Delhi High Court

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 CourtJUDGMENT: May 29, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

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

Source reference: p. 2, para 3

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

Source reference: p. 2-3, para 6, 10

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

Source reference: p. 3, para 8

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

Source reference: 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

Source reference: 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

Source reference: p. 4, para 13-17
02

Issues

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

Source reference: p. 9, para 39

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.

Source reference: p. 24, para 63-64
03

Law 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

Source reference: p. 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

Source reference: 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"

Source reference: p. 21-23, para 58-62
04

Reasoning

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

Source reference: 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

Source reference: p. 21-22, para 58-61; p. 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)

Source reference: p. 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

Source reference: p. 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

Source reference: p. 29, para 78; p. 32, para 80-81
05

Holding

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

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

Source reference: p. 40, para 96
Delhi High Court

Original Court PDF

Mr Pathan Imrankhan Zafarullakhan & Anr.vsMicrosoft Corporation

Delhi High Court · May 29, 2026

Click to open original judgment

Original judgment, available to read, download and summarize on LawLens.in

Click to open original judgment