ORDER
A. Ramamurthi, J.
1. These applications are filed by the applicant/plaintiff to grant an order of interim injunction restraining the respondents and their men from printing, publishing, circulating, distributing or marketing the issues dated 10-3-2000, 17-3-2000.24-3-2000, 31-3-2000, 7-4-2000, 14-4-2000, 21-4-2000, 28-4-2000 and 5-5-2000 and any other issue published pending disposal of this suit and also to appoint an Advocate Commissioner to seize the issues of the magazine Naveena Nettrikkan in respect of the dates mentioned above and any further issues containing defamatory articles about the applicant company, wherever they may be found and destroy the same.
2. The case in brief for disposal of these applications is as follows :
The applicant/plaintiff filed a suit against the respondents for a sum of Rs. 25 lakhs towards damages together with interest and for permanent injunction restraining them from circulating, distributing or marketing the relevant issues or publishing any further defamatory and libellous material against its company or its directors, executives and employees. The applicant company is engaged in manufacturing of fertilizers and fertilizers products. The company is one of the largest of its kind and has developed a high degree of reputation both in India and abroad. It is primarily engaged in the manufacture and marketing of agricultural inputs. It is among the front ranking industrial conglomerates in India with a turnover of Rs. 2800 crores. It has diversified operations run through its divisions and associate companies. Its investments into chemicals and petrochemicals, petroleum products are aimed at ensuring fair returns through meaningful business.
3. The first respondent is the Editor, Publisher and Printer of a Tamil weekly magazine ‘Naveena Nettrikkan’, purporting to be published every Friday. The 2nd respondent is a writer contributing articles to the first respondent, as can be seen from the publication which is the subject matter. The first respondent has, in the issues of his magazine dated 10-3-2000, 17-3-2000, 24-3-2000, 31-3-2000, 7-4-2000, 14-4-2000, 21-4-2000. 28-4-2000 and 5-5-2000 been publishing false and scandalous materials about the applicant recklessly and maliciously, without verifying the correctness of the statement made. All the 9 issues of the weekly magazine have been filed along with the plaint. All the articles, apart from being false in their contents have been published with an intention to undermine the reputation of the applicant company in the eyes of the public. The respondents have indulged in systematic campaign to repeatedly defame the company, its directors and its executives past and present and their family members. The imputation that they are indulging in criminal acts and immoral, unethical practices in connection with the company’s business is calculated to harm the reputation of the company in trading and commercial circles. The offending portions in the issue are also set out in the annexures 1 to 9 to the plaint. In the issue dated 10-3-2000 the very title in Tamil reads “Mooduvizha Kaanum SPIC’ suggesting the closure of the applicant company. The issue also speaks of employees being compulsorily retired and that a loving notice to this effect was released by the applicant. The mention of a scheme of compulsory retirement is wholly false. What has been announced is a scheme of voluntary retirement for its employees wherein several benefits have been conferred on such employees who opt for the scheme and is in the nature of a welfare scheme. The scheme is totally voluntary and any reference to any compulsion is false. In the issue dated 17-3-2000, it is stated that the applicant had made arrangements to transfer its heavy chemicals division by dubious means and that all arrangements had been made to have the resolution passed at a meeting to be held on 24-3-2000 and that arrangements had been made at Kamaraj Arangam for a suitable ‘Pooja’ for those who questioned or raised their voice against this move. It is further stated that the prices of the shares were manipulated from Rs. 80/- to Rs. 14/- in the share market and the company was purchasing, di-ammonium phosphate from Shenegal and Jordan by over-invoicing the material by 30 dollars. The statements made therein are not correct. It will undermined the reputation of the company and create prejudice in
the minds of shareholders and the general public.
4. In the issue dated 24-3-2000 it is stated that the subsidy ranging from Rs. 400/- to Rs. 500/- crores was being misappropriated by the company. Such subsidy was meant for the benefit of the farmers. The title of the article in the issue indicates that the managing director had swallowed Rs. 500 crores. The very same product urea is under Government pricing control. They should sell urea at a price fixed by it. The Government compensates the difference between the sale price and the aggregate of the cost of sales and a reasonable return on shareholder’s funds employed to Urea manufacturers. This compensation is provided under a scheme called Retention Pricing Scheme. The subsidy given by the Government goes only to compensate the cost of production.
5. In the issue dated 31-3-2000, it is stated that the applicant has planned to cheat the shareholders and the Government, arranging the sale of the heavy chemicals division to the Ambani Group. Another director of the Company Thiru A. Santhanakrishnan has amassed a sum of Rs. 300 crores out of the company. These statements are false. In the issue dated 7-4-2000, the very title suggests that Government officials are supplied with wine and women. The respondents go on to state that there was a mock meeting held on the 8th floor of the building of the applicant where the Government officials attended the mock meeting entertained with wine and women and for such reasons, no government official attended the Extraordinary General Meeting. People, other than the supporters of Mr. A.C. Muthiah, were physically driven away. This issue further stated that the betrothal ceremony of the third son of the Managing Director of the company was held at the Park Sheraton Hotel at the cost of the applicant company. The issue also speaks about female employees in the applicant company especially the receptionists being harassed. The statements made by the respondents amount to alleging outraging the modesty of women and even goes to the extent of alleging virtually immoral trafficking. There has been no cause for complaint of any nature from any such female employees till this date. The statements are per se defamatory and malicious. There was no mock meeting held as stated.
6. In the issue dated 14-4-2000 it is stated that cheques issued to employees opting for the retirement scheme had been returned and they were unpaid. It is also far from truth. All of them have been paid compensation in terms of the scheme. In the issue dated 21-4-2000, the title once again suggests that the funds of the company were used for an abortion on one Kasturi. It is further stated that the Chairman of the company had mafia connections and with persons involved in transporting heroin. An imputation has been made against another executive Mr. Stalin, who is stated to have used company funds for procuring a property worth about Rs. 60 lakhs for an air hostess. All these statements are false and aimed at damaging the reputation of the applicant company. The other allegations about misuse of company’s funds for abortion on a cine actress are also false and malicious. It is stated in the issue dated 28-4-2000 that the Managing Director has amassed over Rs. 1000 crores out of the applicant company. In the issue dated 5-5-2000 it is stated that under the housing scheme. 130 houses were built but no keys had been handed over to anyone and that the employees of the organization had thus been cheated. In fact, loans for this purpose were disbursed at an interest rate of 7% per annum. The employees have been largely benefited from the scheme. The bonds were offered to the employees in 1992 at Rs. 625 per bond. The allegations are made recklessly without even attempting to verify the same. It is reliably understood that the respondents intend to continue the tirade against the applicant company even in future issues and the next issues is imminent. It would lower the reputation of the applicant company in trading and commercial circles and also in the eyes of the general public. The reckless and defamatory publication is liable to be put down with an iron hand. The fair comment and factual reporting can be permitted. There is neither truth nor good faith in making of the publication nor is there any question of any public good involved as the imputations are false. The balance of convenience is also only in favour of the applicant. It is absolutely necessary to prevent such false publications which tend to bring disrepute to the applicant company and its directors, executives and employees. Hence, these applications.
7. The respondents have been served and affidavits of service have also been filed. The respondents have received the same on 7-6-2000. In spite of service, the respondents neither appeared nor engaged any counsel. The Office was directed to print the name of the respondents also in the cause list and In spite of printing and even after the lapse of nearly two months, the respondents have failed to appear before this Court to oppose the applications or engage any counsel to defend them.
8. Heard the learned counsel for the applicant.
9. The points that arise for consideration are–
1) Whether the applicant company has got prima facie case and the balance of convenience is in their favour ?
2) Whether there are justifiable reasons to appoint an Advocate Commissioner to seize the various issues of the magazine Naveena Nettrikkan as mentioned in the schedule to the Judge’s summons ?
3) To what relief ?
9-A. Points: The applicant company has filed the suit against the respondents for a sum of Rs. 25 lakhs by way of damages and also for permanent injunction restraining them from circulating, distributing or marketing or publishing any further defamatory and libellous materials against the applicant company or its directors, executives and employees and the publication already made has to be seized by the appointment of the Commissioner. Learned counsel for the applicant pointed out various materials to show that the applicant company is a reputed one and their annual turnover is about Rs. 2800 crores. The defamatory statements made by the respondents in the various issues have been clearly narrated in the affidavit and they are extracted as above. Serious defamatory allegations are also levelled not only against the Chairman of the company but also the directors and employees working in the company. The copies of the publication made by the respondents have also been filed along with the plaint by the applicant company. A careful reading of the entire articles would clearly lead to a conclusion that serious defamatory allegations have been levelled from top to bottom only to malign the individuals for reasons best known to them. No doubt, the Press has got a freedom to give information and it should be bona fide and it should be based on factual information. There is no indication in any of the publications as to whether the publication has been made in good faith or based on any fact. In fact, learned counsel for the applicant produced a fax copy to show that the respondents filed S.L.P. Civil No. 1902 of 2000 before the Apex Court against the ex parte order of interim injunction granted by this Court and subsequently, they withdrew the same on 12-7-2000. It would Indicate that the respondents having received the order of ad interim injunction granted by this Court, without approaching this Court had gone to the Apex Court and ultimately withdrew the same for reasons best known to them. Having received the notices on 7-6-2000 the respondents have not chosen to appear before this Court and defend the case. If the information furnished by them in the various magazines referred to above are true, it is open to the respondents to defend the same by placing necessary materials. The very absence on the part of the respondents to come and defend the same itself is a strong circumstance to show that they are afraid to face the case filed by the applicant company. It would only lead to the irresistible conclusion that reckless allegations have been made against the applicant company and various other persons for reasons best known to them. The successive publications made by the respondents for a number of weeks is another indication to show that all is not well with the publication and with an ulterior motive, It must have been done. Even assuming that some of the allegations made have some basis, it is always open to the respondents to appear before this Court and defend the same on the ground that their information is factually correct. I am of the view that the respondents are afraid to face the case and therefore remained ex parte.
10. The entire reading of the publications referred to above clearly demonstrates that it is per se defamatory not only against the Managing Director but also other executives as well as workers. If any one happens to read the same, definitely it will give a wrong impression and the reputation of the company would be lost in the eyes of the public. Hence, I am of the view that it is just and proper that necessary direction has to be issued to the respondents preventing them to do the said act in future and unless an
order of interim injunction is granted, naturally the applicant company and the employees would be put to much shame. I am of the view that the applicant company has got prima facie case and the balance of convenience is in their favour.
11. For the reasons stated above, both the applications are allowed and interim injunction is granted, restraining the respondents and their man and any person claiming through them from printing, circulating, distributing or marketing the issues and any other issue as mentioned in the schedule to the Judge’s summons.
12. Thiru S. Ramalingam, M.S.W., B.L., Advocate, Chamber No. 22-B, High Court Old Building, is also appointed as Commissioner to seize the issues of the magazine Naveena Nettrikkan relating to the various dates given in the schedule to the Judge’s summons and any further issue containing defamatory articles about the applicant company wherever they may be found and produce the same before this Court for appropriate action. The Commissioner is directed to give notice to the parties concerned prior to inspector and seizure. The Commissioner if necessary can make use of the police also for carrying out the work. His initial remuneration of Rs. 5,000/- shall be paid by the applicant directly. Report in 4 weeks.