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IN THE HIGH COURT OF DELHI
Asha Menon, J.
Fiitjee Limited - Appellant
Versus
Vidya Mandir Classes Ltd. - Respondent
CS(OS) 656 of 2021
Decided On : 16-02-2022




Defamation claims must be substantiated with evidence; interim injunctions can be granted to restrain publication of statements deemed severely defamatory.

Headnote:(A) Code of Civil Procedure, 1908 - Order XXXIX Rules 1 & 2 - Defamation and disparagement in competitive advertising - Plaintiff sought interim injunction against defendants for allegations in a video that were deemed defamatory - Court emphasizes that justification cannot equate to truth and requires evidence for substantiation - Use of terms such as 'kidnapping' and 'extortion' considered too severe to remain public, contrasting with competitive criticism on policies. (Paras 1, 10, 29, 32)

(B) Interim Relief - Balance of convenience and potential for reputational harm as basis for restraining publication - Courts cautious in granting interim injunctions against defamation claims pending justification at trial. (Paras 26, 31, 32)

Facts of the case:
The plaintiff, a prominent educational institution, claimed defamation due to a video by defendants alleging criminal behavior and misconduct. Defendants maintained it was a justified response to a comparative advertisement by the plaintiff.

Findings of Court:
The court agrees that while criticism is permissible, found several allegations in the video to be defamatory and not justified, ordering the removal of specific terms.

Issues: The main issues were whether the video was defamatory and whether the defendants' claims could be justified at trial.

Ratio Decidendi: The court held that while competitors may criticize each other's offerings, allegations of criminal conduct must not be defamatory unless supported by evidence; interim injunctive relief granted for severe claims.

Result: Defendants required to edit out the offensive words from the video.

Table of Content
1. background of the parties and dispute (Para 3 , 4)
2. plaintiff's arguments against the defendants (Para 5 , 6 , 7 , 8 , 9 , 10)
3. nature of competition and defamation (Para 11 , 12 , 13)
4. assessment of justification defenses (Para 16 , 19 , 25 , 26)
5. defamatory statements and their implications (Para 29 , 30)
6. court's final orders on the case (Para 32 , 33 , 35 , 36)

ORDER

[VIA VIDEO CONFERENCING]

LA. 16137/2021 (of plaintiff u/O XXXIX R-1&2 CPC for interim relief)

1. This order will dispose of I.A No.16173/2021 under Order XXXIX Rules 1 & 2 of the Code of Civil Procedure, 1908 ('CPC' in short) filed by the plaintiff for interim relief.

2. I have heard the submissions of Mr. Sudhir Nandrajog, learned senior counsel for the plaintiff, Mr. Jayant K. Mehta, learned senior counsel for the defendant No.1, Mr. Rajiv Nayar, learned senior counsel for the defendant No.2 and Mr. Aditya Gupta, learned counsel for the defendant No.9 and considered the material on record and the cited case laws.

3. The plaintiff describes itself as a company registered under the Companies Act, 2013, constituted in the year 1992 for the purpose of imparting quality education to students so that they gain adequate skills to secure admission to various premier educational institutions in the country such as the Indian Institute of Technology. It claims to have developed a unique method of teaching and formulating various programs, which ensures a high rate of success amongst its pupils in gaining admission to these premier institutions of higher education. Over a period of time, on account of hard work put in by the teachers at its 80 centers spread across the country, it has been declared to be India's number one coaching institute for Engineering Entrance Examinations in 2019.

4. The grievance that has led to the filing of the present suit is a video that has been uploaded on YouTube by the defendant No.2, which according to the plaintiff contained falsities. The defendant no.2 is seen in the video (the transcripts have been placed at pages 26-64 of the plaintiff's documents) introducing the topic as akin to the battle between 'Sri Ram' and 'Ravan', certainly suggesting that the plaintiff was in the position of 'Ravan', by not heeding to the warnings of defendant No.1 on previous occasions, to refrain from disparaging it and thus inviting upon itself the strong rebuttal by defendant No.2. The plaintiff has been painted in a completely negative light by the use of such metaphors. Words such as 'gumrah' have been used against the plaintiff, the public is told that the plaintiff misled the parents, held the parents and children hostages, was focused only on making money, indulged in kidnapping and extortion, while at the same time ill-treating its teachers by not paying salaries and so on. There is also a comment on the refund policy of the plaintiff and other malpractices have been alleged. It is also claimed that there is a Central Bureau of Investigation ('CBI' in short) case against the plaintiff.

5. Mr. Sudhir Nandrajog, learned senior counsel for the plaintiff submitted that the intent of the video was retribution borne out of malice. It was explained that it was fair practice in the industry for institutions to issue advertisements where a comparative performance is published. Since the comparison in the advertisement issued by the plaintiff (page no.27 of the plaintiff's document) was not complimentary to the defendants, therefore, the offending video was uploaded by the defendant no.2. Assuming that the plaintiff's advertisement had caused discomfort to the defendants, they could have sought remedy against the plaintiff but it did not give them license to defame and abuse the plaintiff.

6. It was submitted that no CBI case was pending nor has the plaintiff been summoned by the CBI for investigation ever. Even as per the documents filed by the defendants (i.e. Document no.1), a complaint seems to have been filed and the

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