Bombay High Court Quashes Criminal Defamation Proceedings Against Insurance Company and Its Officers for Termination Letter Issued in Official Capacity. Letter of termination sent to employee by company held not to constitute defamation under Section 500 IPC as it was a privileged communication made in good faith and in the discharge of official duties.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
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Case Note & Summary

The applicants, Future Generali India Life Insurance Company Limited and its officers, filed an application under Section 482 of the Code of Criminal Procedure, 1973 (CrPC) challenging the order dated 28/01/2013 passed by the Judicial Magistrate First Class, Nagpur, issuing process against them for the offence punishable under Section 500 of the Indian Penal Code (IPC), and the judgment and order dated 22/01/2019 passed by the District Judge-5 and Additional Sessions Judge, Nagpur, dismissing their revision application and confirming the said order. The non-applicant, Partha Sarathy Sarkar, was an employee of the applicant company working as General Manager. He was informed vide letter dated 08/02/2011 that his services were no longer required and he was asked not to report for duty from 09/02/2011. The termination letter did not specify any reason or violation of service terms. The non-applicant filed a Special Civil Suit No.69 of 2012 against the company and its officers for declaration and damages. Subsequently, he filed a criminal complaint alleging that the termination letter was defamatory and that the applicants had committed defamation under Section 500 IPC. The Magistrate issued process against the applicants. The applicants challenged the issuance of process by filing a revision before the Sessions Court, which was dismissed. Hence, the applicants approached the High Court under Section 482 CrPC. The High Court examined the contents of the termination letter and held that the letter was a privileged communication sent by the employer to the employee in the ordinary course of business and in discharge of official duties. The letter was not published to any third party and was sent in good faith. Therefore, no offence under Section 500 IPC was made out. The court further held that the continuation of criminal proceedings would be an abuse of process of court. Consequently, the High Court allowed the application, quashed the order issuing process dated 28/01/2013 and the judgment of the Sessions Court dated 22/01/2019, and discharged the applicants from the criminal proceedings.

Headnote

A) Criminal Law - Defamation - Section 500 IPC - Privileged Communication - Termination letter sent by employer to employee in the ordinary course of business and in discharge of official duties is a privileged communication and does not constitute defamation - Held that the letter was not published to any third party and was sent in good faith, hence no offence under Section 500 IPC is made out (Paras 10-12).

B) Criminal Procedure - Quashing of Proceedings - Section 482 CrPC - Abuse of Process - Where the allegations in the complaint do not disclose any offence and the proceedings are manifestly frivolous or vexatious, the High Court may quash the proceedings to prevent abuse of process of court - Held that the continuation of proceedings would be an abuse of process and the same are quashed (Paras 13-14).

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Issue of Consideration

Whether the letter of termination dated 08/02/2011 sent by the company to the employee constitutes defamation under Section 500 IPC, and whether the criminal proceedings initiated on the basis of such letter are liable to be quashed under Section 482 CrPC.

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Final Decision

The High Court allowed the application, quashed the order issuing process dated 28/01/2013 passed by the Judicial Magistrate First Class, Nagpur, and the judgment and order dated 22/01/2019 passed by the District Judge-5 and Additional Sessions Judge, Nagpur, and discharged the applicants from the criminal proceedings.

Law Points

  • Criminal defamation
  • Section 500 IPC
  • privileged communication
  • good faith
  • discharge of official duties
  • quashing of criminal proceedings
  • Section 482 CrPC
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Case Details

2022 LawText (BOM) (11) 112

Criminal Application (APL) No. 679 of 2019

2022-11-28

Anil S. Kilor, J.

Shri D.V. Chauhan a/b Shri Chaitanya Dhruv, Adv. for Applicants; Non-applicant in person.

Future Generali India Life Insurance Company Limited and Others

Partha S/o. Sarathy Sarkar

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Nature of Litigation

Criminal application under Section 482 CrPC for quashing of criminal proceedings for defamation under Section 500 IPC.

Remedy Sought

Quashing of order issuing process dated 28/01/2013 passed by JMFC, Nagpur, and judgment dated 22/01/2019 passed by Sessions Court, Nagpur, dismissing revision.

Filing Reason

The applicants challenged the issuance of process against them for defamation under Section 500 IPC on the ground that the termination letter was a privileged communication and did not constitute defamation.

Previous Decisions

Judicial Magistrate First Class, Nagpur, issued process against applicants on 28/01/2013 for offence under Section 500 IPC. The revision against that order was dismissed by District Judge-5 and Additional Sessions Judge, Nagpur, on 22/01/2019.

Issues

Whether the termination letter dated 08/02/2011 constitutes defamation under Section 500 IPC. Whether the criminal proceedings are liable to be quashed under Section 482 CrPC.

Submissions/Arguments

The applicants argued that the termination letter was a privileged communication sent in the ordinary course of business and in discharge of official duties, and was not published to any third party, hence no defamation. The non-applicant argued that the letter was defamatory and the proceedings should continue.

Ratio Decidendi

A termination letter sent by an employer to an employee in the ordinary course of business and in discharge of official duties is a privileged communication. If the letter is not published to any third party and is sent in good faith, it does not constitute defamation under Section 500 IPC. Criminal proceedings based on such a letter are an abuse of process and liable to be quashed under Section 482 CrPC.

Judgment Excerpts

The applicants in the case at hand have filed the present application under Section 482 of the Code of Criminal Procedure, challenging the correctness and legality of the judgment and order dated 22/01/2019 passed by the District Judge-5 and Additional Sessions Judge, Nagpur dismissing the applicants’ revision application and confirming the order dated 28/01/2013, passed by the Judicial Magistrate First Class, issuing process against the applicants for the offence punishable under Section 500 of the Indian Penal Code (IPC). The non-applicant, while working on the post of General Manager in the applicant No.1 company, was informed vide letter dated 08/02/2011 that his services are no longer required and not to report for duty w.e.f. 09/02/2011.

Procedural History

The non-applicant filed a criminal complaint for defamation under Section 500 IPC. The Judicial Magistrate First Class, Nagpur, issued process against the applicants on 28/01/2013. The applicants filed a revision before the Sessions Court, which was dismissed on 22/01/2019. Thereafter, the applicants filed the present application under Section 482 CrPC before the High Court.

Acts & Sections

  • Indian Penal Code, 1860 (IPC): 500
  • Code of Criminal Procedure, 1973 (CrPC): 482
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