Delhi High Court grants interim order against Skoch

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On January 17, 2025, the Hon’ble High Court of Delhi granted an ad interim injunction in favor of Play Games24x7, a prominent player in the Indian online gaming sector, protecting its intellectual property rights and reputation. The injunction was issued following a legal battle between Play Games24x7 and Skoch Group over a controversial advertisement that ranked its flagship games, RummyCircle and My11Circle, unfavorably.

The case, titled Play Games24x7 v. Skoch Group and Ors. (CS(Comm) 41/2025, revolves around a publication by Skoch Group on December 23, 2024, which was featured in the Mint newspaper and online. The advertisement presented a self-created ranking of various online gaming platforms, including RummyCircle and My11Circle, placing them lower than their competitors. The ranking system was described as “self-serving” and “arbitrary,” and Play Games24x7 contended that the rankings were unfairly designed to disparage its games and harm its reputation.

Play Games24x7, in its petition, challenged the legitimacy and fairness of the advertisement, accusing Skoch Group of using a biased and subjective ranking mechanism. The company argued that the rankings cast aspersions on the safety, efficacy, and reputation of its games, which are among the most popular online gaming platforms in India. RummyCircle is known as one of the largest online rummy platforms, while My11Circle is a leading fantasy sports platform.

One of the central allegations in the lawsuit was that the ranking system used by Skoch Group was inherently flawed. The gaming platform asserted that the taskforce or jury responsible for the rankings included individuals who were directly connected to companies that were ranked higher than Play Games24x7’s platforms. Specifically, the jury members were alleged to be executives of Play Games24x7’s direct competitors, raising concerns of a clear conflict of interest and bias in the rankings. This, Play Games24x7 argued, led to an unjust and unfair evaluation of its games, intended to damage its reputation.

Furthermore, Play Games24x7 contended that the advertisement’s primary aim was not merely to present a neutral ranking but to promote Skoch Group’s consultancy services. By portraying certain gaming platforms as “non-compliant” or “subpar” based on subjective criteria, the advertisement allegedly created fear among gaming companies, urging them to engage Skoch Group’s services for compliance and ranking improvements. This, Play Games24x7 argued, amounted to commercial solicitation through defamation.

The company also pointed out that it had not given its consent for the use of its trademarks, RummyCircle and My11Circle, in the advertisement, nor had it participated in any evaluation process carried out by Skoch Group. Play Games24x7’s legal counsel emphasized that the company adheres to the highest industry standards, which include certifications from credible bodies like the E-Gaming Federation, a leading industry body that recognizes responsible gaming and regulatory compliance.

Delhi High Court Weighs in on the Legitimacy of Private Rankings and Defamation Claims

The Delhi High Court, after reviewing the submissions and evidence presented, found that Play Games24x7 had made out a prima facie case for the issuance of an interim injunction. The court noted that the rankings in the impugned advertisement appeared to unfairly undermine the reputation of Play Games24x7 and its games, particularly in light of the biased nature of the ranking system. The court also recognized that the advertisement had the potential to cause irreparable harm to Play Games24x7, especially since the advertisement was still circulating on multiple platforms.

The court observed that Skoch Group, as a private entity, lacked the authority to devise or enforce any compliance framework or ranking system. Unlike government bodies or industry regulators, Skoch Group had no formal mandate to evaluate or rank online gaming platforms, making their rankings arbitrary and without proper authority. The court further emphasized that the advertisement appeared to have been created primarily to promote Skoch Group’s consultancy services, indicating an intent to commercially benefit from the disparagement of Play Games24x7’s products.

In light of these findings, the court granted an interim injunction, ordering that Play Games24x7’s trademarks—RummyCircle and My11Circle—be redacted from the advertisement published by Skoch Group. The court also noted that any continued circulation of the advertisement would lead to further reputational damage to Play Games24x7, which could not be easily remedied. Therefore, the injunction was granted to protect the plaintiff from irreparable harm until a full hearing on the matter.

In response to the court’s ruling, Skoch Group, through its counsel, agreed to comply with the injunction. The defendants agreed to remove references to Play Games24x7’s trademarks from the advertisement on their website and other social media platforms. Furthermore, Skoch Group’s representatives clarified that the ranking exercise was a private initiative, and the rankings were not based on any formal regulatory framework, which the court acknowledged.

Despite this acknowledgment, the court emphasized that Skoch Group’s ranking system lacked neutrality, particularly in light of the involvement of individuals connected to the platforms ranked at the top. This raised concerns about the fairness and objectivity of the ranking process.

The court’s decision to grant the injunction marks a significant moment in the ongoing debate over transparency, fairness, and regulation in the online gaming sector. The case highlights the growing influence of ranking systems, advertisements, and third-party evaluations in shaping the reputation and success of gaming platforms. As the online gaming market in India continues to grow rapidly, platforms like Play Games24x7 are increasingly vulnerable to external rankings and evaluations, which can have a substantial impact on user perception and business opportunities.

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