HUL vs Beco ad case: Delhi HC reserves order on territorial jurisdiction

The Delhi High Court on Monday reserved its order on whether it can hear Hindustan Unilever Ltd’s (HUL) plea against Beco over an advertising campaign which HUL alleged wrongly portrayed its product Surf Excel and Vim Products.

During the hearing, senior counsel Amit Sibal, representing HUL, argued that the plea has a clear connection with Delhi because Beco’s website was accessible to consumers in the city and allowed them to purchase its products.

“This is the kind of evidence I would lead in the suit to establish that it was purposeful,” Sibal argued.

HUL is seeking an interim injunction restraining Beco from continuing its advertising campaign against Surf Excel and Vim, arguing that the campaign makes misleading claims about the products and harms HUL’s brands.

In response, Beco argued that a website's accessibility in Delhi does not mean the company has deliberately targeted the city. He also said that these are online advertisements and can be viewed nationwide.

In a previous hearing on Friday, Anup Jairam Bhambhani questioned whether merely making Beco’s social media posts and website available in Delhi could create a cause of action in the city. Beco’s counsel argued that HUL would have to show that Delhi consumers were specifically targeted.

The jurisdictional dispute centred largely on Section 20 of the Code of Civil Procedure (CPC), which permits a suit to be filed where the cause of action arises wholly or in part.

Queries sent to HUL and Beco on Friday have not elicited a response.

The campaign

Beco’s counsel, meanwhile, argued that the accessibility of an online campaign cannot give courts across the country jurisdiction. The company’s principal place of business and the physical advertisements at issue are in Mumbai.

Justice Bhambhani deferred to pass an interim order, stating that the issue of jurisdiction will be decided beforehand.

Mumbai-based Beco’s #WarOnWhatsHidden campaign targeted HUL’s Surf Excel and Vim Dishwash Gel, urging consumers to check the ingredients in everyday products.

The campaign uses outdoor ads and videos to highlight ingredients such as benzisothiazolinone (BIT) and linear alkylbenzene sulfonate (LAS) in HUL's products. Beco says its own laundry and dishwashing products are made without these ingredients.

Founded in 2019 by Aditya Ruia, Akshay Varma and Anuj Ruia, Beco makes eco-friendly home and personal care products, like dishwashing liquid, floor cleaner, laundry liquid, tissues and bamboo toothbrushes.

The company counts Tanglin Venture Partners, Titan Capital Winners Fund, Asian Paints promoter Manish Choksi, Rukam Capital and Synergy Capital among its investors.

Beco reported ₹111 crore in revenue and a ₹21.7 crore loss in FY25, according to Tracxn.