The above two petitions are taken up for common consideration, as the basis for filing of the complaints, in the two cases, is the same. The complainants in the above two petitions are respectively the shareholder and the director of Tulip Hotels Private Limited against which allegedly a defamatory statement was made by the petitioners herein. They are husband and wife too.

2. These petitions are filed seeking for quash of the proceedings in C.C.No.344 of 2009 and C.C.No.753 of 2009 on the file of XVII Additional Chief Metropolitan Magistrate, Hyderabad, which were numbered after taking cognizance on the basis of the complaints filed by the 1st respondent in the above two petitions.

3. Before adverting to the arguments extended on either side, it would be beneficial to refer to the averments in the complaints, which are as follows:

The complainants are one of the Directors and a Shareholder, respectively, in Tulip Star Hotels Leisure and Health Resorts Limited, (for brevity, “TSHLHRL”), which is a Public Limited Company. They are aggrieved by the defamatory statements made against the head of an otherwise stable corporate body of the listed group of companies, which would culminate in having an adverse impact in the share value in the volatile share market. The complainants are as much aggrieved as the Chairman of the group of companies and since it affects the economic stake in the company vis-à-vis the share market. The complainants are one of the Directors and the shareholder respectively of the Company; Dr.Ajit B.Kerkar is the Chairman and has controlling interest in the Tulip Group of Companies and he is not only the erstwhile Chairman of Taj Group of Hotels but he is also responsible for placing Goa on the international tourism map way back in the year 1970. TSLHRL was promoted and incorporated in July, 2002, in order to promote 5-Star Holiday concepts, in the wake of the exigencies like 9/11 disaster, Indo-Pak tension, SARS, etc., which had totally collapsed the hospitality and leisure business in India, in particular. TSHLHRL is affiliated with Interval International Inc. (II), an international time share exchange company. It renovated 3 out of 21 rooms on the 1st floor of Bogmallo Beach Resort. The choice of 3 rooms was to provide the members of TSHLHRL’s Holiday Club with one studio apartment and one bed room apartment and accordingly the complainant spent at Bogmallo Beach Resort, over an amount of Rs.35 lakhs for renovating the same. Nor the said amount of Rs.60 lakhs spent by the complainant, while renovating the rooms, in addition to the amount of Rs.22.70 crores already paid to Tulip group to Trade Wings Group and an amount of Rs.8.30 crores being the balance amount for 50% equity ownership of Bogmallo Beach Resort has been retained since the Trade Wings Hotels have not completed their part of the bargain under the concluded contract.

A1 is a company engaged in the business inter alia of running travel agencies, money changing, cargo, owning hotels, restaurants etc. A1 holds 100% shares in A2. A2 is thus subsidiary of A1; A3 is a majority share holder of A1 and is also a Director of A1 and A2. A3 to A6 are the Directors of A1 and A2. A3 and A6 drafted the text of the defamatory matter, definitely ingrained with malice, which was published and circulated widely via electronic mail. A4 and A5 forwarded the same to A3, who then made his corrections and incorporated the same in the draft forwarded by A4 and A5. A3, A4, A5 and A6 got together, met with each other and discussed the text of the defamatory matter and approved the final defamatory note to be published and circulated via electronic mail, against the complainant. They have control over A1 and A2 and its management. The mail was circulated among persons belonging to the hotel industry, to the guests visiting the various hotels and also among other persons all over India. The said mail is as under:

“The Bogmallo Beach Resort Goa (Bogmallo) owned by Trade W