Giving relief to former Prime Minister H.D. Deve Gowda, the Supreme Court has refused to interfere with the Karnataka High Court order for staying execution of a trial court decree, asking him to pay Rs 2 crore in a defamation suit filed against him by a construction company.
The Top Court has acknowledged the statements made by influential public figures against corporate entities affecting their reputation, share prices and investments.
The trial court on June 17, 2021, had directed former PM Deve Gowda to pay Rs 2 crore as damages to the Nandi Infrastructure Corridor Enterprises (NICE) for his “defamatory statement” against the company in a television interview 10 years ago.
A Bench of Justice D.Y. Chandrachud and Justice Hima Kohli, were hearing the appeal filed by NICE, where they said that they were not inclined to entertain a petition under Article 136 of the Constitution as the High Court had passed a discretionary order, staying the execution of the decree passed by the trial court, imposing compensation in a suit for defamation pending the first appeal.
The bench also mentioned that the High Court has directed the respondent for not making any defamatory statement till the case is disposed.
The counsel who appeared for NICE,told the court that derogatory words like “loot” were used by Mr.Gowda, which could affect the reputation of the company.
“We agree with you, statements made by influential public figures against the corporate entities do affect their reputations including the share prices and investments,” the Bench orally remarked.
The Bench has clearly said that in case there is any breach by the said if there is any breach of the direction of the High Court by the former prime minister, the company will be at liberty to move the High Court for vacating the interim order.
The court dismissed the appeal with clear order that the observations in the impugned order shall not weigh in the final disposal of the first appeal since it was confined to the question of interim stay of execution of the decree,”