Terming liberty of thought and expression as "cardinal", a bench of justices J Chelameswar and R F Nariman said, "The public's right to know is directly affected by section 66A of the Information Technology Act."
Justice Nariman, who pronounced the verdict in a packed court room, also said that the provision "clearly affects" the fundamental right to freedom of speech and expression enshrined under the Constitution.
The bench also referred to two judgements of separate UK courts which reached different conclusions as to whether the material in question was offensive or grossly offensive.
"When judicially trained minds can reach on different conclusions" while going through the same content, then how is it possible for law enforcement agency and others to decide as to what is offensive and what is grossly offensive, the bench said, adding, "What may be offensive to a person may not be offensive to the other".
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The government had also said that it will not misuse the provision.
"Governments come and go but section 66A will remain forever," the bench said, adding the present government cannot give an undertaking about its successor that they will not abuse the same.
The bench, however, did not strike down two other provisions- sections 69A and 79 of the IT Act- and said that they can remain enforced with certain restrictions.