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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Mridula Bhatkar, J.
Ramachandra Venkataramanan - Appellant
Vs.
Shapoorji Pallonji & Company Ltd & Anr - Respondents
Criminal Writ Petition No. 5298 of 2018
Decided On : 27-03-2019
Constitution of India, 1950 – Articles 19, 21, 227 – Prevention of Corruption Act, 1988 – Sections 13 – Code of Criminal Procedure, 1973 – Section 482 – Indian Penal Code, 1860 – Sections 500, 120 – Complaint of defamation – By this Writ Petition, the petitioner/original accused prays that the order passed by the learned Additional Chief Metropolitan Magistrate, 38th Court, Ballard Pier, Mumbai, thereby issuing process against the petitioner in C.C. under section 500 of the Indian Penal Code be quashed and set aside. – Held, Allegedly offending words stated in it are motivated, baseless and smear campaign. Smear means damaging the reputation by false accusation. – These words are required to be read in the entire context. – The petitioner has made this statement with the reference to earlier disputes. – As mentioned in the beginning, the matter carries a baggage of accusations, denials, claims and disclaimer. – Both the parties are from the business world. – Though they initially worked together, today, they are at loggerheads. – Their disputes are discussed publicly by the media and the people. – When two persons are fighting, they are bound to make some allegations against each other. – If these allegations are abusive, they create an impression of hatred, contempt and ridicule against the person who is attacked. – Court is of the view that these words do not constitute defamation. – One has to be careful in choosing the words while expressing his feelings. – To express and speak is an invaluable fundamental right of an individual guaranteed under Articles 19 and 21 of the Constitution of India to all the citizens which is the soul of democracy. – The law of defamation is one of legally acceptable reasonable restrictions in the Indian legal system. – To oppose, deny, reject, defend, etc. are the ways of expression. – It manifests emotional status and thinking process. – However, it should not lead to harm, damage, which is a rider to the freedom of expression. – Thus, one can disclaim, refuse, deny, reject certain charges or allegations made against him or her publicly with restrained words. – Ultimately, it is a choice of words which may constitute the offence of defamation. – Every reaction to the words - written or uttered, may not be a correct test to decide to treat the words capable of being defamatory. – Therefore, Mr.Pondas submission that two letters from other companies or customers enquiring about the press note statement, is evidence of defamation, is not acceptable. The impugned words do not create contempt, hatred or ridicule against the complainant/respondents, if the test of reasonable and right thinking common man is applied. – Court has to be guarded and should have an eye to read between the lines when the complaint of defamation is filed. – To call a particular statement defamation is subjectively easy and, therefore, it is necessary to see whether the complainant is using this process of law as a weapon against the other person to settle a score or some other dues. – Undoubtedly, to stand before a Criminal Court is a humiliation and a matter of extreme stress and harassment and, therefore, the Court is required to find out the real issue in such a matter especially when the parties like the complainant and the accused are fighting various business battles on various battle fields. – Court is of the view that the words which are used in the press note are not at all defamatory. – They are moderate and temperate. – They do not invite contempt, ridicule or hatred against the persons mentioned in the press note and muchless the complainant. – Certain statements, if found incorrect, can be corrected without labelling them defamatory. – The words used and the statement made in the press note can not be perceived as defamatory. – Order Accordingly
Mridula Bhatkar, J.
Rule. Rule made returnable forthwith by consent of the parties and heard finally at the stage of admission itself. Respondents waive notice through their respective Counsel.
2. By this Writ Petition, the petitioner/original accused prays that the order dated 11.10.2018 passed by the learned Additional Chief Metropolitan Magistrate, 38th Court, Ballard Pier, Mumbai, thereby issuing process against the petitioner in C.C. No.2240/SW/2018 under section 500 of the Indian Penal Code be quashed and set aside.
3. Respondent No.1 has lodged a complaint of defamation under section 500 of the Indian Penal Code against the petitioner/accused. The complainant Shapoorji Pallonji & Company Pvt. Ltd. is a part of Shapoorji Pallonji Group. According to the complainant company, the applicant/accused has made a defamatory statement on 30.5.2018 by issuing a press note on the website of the Tata Trusts where the applicant/accused is working as a Managing Trustee and Director of Air Asia India Ltd. He issued the press note to the print media and his statement was published on the websites of Tata Trusts and Electronic media. Few statements in the said press note were found to be defamatory and, therefore, the complaint was lodged by the complainant Shapoorji Pallonji & Company Pvt. Ltd. The learned Additional Chief Metropolitan Magistrate by his order dated 11.10.2018 issued process and hence, this Writ Petition.
4. This Criminal Case has history of earlier litigations between the parties which needs to be mentioned. Mr.Cyrus Mistry and Shapoorji Pallonji Group and Tata Sons are having disputes over a number of issues since 2016. On 24.10.2016, the Board of Directors of Tata Sons replaced Mr.Cyrus Mistry from the post of Executive Chairman of Tata Sons. Therefore, Mr.Cyrus Mistry, who is large shareholder in Shapoorji Pallonji Group, sent emails in October, 2016 with defamatory, malicious allegations against the petitioner/accused. Thereafter, Mr.Cyrus Mistry was removed as Director of Tata Sons in February, 2017. Mr.Cyrus Mistry repeatedly circulated false and malicious imputations against the petitioner/accused on 25.10.2018 and, therefore, the petitioner filed complaint bearing CC No.1475/SS/2017 for criminal defamation against Mr.Cyrus Mistry, Shapoorji Pallonji and other Directors of group companies, namely, M/s.Cyrus Investments and M/s.Sterling Investments before the learned Metropolitan Magistrate. Process was issued. However, it was quashed by the Sessions Court and so, the petitioner filed Writ Petition No.282 of 2018 which is pending before this Court.
5. The complainant filed Company Petition No.82 of 2016 before the National Company Law Tribunal, Mumbai against Tata Sons and others on the ground of operation and mismanagement in the affairs of Tata Sons. The company petition was decided and against that decision, appeal is pending before the National Company Law Appellate Tribunal.
6. On 28.5.2018, the CBI, New Delhi, registered FIR against the petitioner and 9 others under section 120B of the Indian Penal Code r/w sections 13(1)(d) r/w 13(2) of the Prevention of Corruption Act, 1988 and by way of denial of his involvement in the said case, the petitioner/accused has issued press note on 30.5.2018, which is the subject matter of this petition.
7. Learned Senior Counsel appearing for the petitioner has submitted that the press note dated 30.5.2018 is to be read in context with the previous battle between Tata Sons and Shapoorji Pallonji. The CBI has registered an FIR due to the false statement of inducement by the respondent/complainant, against the petitioner. He has submitted that the NCLT by its order dated 12.7.2018 was pleased to dismiss the Company Petition No.82 of 2016 preferred by Cyrus Investments and Sterling Investments on merits and all the allegations were comprehensively rejected and dismissed by NCLT. He further submitted that the NCLT in its judgment has found the allegations to be "abominably ba
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