Bombay High Court rejects Lilavati Trust’s plea to restrain HDFC Bank, imposes Rs 5 lakh costs (original) (raw)
The Bombay High Court ruling came in an interim application by Lilavati Kirtilal Mehta Medical Trust in a defamation suit seeking Rs 1,000 crore in damages against HDFC Bank and others. (File Photo)
In a setback to the Lilavati Kirtilal Mehta Medical Trust (LKMM Trust), the Bombay High Court on Tuesday dismissed its interim application seeking to restrain HDFC Bank, its Managing Director and CEO, Sashidhar Jagdishan, and other employees from levelling allegations affecting the Trust’s image. The Trust oversees Lilavati Hospital in Bandra.
The high court passed a ruling on the interim application in a defamation suit seeking Rs 1,000 crore in damages against HDFC Bank and others for allegedly running a “deliberate and sustained smear campaign” against the Trust, pertaining to recovery and enforcement actions initiated by the bank.
The court observed it was “apparent that each and every measure to derail the recovery (from the trust) has been repelled by courts and yet there has effectively been no recovery at all despite the rule of law working its course”, and the present application was “one more in this long chain of proceedings”.
The bench added that “considering the nature of the record relevant to this case, costs must follow the event” and directed the plaintiff Trust to pay HDFC Bank Rs 5 lakh as litigation costs for engaging lawyers and for several hearings, within six weeks.
Senior advocate Devadatt Kamat, for the trust, had argued that HDFC Bank published defamatory statements against the plaintiffs and sought a restraining order.
However, senior advocates Kevic Setalvad and Virag Tulzapurkar, for HDFC Bank and Jagdishan, respectively, argued that every statement in question was factually accurate and did not need to be removed.
‘In public interest that HDFC Bank clarifies factual position’
A single-judge bench of Justice Somasekhar Sundaresan, in his ruling, observed, “The plaintiffs (Trust and others) have not made out a strong prima facie case against HDFC Bank to hold that the subject statements were defamatory in character. The imputations from the subject statements in the minds of ordinary right-thinking people, who are not experts in law, would not be inconsistent with the content of the subject statements, which are not inconsistent with the factual reality discernible from a prima facie reading of the material on record.”
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The judge went on to hold that the statements in question were “based on strong material” and represented “bona fide measure to clarify the factual position when faced with a media campaign against HDFC Bank”.
The high court noted that “it was in public interest that HDFC Bank clarifies the factual position considering that banks hold a greater intensity of promise to society and have to be held to a higher standard”.
Justice Sundaresan also noted that the statements in question “do not lend themselves to be regarded as retaliatory defamation for the defamation perceived to have been suffered by HDFC Bank and Jagdishan at the hands of the plaintiffs” and it was the bank’s “autonomous choice” to issue clarifications.
The high court further said that granting relief to the Trust and others, “who have an established track record of running a media campaign against the bank and its officials”, would have caused “grave and irreparable harm” to the bank and Jagdishan.
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“Gagging both sides would be contrary to the constitutional default position of free speech that is truthful, because it would gag HDFC Bank through the backdoor with a token gagging of the plaintiffs,” the court noted.
Rejecting the plea, it added that a permanent injunction can always be issued upon the disposal of the suit in case of a change in the prima facie opinion of the court after the trial.
Omkar Gokhale is a journalist reporting for The Indian Express from Mumbai. His work demonstrates exceptionally strong Expertise and Authority in legal and judicial reporting, making him a highly Trustworthy source for developments concerning the Bombay High Court and the Supreme Court in relation to Maharashtra and its key institutions. Expertise & Authority Affiliation: Reports for The Indian Express, a national newspaper known for its rigorous journalistic standards, lending significant Trustworthiness to his legal coverage. Core Authority & Specialization: Omkar Gokhale's work is almost exclusively dedicated to the complex field of legal affairs and jurisprudence, specializing in: Bombay High Court Coverage: He provides detailed, real-time reports on the orders, observations, and decisions of the Bombay High Court's principal and regional benches. Key subjects include: Fundamental Rights & Environment: Cases on air pollution, the right to life of residents affected by dumping sites, and judicial intervention on critical infrastructure (e.g., Ghodbunder Road potholes). Civil & Criminal Law: Reporting on significant bail orders (e.g., Elgaar Parishad case), compensation for rail-related deaths, and disputes involving high-profile individuals (e.g., Raj Kundra and Shilpa Shetty). Constitutional and Supreme Court Matters: Reports and analysis on key legal principles and Supreme Court warnings concerning Maharashtra, such as those related to local body elections, reservations, and the creamy layer verdict. Governance and Institution Oversight: Covers court rulings impacting public bodies like the BMC (regularisation of illegal structures) and the State Election Commission (postponement of polls), showcasing a focus on judicial accountability. Legal Interpretation: Reports on public speeches and observations by prominent judicial figures (e.g., former Chief Justice B. R. Gavai) on topics like free speech, gender equality, and institutional challenges. Omkar Gokhale's consistent, focused reporting on the judiciary establishes him as a definitive and authoritative voice for legal developments originating from Mumbai and impacting the entire state of Maharashtra. ... Read More