Prima Facie Defamatory: Delhi Court Injuncts Sale/ Circulation Of Book On Yes Bank Co-Founder Rana Kapoor

Rana Kapoor, the co-founder of Yes Bank Ltd. (plaintiff) filed an application under Order 39 Rule 1 & 2 CPC seeking a stay against the publisher (defendant no.1) and the author (defendant no.2) of the book. Kapoor claimed that the book contained remarks which were defamatory against him and tarnished his goodwill and reputation. Further, he claimed that the remarks in the book may prejudice the ongoing investigation and the trial against him.

District Judge Naresh Kumar Laka of the Tis Hazari Courts observed that if the defendants could prove the statements in the book, no action would lie for publication of any defamatory statements. However, an individual cannot be defamed based on untrue facts. The Court observed,

“One thing is clear that a publisher or reporter is within its/his right to print anything whether defamatory or not, provided same is based on truth or fair comment or fair criticism. But at the same time, even if a person is a public figure, he cannot be defamed based on untrue facts or when the content is palpability false or malicious.”

Defendants had argued that none of the statements in the Book even remotely approach the kind of statements already made about Kapoor in the public domain, including through several news articles.

However, Court observed that when a defamatory statement is put forward by way of rumor or report only, it is not sufficient to prove that the rumor or report really existed but it is necessary to prove that it was true. It further noted that the statements in the book which are not based on any previous news report or source “are required to be examined on the basis of their face value.”

The Court then examined if the book was based on true facts or motivated by malice.

After analysing excerpts from the book, the Court found several passages to be defamatory towards Kapoor. The contents that the Court found to be defamatory include statements portraying Kapoor as arrogant and an erstwhile tycoon, statements about his management style and statements about Kapoor organising credit approvals for clients without managerial sanction. The Court was of the opinion that these statements were without any basis and lacked any verifiable truth.

Defendants then argued that there is a difference in the publication of a book and a news article because generally a book does not have wide publication like a newspaper and same can be read only by the reader who purchases it after spending the amount of the book. Therefore, it will not a defamation in the eyes of general public.

Disagreeing, the Court held,

"A defamatory statement not based on truth or substantial supporting material, if accessible to public at large (consisting of a few persons or a huge mass), whether contained in any news article, book, website or any other platform, is a breach of the fundamental right under Article 21 of the Constitution of India and it does not make any difference whether it is published in a news article or a book."

Therefore, the court held that the plaintiff had established a prima facie case against the defendants, for harming his reputation based on statements that were not completely true.

“The balance of convenience will also lie in favour of the plaintiff because, the reputation of the plaintiff once defamed in the eyes of reader of the book, it cannot be reversed back, if the plaintiff finally succeeds in the present case whereas the defendant will have only monetary loss only which is not greater than the reputation of the plaintiff because there is a general saying that “It takes long years to build a reputation for a person/institution but it just takes a moment to spoil it”” it said.

The Court directed the defendants to stop the sale, circulation and distribution of the book during pendency of the suit.

Additionally, it restrained the defendants from authoring, re/publishing or communicating any defamatory statements about the plaintiff and also directed the removal of two articles published in 'The Print' about the plaintiff.

Case title: Rana Kapoor vs. Harper Collins Publishers India Pvt. Ltd. & Ors (CS No.DJ 356/22)