Lodha Developers Limited Vs. Krishnaraj Rao & Ors
Lodha Developers Limited Vs. Krishnaraj Rao & Ors
Notice
Of Motion (L) NO. 152 OF 2019, Order dated 26/04/2019
Ratio:
A Statement is not true merely because it is in print; Not false merely
because it is online.
Decision cited :
In
the decision at a trial of the suit, Mitha
Rustomji Murzban v Nusserwanji Nowroji Engineer AIR 1941 Bombay 278, the
allegation was that certain female students attending a class would have their
future ruined because of one person. The court held that no action lies against
a defendant who can prove that the words complained of are a fair and bona fide
comment on a matter of public interest. The defendant must show that the
subject on which he commented is a matter of public interest, that the
statements of fact that he makes are true, and that his comment is fair and
bona fide. His criticism must be expressed fairly.
In
the decision of single judge in Shree Maheshwar
Hydel Power Corporation Ltd v Chitroopa Palit & Anr AIR 2004 Bom 143,
the matter dealt with an allegation made against a hydroelectric project by
certain activists by the Narmada Bachao Andolan. Counsel for the respondent
submitted that a mere plea of justification would be sufficient to dislodge any
interim injunction application. The case was that the Court is not required at
this interim stage to scrutinize the material but only to assess whether it
exists, and whether the justification is in fact being pleaded. This was in the
context of limited five broad-based allegations for which an injunction was sought.
The learned Single Judge granted the injunction referring inter alia to the
decision in Betty Kapadia and drew a distinction between the law in England and
law in India. He pointed out that there, a mere plea of justification is
sufficient. However, courts in India are not satisfied with a mere plea. A
defendant must show that the statements were bona fide in the public interest,
that they have taken reasonable precautions to ascertain the truth, and that
the statements were based on sufficient material that can be tested for veracity.
Statements for injunction relied by the Plaintiff:
The
first of these statements which alleged that the planning authority MMRDA had
connived with the Developer by granting an Occupation Certificate when the
building was not fit for occupation, Court observed that the statement was not
defamatory and rejected the injunction sought.
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The
second statement which alleged fraud in the acquisition of the plot from MMRDA
which was originally intended for infrastructure, the court accepted Defendant
contention that he would not repeat the statement without the necessary factual
basis.Â
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The
third statement alleging violations of the National Building Code and the DCR,
the court did not accept Plaintiff’s contention that it was defamatory per se
and refused the request for injunction.
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The
fourth statement alleging collusion by certain banks are also involved with Lodha
regarding the manner in which loans are passed. The court ruled, “On a
objective assessment, I find that what Rao has said here is in an opinion, fair
comment or argument with some basis in fact. There is no question of an
injunction or even of asking if he will volunteer a statement. The statement is
not, prima facie, per se defamatory.â€
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In the fifth and
final statement alleging that the basement of the project did not have an
occupation certificate and neither the fire brigade nor MMRDA has inspected it,
the court felt that the Defendant had justification to prima facie support the
statement with “contemporaneous documentation†and refused to grant injunction.
Facts of the case:
Defendant Krishnaraj is an
investigative journalist who has previously written against Lodha criticising
the quality of construction in its properties. Between 2011 and 2012, Thard and
Jaisingh had purchased two flats on the 31st floor in ‘B’ wing of Tower 5 of
the Dioro building the Appellants project at Wadala, The flats were priced at
Rs 2.37 crore and about Rs.3.5 crore. After finding several deficiencies in the
construction, Shilpi Thard participated in the public protest before she
approached the Defendant to write about itagainst the Plaintiff, approached the
Defendant in September 2018. After inspecting the site, Defendant wrote about
the issue in his blog on November 12, 2018, embedding photos and videos of the
site. Before the content was posted online the Defendant had sent the entire
content in an email to the Plaintiff on November 8, 2018 but received no
response. The video went viral wherein a man punching a wall resulted in the
cracking of it. The clip was uploaded by Defendant and friend of home owner,
Shilpi Thard. On January 17, 2019 Plaintiff filed the defamation suit seeking a
gag order against the Defendants.
Interim relief sought by the Plaintiff
Plaintiff had sought interim relief
in the case by asking the court for an injunction against the Defendant on the
basis of 5 particular statements that he had made. The presiding judge Justice
Gautam Patel, individually considered each of the statements and the arguments
presented by both parties.
Issue before High Court:
Whether
to restrain the Defendant and two flat purchasers from making critical comments
against the Plaintiff and whether it comes under the purview of defamation?
High Court’s Verdict:
The High Court made observation as
under:
(i) Fair comment to be protected
The
Court examined the nature of opinions made by the defendants and observed
"Every latitude must be given to opinion and to prejudice, and then we
must see whether a fair or reasonable person would make such a comment. That
the comment is independent, bold or exaggerated — or even grossly exaggerated —
does not make it unfair.
(ii) Merely because statement is made online it is not suspicious
Dealing
with the plaintiff's allegations that the defendant journalist had taken
recourse to social media and YouTube to make his comments against the builder,
the Court stated that a statement is not to be viewed as suspicious only
because it is not made in print and is made only online, or using one or more
of the available modern communications channels or technologies. That new
technology may have made us a noisier society. Further the Court observed that
there would be something to be said about the proliferation of what is known as
fake news, but that does not mean that everything about the technology is evil
or undesirable. It stated that one should not be misled into assuming that
every recipient of news or information is completely mindless and will swallow
wholeheartedly whatever comes his way. A statement is not true merely because
it is in print. It is not false merely because it is online".
(iii)
On this premise, the Court declined to pass a take-down order against YouTube
with regard to contents posted by Defendant.
Acelegal Analysis :
It
is observed in the present case that there is no different standard of law that
applies to online journalism or comment. If a statement is made knowing it to
be false, without believing it to be true, or in reckless disregard of the
truth, the medium in which it is made is entirely irrelevant. The statement is
actionable. But a statement is not to be viewed as suspicious only because it
is not made in print and is made only online, or using one or more of the
available modern communications channels or technologies.
In
regards to the plurality of voices it is observed that every online user is
bound to the same law and the same standards. Each gender runs the same risks. Voices
cannot be silenced because they are online. It demands that we must all learn to
be significantly more tolerant of opposing opinions.
On the other hand if there is a greater
plurality of voices online this is something to be devoutly wished for and not
to be suppressed. If in particular there is online comment and it can be said
to be fair comment about any product or offering, then there is no reason as to
why it should be forced to be shut down, or why the person who said it should
be silenced
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