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2023 Supreme(Del) 2783

IN THE HIGH COURT OF DELHI AT NEW DELHI
Mini Pushkarna, J.
Pankaj Oswal Through His Constituted Attorney Mr. Sanjay Wall – Appellant
Versus
Vikas Pahwa – Respondent
CS(OS) 661 of 2022 & I.As. 17416 of 2022, 17417 of 2022, 17485 of 2022
Decided On : 09-02-2023

Advocates appeared:
Mr. Kamal Mohan Gupta, Mr. Ambar Shehbaz Ansari, Mr. Aslam Khan and Mr. Gorakh Nath Yadav, Advocates, for the Petitioner.
Mr. A.S. Chandiok, Mr. Arvind Nigam, Mr. Sanjeev Kakra, Senior Advocates with Mr. Bharat Arora, Ms. Raavi Sharma, Ms. Simran Kohli and Ms. Vidushi Keshan, Advocates, for the Defendant.

The main legal point established in the judgment is the principle of absolute privilege for statements made by lawyers during judicial proceedings, providing complete defense against allegations of defamation.

Headnote:

Defamation - Senior Advocate - Absolute Privilege - [DEFAMATION] - [JUDICIAL PROCEEDINGS] - [Criminal Procedure Code, 1908, Companies Act, 2013, Constitution of India, Penal Code, 1860] - The court discussed the absolute privilege conferred upon statements made by lawyers during judicial proceedings, providing complete defense against allegations of defamation. The judgment highlighted the public interest in safeguarding freedom of speech during court proceedings and the adverse impact on the administration of justice if lawyers were to be in fear of legal action for their statements. The court emphasized that any restriction on the privilege granted to advocates during judicial hearings would hamper the administration of justice. It also cited various judgments to support the principle of absolute privilege for statements made during judicial proceedings, concluding that no counsel can be made liable for any action for libel or slander in respect of any statement made during court hearings.

Fact of the Case:

The plaintiff filed a suit against a senior advocate for making defamatory statements during the course of arguments in open Court. The plaintiff sought damages and injunctive reliefs, alleging that the defendant's statements had harmed his reputation and goodwill. The defendant opposed the suit, contending that the privilege of a lawyer is absolute and the statement given by a lawyer in Court is protected by absolute privilege.

Finding of the Court:

The court held that the defamatory statement alleged by the plaintiff was not actionable, as it was protected by absolute privilege. It emphasized that statements made by lawyers during judicial proceedings are conferred with absolute privilege, providing complete defense against allegations of defamation. The court rejected the plaintiff's suit, stating that no counsel can be made liable for any action for libel or slander in respect of any statement made during court hearings.

Issues: The main issue was whether the defamatory statement made by the senior advocate during the judicial proceedings was actionable, considering the principle of absolute privilege for statements made by lawyers in Court.

Ratio Decidendi: The court's decision was based on the principle of absolute privilege for statements made by lawyers during judicial proceedings, emphasizing the public interest in safeguarding freedom of speech during court proceedings and the adverse impact on the administration of justice if lawyers were to be in fear of legal action for their statements.

Final Decision: The court rejected the plaintiff's suit, holding that the defamatory statement alleged by the plaintiff was not actionable, as it was protected by absolute privilege. The court emphasized that no counsel can be made liable for any action for libel or slander in respect of any statement made during court hearings.

JUDGMENT

Mini Pushkarna, J. The present is a suit filed on behalf of the plaintiff against defendant, who is a senior advocate, for declaration that the statement as made by the said senior advocate during the course of arguments in open Court, is defamatory. Thus, damages to the tune of Rs.2 crores have been prayed towards loss and harm caused to the reputation and goodwill of the plaintiff by the defamatory statement of the defendant. The following prayers have been made:

    "a. Pass a decree declaring that the statement made by the Defendant on 14.07.2022, before the Learned Judge in Crl. Rev. Petition No. 554 of 2018 titled Pankaj Oswal v State of NCT of Delhi and Ors., in open court, as defamatory, infringing the Fundamental Right of the plaintiff under Article 21 of the Constitution of India;

    b. Pass a decree of Permanent Injunction restraining the Defendant and his associates, agents, representatives, and those acting under the Defendant from fabricating and/or disseminating any false and prejudicial imputations, directly or indirectly, against the Plaintiff;

    c. Pass a decree of Mandatory Injunction directing the Defendant to submit an unequivocal and unconditional apology to the Plaintiff for making false, unwarranted, and defamatory statements and imputations, causing damage and harm to the reputation of the plaintiff, against the Plaintiff;

    d. Pass a decree in favour of the Plaintiff, directing the defendant to pay to the Plaintiff an amount of INR 2 Cr. as damages towards loss & harm caused to the reputation and goodwill of the Plaintiff by the defamatory statements/imputations of the Defendant against the Plaintiff;

    e. Pass an order awarding exemplary costs and costs of the Suit in favour of the Plaintiff and against the Defendant;

    f. Pass such other, further orders, directions and decree as this Hon'ble Court may deem fit in the facts and circumstances of this case and in the interest of justice."

2. It is the case on behalf of the plaintiff that he is a highly acclaimed businessman belonging to one of India's most accomplished business families. His father, Late Mr. Abhey Kumar Oswal was a leading industrialist of his time, being the promoter, shareholder and director of the Oswal Group of Companies comprising of Oswal Agro Mills Limited (OAML) and Oswal Greentech Limited (OGL).

3. The relevant facts as given in the plaint are that the plaintiff prior to 2001 was acting as the full time director of Oswal Chemicals and Fertilisers Limited, now Oswal Greentech Limited (OGL). He was looking after day to day affairs and was responsible for taking the business decisions. In or around 2001, the plaintiff moved to Australia in order to establish and expand the Oswal Group Companies business. Even after moving to Australia, the plaintiff maintained healthy and cordial relations with all his family members and continued to enjoy a good reputation amongst his friends, business associates and society in general.

4. The father of the plaintiff, Mr. Abhey Kumar Oswal expired intestate on 29.03.2016 while travelling in Russia. He was survived by his Class-I legal heirs which included the plaintiff herein, his mother, his younger brother and his sister.

5. On 31.03.2016, plaintiff along with his wife and children flew to India to attend and perform the last rites of his late father. On 03.04.2016, the "rasam pagri" ceremony was performed as per Hindu rituals. The plaintiff being the eldest son, was bestowed with the "pagri" in the presence of more than 1200 persons of the Oswal community, relatives and family members.

6. After the ceremony, the plaintiff and his family members including his mother and siblings discussed the modalities for taking forward the family legacy. A consensus was arrived at between the parties that the joint family properties left behind by his father, would be managed by the plaintiff. Thus, based on the discussion held on 03.04.2016 with his mother and his siblings and in order to formalise the consensus a

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