The Bombay High Court on Saturday stayed some provisions of the new Information Technology Rules for news publishers that deal with a code of ethics.
The high court bench ruled that said such compulsory adherence to code of ethics was in breach of the right to free speech guaranteed under Article 19 of the Constitution.
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Legal news portal The Leaflet and journalist Nikhil Wagle had filed petitions challenging the new rules, saying they were likely to have a "chilling effect" on citizens' right to free speech.
The court also refused the Union government's request to stay the order to enable it to file an appeal.
The court, however, refused to stay clauses of the IT Rules that deal with the constitution of an inter-ministerial committee and blocking of content in certain situations.