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1960 Supreme(Cal) 188

HIGH COURT OF CALCUTTA
G. K. Mitter
NATIONAL SUGAR MILLS LTD. - Appellant
Versus
ASHUTOSH MUKHERJEE - Respondent
Suit 837  Of  1960
Decided On : AUGUST 25, 1960

Advocates Appeared:
Rebati Nath Sarkar, S.CHATTERJEE, S.MUKHERJEE

In cases of defamation, the court has jurisdiction to grant an interim injunction to restrain the publication of defamatory statements, even before the trial of the suit, if the plaintiff can show that the publication is prima facie defamatory and that it has caused or is likely to cause serious damage to the plaintiff's reputation or business.

Headnote:

DEFAMATION - INTERIM INJUNCTION - JUSTIFICATION - JURISDICTION - PUBLIC INTEREST - FREEDOM OF SPEECH - BALANCE OF CONVENIENCE - IRREPARABLE HARM - PUBLICATION WITHIN JURISDICTION - Ahmedpur Sugar Factory Case.

Fact of the Case:

The plaintiff, a sugar mill company, filed a suit for defamation and sought an interim injunction to restrain the defendant, a newspaper editor, from publishing defamatory statements about the plaintiff's business practices. The defendant claimed justification, alleging that the plaintiff had sold sugar at a price higher than the controlled rate and had misappropriated the excess amount.

Finding of the Court:

The court found that the publication was clearly libellous and that the defendant had failed to establish a prima facie case of justification. The court also found that the plaintiff had made out a case for an interim injunction, as the publication had caused and would continue to cause serious damage to the plaintiff's reputation and business.

Issues: 1. Whether the publication was defamatory. 2. Whether the defendant had established a prima facie case of justification. 3. Whether the plaintiff had made out a case for an interim injunction.

Ratio Decidendi: 1. The court held that the publication was clearly defamatory, as it imputed dishonesty and misappropriation to the plaintiff. 2. The court held that the defendant had failed to establish a prima facie case of justification, as the evidence relied on was hearsay and lacked specificity. 3. The court held that the plaintiff had made out a case for an interim injunction, as the publication had caused and would continue to cause serious damage to the plaintiff's reputation and business.

Final Decision: The court granted an interim injunction restraining the defendant from publishing the defamatory statements.

G. K. MITTER, J.

( 1 ) THIS is an application for an interim injunction pending the determination of the suit to restrain the defendant, his servants and agents from publishing the words mentioned in paragraph 4 of the petition or any of them or any similar words or words to the like effect which are defamatory of the plaintiff.

( 2 ) THIS suit was filed on June 13, 1960, by the plaintiff, a company incorporated under the Indian Companies Act and having its registered office at No. 15, Chittaranjan Avenue, Calcutta, within the jurisdiction, of this Court. The defendant is described in the plaint as the printer, publisher and editor of a Bengali weekly newspaper called "mayurakshi" having circulation among other places in Calcutta within the jurisdiction of this Court and in the district of Birbhum. The full text of the publication, a good portion whereof is in Bengali, is contained in Annexure "a" to the plaint. It refers to the way in which the plaintiff company carries on business and there can be no two opinions on the point that the publication is clearly libellous. On translation of the Bengali portion into English the whole as shown in the said annexure reads as follows:"this age is very dangerous. Beneficial advice out of good motive is not heeded to. Ahmedpur Sugar Factory is a National Concern. Forgers or Cheats should have no place there. Accounts, receipt, cash Memo, should be absolutely correct every one expects it to be so. Sugar of this Mill is sold at the rate of Rs. 52/-per maund but pash memos are issued at the rate of Rs. 45/ -. If any shopkeeper or trader does the same every one calls him a cheat, or a swindler. The Sugar mill--though a national concern, has earned such bad reputation. Sir Mihir Lal Chatterjee informed the Legislative Assembly of West Bengal of the story of realising Rs. 52/- on granting receipts at the rate of Rs. 45/- in connection with discussion of Budget on 26th March. The Chief Minister admitted it in his reply. But what the Chief Minister said is irrelevant and misleading. Issue of receipts at Rs. 45/- realising a pfice at Rs. 52/- per maund and concealment of the said additional sum of Rs. 7/- by falsification of accounts is nothing but an attempt at theft in the eyes of accountants. If a national concern issues receipts for Rs. 45/- after talcing sums of Rs. 52/-and does not issue receipts for Rs. 7/- why ordinary merchants would not follow suit. The irrelevant, meaningless, illogical answer of the Chief Minister is set out below: 'as regards the price, I may tell my friends here that in spite of writing to the Central Government about the price at which sugar from the West Bengal Mills can be sold, they have refused to give us any ceiling price. I take it therefore that the intention is that it can be sold at any price that they chose to give according to the market rate. I have also heard what Shri Chatterji has said about there being little variation in the price rate. I have made enquiries and I have found that although the ordinary price is Rs. 45/-a maund, which is allowed by the Government of India, they have sold in some cases at Rs. 52/-per maund. They have kept Rs. 7/- in the accounts separately in case the Government of India allows that extra money to band utilised for that fund--in that case it will be merged in the general accounts, otherwise it will be shown as reappropriation for sale. There is no question of any price. The money that has been realised on the sale of sugar is shown partially as sale price and partially under a separate head. In case the Government of India says "you can charge up to Rs. 52/- it will be merged in the general account. "so there are no ways to deny that receipts are being issued for Rs. 45/- and secretly Rs. 52/-are being realised. That is Rs. 7/- per each maund are being taken without receipt. The same has been admitted by Dr. Bidhan Roy, Receipts would be issued for a figure but different figures would be accepted secretly, that is

































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