Companies cannot rely on right to privacy

In Petronet LNG Limited v Indian Petro Group & Anr, Delhi High Court was asked to decide whether the right to freedom of speech and expression overrides the right of privacy and confidentiality. Petronet LNG alleged that Indian Petro Group (IPG) had published confidential information about Petronet on its website, violating the company’s right to privacy and seriously affecting its commercial negotiations with other parties.

With reference to the first contention, the court held that a juristic entity, such as a company, was not entitled to the right to privacy under the “right to life” in article 21 of the Constitution of India. However, the court held that it was IPG’s responsibility to hold Petronet’s information in confidence if Petronet was able to prove that the relevant information was confidential in nature.

While examining the facts of the case, however, the court found that 50% of Petronet’s shares were held by public sector companies, and that Petronet therefore fell 1% short of the threshold for being classified as a public sector company. The court further found that Petronet was responsible for importing natural gas for India’s consumption, making its activities publicly important. The court therefore held that IPG’s freedom of speech and expression under article 19(1)(a) of the Indian constitution had to be protected and that it was not liable for any breach of confidentiality.

The legislative and regulatory update is compiled by Nishith Desai Associates, a Mumbai-based law firm. The authors can be contacted at nishith@nishithdesai.com. Readers should not act on the basis of this information without seeking professional legal advice.