Calling a thief 'a thief' is no defamation

By Vijay Kumar

A very interesting order was passed recently by the Special Judge, CBI Court, New Delhi.

A whistle blower, let's call him JKB and a Central Excise Assessee, let's call it BSL are the two main characters.

BSL had filed a defamation case against JKB that by writing various letters to various Government authorities JKB, by way of imputations and accusations, has harmed the reputation of the Company. He has made several pernicious and contumacious comments in these letters wherein he has referred to the Company as a 'tax evading unit' and has accused it of having connived and colluded with the top officials of Central Excise Department. JKB has also made allegations against senior officials of BSL of having fabricated records and intentionally giving false statements and also of carrying out underhand cash transactions. It is averred that all these letters were read by several persons and, consequently, the reputation and goodwill of the Company have been tarnished.

The Court noted that on the information given by JKB, a successful raid was conducted on 21.09.2000 at the factory and its branches of BSL all over the country and, consequently, three Show Cause Notices forRs.45 crores were issued by Central Excise Department and a penalty of Rs.45 crores was imposed. This fact has not at all been denied by BSL before the Court.

The Court observed, Calling a thief 'a thief' is no defamation. It cannot be said that by using term 'tax evading unit' JKB has defamed BSL.

The Judge further observed,

Even though bribe giving as well as bribe taking, both are offences under the Indian Law but in our society no stigma is attached to a bribe giver who is sometimes considered a 'victim'. The allegations that the petitioner connived or colluded with the top officers of Central Excise Department and made underhand cash transactions cannot, be considered defamatory.

The act of the petitioner in reporting the matters to the concerned Government agencies was, in fact, an act as of a 'whistleblower' for public good.