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Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
  • Order VIII Rule 10 CPC.5.
  • Order VIII Rule 10 CPC.
  • Order 11 Rule 12 CPC
  • Order 9 Rule 7
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
  • Order VIII Rule 10 CPC.5.
  • Order VIII Rule 10 CPC.
  • Order 11 Rule 12 CPC
  • Order 9 Rule 7
Smart Summary

Factual and Procedural Background

The plaintiff filed a suit claiming Rs. 2 crores in damages for defamation against defendants 1 and 2. Defendant No. 1 is the Director of Defendant No. 2, which claims to be a research laboratory. The plaintiff sought a perpetual injunction restraining the defendants from publishing defamatory statements concerning the Nickel content in the plaintiff's chocolates, as detailed in paragraphs 5 to 15 of the plaint. The defamatory imputations were published in a series of articles and write-ups exhibited as B to H.

The suit was transferred from the High Court of Bombay to this Court pursuant to Supreme Court orders dated 24.11.1995. The defendants appeared on 1.5.1996 but failed to file a written statement, leading to ex-parte proceedings on 12.5.1998. The defendants successfully applied to set aside the ex-parte order under Order 9 Rule 7, subject to costs. They were granted time to file a written statement but instead sought further particulars, which was dismissed with costs. Despite repeated opportunities, the defendants did not file the written statement nor pay the imposed costs. On subsequent dates, defendants failed to appear or provide clarity on filing the written statement, prompting the court to consider proceeding under Order VIII Rule 10 CPC.

Legal Issues Presented

  1. Whether a perpetual injunction should be granted restraining defendants from publishing defamatory statements regarding the Nickel content in the plaintiff’s chocolates.
  2. Whether damages, nominal or otherwise, are appropriate in the context of the defamatory imputations published by the defendants.
  3. The procedural question of proceeding under Order VIII Rule 10 CPC due to defendants’ failure to file a written statement despite opportunities.

Arguments of the Parties

Plaintiff's Arguments

  • The defamatory imputations published by defendants are without foundation or research and damage the plaintiff’s reputation as a reputed manufacturer of Cadbury chocolates.
  • The plaintiff is primarily interested in vindicating its position and obtaining a permanent injunction rather than recovering the full claimed damages.
  • The plaintiff confined the claim for damages to a nominal sum of Rs. 100/-.

The opinion does not contain a detailed account of the defendants' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Order 9 Rule 7 CPC Setting aside ex-parte orders Defendants' application to set aside the ex-parte order was allowed subject to costs.
Order 11 Rule 12 CPC Dismissal of application for further particulars with costs Application by defendants seeking better particulars was dismissed with costs.
Order VIII Rule 10 CPC Proceeding when defendant fails to file written statement The suit was decreed under this provision due to defendants' failure to file written statement despite repeated opportunities.

Court's Reasoning and Analysis

The court considered the plaint and attached exhibits and found the plaintiff had established a prima facie case for granting a perpetual injunction. The defamatory imputations concerning the Nickel content in the plaintiff’s chocolates were deemed per se defamatory and published repeatedly without any justification or defense from the defendants. The court acknowledged the general principle that prior restraint on freedom of expression is not favored but held that in cases of repeated, malafide defamatory imputations without defense, injunctions are warranted to protect reputation.

Given the defendants’ failure to file a written statement despite repeated chances and non-payment of costs, the court proceeded under Order VIII Rule 10 CPC. The plaintiff’s claim for damages was limited to a nominal sum, which the court awarded accordingly. The injunction was framed narrowly to restrain any further publication or repetition of defamatory statements relating to the Nickel content in the plaintiff’s chocolates.

Holding and Implications

The suit is decreed under Order VIII Rule 10 CPC.

The court awarded nominal damages of Rs. 100/- to the plaintiff and granted a perpetual injunction restraining the defendants from publishing or republishing any defamatory statements or allegations concerning the Nickel content or use of Nickel in the chocolates manufactured or marketed by the plaintiff. This decision vindicates the plaintiff’s reputation and restricts the defendants from further defamatory publications on the specified subject. No broader precedent beyond the immediate parties was established.

    Cadbury (India) Ltd. v. M.C Saxena.

    Manmohan Sarin, J. (ORAL)— The plaintiff has filed the present suit claiming damages of Rs. 2 crores for defamation against defendants 1 and 2. Defendant No. 1 is stated to be the Director of defendant No. 2, the latter claiming to be a research laboratory. Perpetual injunction is sought to restrain the defendants from further writing or publishing or re-publishing, articles, news items containing allegations or defamatory statements similar to those set out in para 5 to 15 of the plaint relating primarily to the Nickel content or use of Nickel in the chocolates manufactured by the plaintiff.

    2. The plaintiff has averred that the defamatory imputations attributed to defendants were published in a series of articles and write-ups which have been produced alongwith the plaint as exhibits B to H. This suit was transferred from the High Court of Bombay to this Court vide orders of the Supreme Court persuant to the orders passed on 24.11.1995 The Defendant entered appearance on 1.5.1996 and sought time to file the written statement. Written statement was not filed. Defendants were accordingly proceeded ex-parte on 12.5.1998 Defendants thereupon, moved an application, I.A No. 5001/99 under Order 9 Rule 7 for setting aside the ex-parte order. The application was allowed subject to payment of costs of Rs. 7,500/- to the Delhi Legal Services Authority. Time was further granted file Written Statement within four weeks from 110.9.99 Instead of filing the written statement, the defendants moved an application, I.A No. 10657/99 seeking further information and better particulars.

    3. The said application was dismissed by this Court on 11.11.1999 with costs of Rs. 3000/-. Despite repeated opportunities granted to file the written statement, it has not been filed. Neither have the costs imposed for setting aside the ex-parte proceedings or imposed while dismissing the application under Order 11 Rule 12 CPC been paid.

    4. When the matter came up on 11.11.1999, in the interest of justice, it was again directed to be renotified on 15.12.1999 For non-appearance of the defendant on 15.12.1999 no adverse order was again passed and the matter was directed to be renotified today i.e 20.12.1999 Today, Ms. Sushmita Lal, proxy counsel for defendant appears. She is unable to say anything with regard to filing of the written statement i.e Whether the written statement is ready or not? She simply seeks adjournment on the ground of non-availability of the counsel.

    In these facts and circumstances, I am not persuaded to further adjournment. This is a matter which deserves to be proceeded under Order VIII Rule 10 CPC.

    5. The plaintiff has filed claim for damages of Rs. 2 crores on account of the defamatory imputations, published. Learned counsel for the plaintiff, on instructions, states that the plaintiff is not really interested in recovering the said amount of damages and would be satisfied, if its position is vindicated and the defendant is prohibited by a decree of permanent injunction from writing or publishing further defamatory articles in relation to the alleged Nickel content in the chocolates manufactured by the plaintiff. Plaintiff, accordingly, confines his claim for award for damages to a nominal sum of Rs. 100/-.

    6. The plaint and the documents attached thereto, have been perused. The substance of the plaintiffs claim is that the plaintiff is a reputed manufacturer of the well-known CADBURY CHOCOLATES and the defamatory imputations contained in exhibit B to H which have been published, are per se defamatory. The plaintiff contends that these allegations are without any foundation or research. The defendant has failed despite repeated opportunities to come forward with any plea of defence either by way of justification or fair comment.

    7. Having perused the plaint and the articles in question, I am satisfied that the plaintiff has made out a good ground for the grant of a perpetual injunction restraining the defendants from publishing or re-publishing or making any oral or written statement or giving any press interviews or press conferences containing any allegations or defamatory statements based on exhibits B to H confined to and regarding the Nickel content or use of Nickel in the chocolates manufactured or marketed by the plaintiff.

    8. While granting a prior restraint on defamatory imputations being published by defendants with regard to the Nickel content of chocolates manufactured by the plaintiff, the Bench is conscious that prior restraint which would impinge upon the right to freedom of expression is normally not granted. However, in case of per se defamatory imputations being repeatedly published, malafide or with ulterior motives or for which no justification or defence is offered, an injunction should follow to protect the fair reputation of the person concerned.

    9. Accordingly, I decree the suit under Order VIII Rule 10 CPC. However, as the plaintiff has confined its claim to a nominal sum of Rs. 100/- I award Rs. 100/- as nominal damages against the defendants and restrain them from, in any manner writing or publishing or re-publishing or making any oral or written statements or giving any press interviews or press conferences containing any allegation or defamatory statements in relation to the Nickel content or use of Nickel in the Chocolates manufactured or marketed by the plaintiff.

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    Comments

    Cadbury (India) Ltd. v. M.C Saxena.
    (Dec 20, 1999)