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2019 Supreme(Mad) 2000

IN THE HIGH COURT OF MADRAS
R. Subramanian, J.
Vidyaa Hari Iyer - Appellants
Vs.
Metallic Bellows India Pvt. Ltd. - Respondent
A. No. 98 of 2019 in C.S. No. 870 of 2017
Decided On : 26-08-2019

Advocates Appeared:
For the Appellant : T. Mohan for Vijayalakshmi K. Rajarathnam
For the Respondents: P.H. Aravind Pandiyan assisted by R. Kumar

Headnote:

Share holders or the employees - benefits of the employee on his death - employee of the Company – Jurisdiction - After the death of her husband, the defendant became inimically disposed towards the other share holders and the Promoter of the Company. She started addressing various complaints to the Authorities viz., the Registrar of Companies, Central Provident Fund Commissioner and others making false and frivolous allegations against the Company and its Promoters. She also lodged several police complaints with the All Women Police Station, T. Nagar forcing the other share holders, the Company Secretary and Chartered Accountant to appear before the Police. This forced the Directors of the Company to approach this Court seeking a relief of not to harass - plaintiff is a very closely held Company and the defendants husband late G. Hari who is the son of the Promoter was holding 2770 equity shares. Apart from being a share holder he was also an employee of the Company. The husband of the defendant G. Hari passed away on 18.09.2015 leaving the defendant as his only surviving legal heir without any issues – Held, Honble Mr. Justice S. Ravindra Bhat of Delhi High Court had an occasion to consider the issue relating to the SLAPP suits in his judgment in Tata Sons Limited Vs. Greenpeace International and others reported in. It is not uncommon that persons file such suits claiming phenomenal and substantial damages even though they are aware that they are not going to succeed in their claim only with a view to prevent others from publishing materials which may damage or impair their reputation - Even though this suit is not one against publishers, but it is quite evident that this suit is also an attempt to prevent the defendant from seeking redressal of her grievances through statutory Authorities. I am therefore convinced that this suit does not disclose cause of action and the letters written by the defendant to the Statutory Authorities and the complaint made by her to the Police cannot be construed as publication of defamatory statements - No doubt true, making false and repeated complaints against the Company or a Society or a Public Organization would have the effect of tarnishing its image resulting in damages. At the same time, if a person who has an interest in the Company or Organization complains about its functioning or performance, the same cannot at any stretch of imagination be construed as defamation. I am therefore of the considered opinion that the suit does not disclose cause of action and the cause of action pleaded is only illusory and imaginary. Therefore, the plaint has to be rejected and it is accordingly rejected - I am unable to resist the temptation to observe that this very suit has been brought about only to scuttle the defendant from seeking remedy under law to indicate her rights. These kind of suits for damages are brought about only to prevent the defendants therein from speaking upto their rights or approaching the Authorities seeking redressal. In the domain of public law, such suits were classified as Strategic Law Suits against Public Participation which is described as a strategy adopted by persons who are affected by such publications to terrify the publishers – Application is allowed

ORDER :

R. Subramanian, J.

1. This Application has been filed by the defendant in the suit seeking rejection of the plaint on the ground that it does not disclose the cause of action.

2. The suit is one for damages for defamation and for costs.

The case of the plaintiff is as follows:-

3. The plaintiff is a Private Limited Company doing business in design and manufacture of Bellows for Space, Aerospace and Defense. The plaintiff is the sole supplier of Bellows to the Indian Space Research Organization. According to the plaintiff, it enjoys a very good reputation having achieved a high level of customer satisfaction by manufacturing and supplying products confirming to International standards. The plaintiff is a ISO 9001:2008 and Aerospace AS 9100 certified Company.

4. The plaintiff is a very closely held Company and the defendant's husband late G. Hari who is the son of the Promoter was holding 2770 equity shares. Apart from being a share holder he was also an employee of the Company. The husband of the defendant G. Hari passed away on 18.09.2015 leaving the defendant as his only surviving legal heir without any issues.

5. After the death of her husband, the defendant became inimically disposed towards the other share holders and the Promoter of the Company. She started addressing various complaints to the Authorities viz., the Registrar of Companies, Central Provident Fund Commissioner and others making false and frivolous allegations against the Company and its Promoters. She also lodged several police complaints with the All Women Police Station, T. Nagar forcing the other share holders, the Company Secretary and Chartered Accountant to appear before the Police. This forced the Directors of the Company to approach this Court seeking a relief of not to harass in Crl.O.P. No. 16733 of 2017.

6. The defendant also issued a legal notice on 12.08.2017 to the Promoter of the Company Mr. R. Gopalakrishnan, Mrs. Padma Ramesh, Director, Mr. G. Shankar son of Mr. R. Gopalakrishnan, Mrs. Sujatha, wife of G. Shankar, Mr. G. Ramesh Husband of Mrs. Padma Ramesh, Mr. N. Balachandran, Company Secretary and Mr. S. Sriram, Chartered Accountant putting them on notice about her impending visit to the Company and requiring them to intimate her a day of their convenience before 30.08.2017 so as to enable her to enter the premises of the plaintiff along with her Chartered Accountant and team to inspect the records maintained. The notice also carried a threat to the effect that she will be constrained to approach the regulatory Authorities including Registrar of Companies, Ministry of Corporate Affair, National Company Law Tribunal and other Organizations if she is denied entry.

7. It is also averred in the plaint that the defendant along with certain unidentified persons attempted to gate crash into the plaintiff's premises on 31.08.2017 around 12.30 p.m. This necessitated a visit of the Inspector of Neelankarai Police Station to the plaintiff's premises. Not stopping there, the defendant also lodged a complaint with the Commissioner of Police, Chennai. The Commissioner of Police adviced her to resolve the issue through Court as the matter involved is a civil dispute regarding the transmission of shares in the Company.

8. According to the plaintiff, the above actions of the defendant are with the deliberate and mala fide intention to defame the reputation and good will of the Company. It is also the case of the plaintiff that the defendant's letter addressed to the Registrar of Companies dated 08.09.2017 making un-true and false allegations amounted to defamation and the said letter was not written with a genuine intention of redressal of her grievances.

9. The claim that her husband's Provident Fund was not settled is also incorrect. The complaint about the actions of the plaintiff had caused considerable damage to the reputation of the plaintiff apart from affecting its business. Hence, the plaintiff had come forward with the above suit seeking recovery of

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