SC refuses to interfere with HC order in defamation case

New Delhi: In a relief to former Prime Minister H D Deve Gowda, the Supreme Court on Friday refused to interfere with the Karnataka High Court order 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 apex court, however, acknowledged statements made by influential public figures against corporate entities do affect their reputation, share prices and investments.

The trial court had, in an order on the defamation suit on June 17, 2021, directed Deve Gowda to pay Rs 2 crore as damages to the Nandi Infrastructure Corridor Enterprises for his "defamatory statement" against the company in a television interview 10 years ago.

A bench of Justices DY Chandrachud and Hima Kohli, while hearing an appeal filed by NICE, noted the high court in its order of February 17, 2022 directed Deve Gowda not make any statement, which is defamatory, pending the disposal of the first appeal. "Since the High Court has 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, we are not inclined to entertain a petition under Article 136 of the Constitution.

"The High Court has also directed that the respondent shall not make any statement, which is defamatory, pending the disposal of the first appeal," the bench said. It told senior advocate Neeraj Kishan Kaul that derogatory words like "loot" were used by him, which could affect the reputation of the company.