NEW DELHI—The Delhi High Court terminated proceedings against Microsoft Corp. in a criminal censorship case involving allegations that Internet companies in India are failing to screen objectionable content from their sites.

A Microsoft representative confirmed the development. The case, stemming from a complaint by Indian journalist Vinay Rai, now has as its main defendants Google Inc. and Facebook Inc., because proceedings against Yahoo Inc.'s India subsidiary were dropped earlier. A number of smaller sites are also targeted.

Mr. Rai alleged in his complaint that the websites are allowing users to post over-the-top satire as well as content that offends various religions, violating Indian laws against obscenity and inciting communal tensions.

Hearings in the New Delhi trial court, Patiala House, are scheduled to resume on May 23. The Delhi High Court on May 3 will hear petitions by Google and Facebook to quash the cases against them.

"Microsoft had filed a petition on the grounds that neither the text of the complaint nor evidence adduced by the complainant, made any reference to Microsoft, and that it was contrary to law to summon a party against whom no allegation was made," a Microsoft representative said.