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Mr Pathan Imrankhan Zafarullakhan & Anr.vsMicrosoft Corporation

Delhi High Court · May 29, 2026

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