Bombay HC quashes notice issued to HDFC MD Jagdishan by magistrate's court in defamation complaint

HDFC Bank CEO Sashidhar Jagdishan

The Bombay High Court has quashed an order of a local court in Mumbai issuing notice to HDFC Bank Ltd managing director and CEO Sashidhar Jagdishan over a defamation complaint lodged by the trustee of Lilavati Kirtilal Mehta Medical Trust.

Granting relief to Jagdishan, the Bombay High Court set aside an order passed by a Judicial Magistrate issuing notice to him in a private complaint lodged against him by Lilavati Kirtilal Mehta Medical Trust.

A bench of Justice SM Modak, on August 5, said the magistrate ought to have first verified the complaint before issuing notice to the proposed accused.

Prashant Mehta, permanent Trustee of Lilavati Kirtilal Mehta Medical Trust, had filed a private complaint before Girgaon judicial magistrate's court seeking registration of an offence against Jagdishan under Bharatiya Nyaya Sanhita provisions pertaining to defamation.

In June this year, the magistrate issued notice to Jagdishan, who then moved HC.

In the order, a copy of which was made available on Monday, Justice Modak said as per law, until the verification is recorded, the stage of hearing of accused will not come.

"There is a purpose of recording the verification. It gives an opportunity to the magistrate to ascertain whether to proceed further or not," HC said.

Justice Modak, in the order, noted that after filing of a private complaint there has to be verification of the complainant and witnesses and before decision is taken on cognizance, the proposed accused needs to be heard.

The judge, refused to accept Lilavati's arguments by senior advocate Aabad Ponda that the proviso to section 223 of the Bharatiya Nagarik Suraksha Sanhita (BNSS) justifies the Magistrate in issuing notice to the proposed accused as it should grant a right of audience to the said accused, before taking cognisance of the complaint.

"Mr Ponda has argued vociferously to convince me to take a view that notice is required prior to recording verification. He was as forceful in his submissions as usual. He has also used all his persuasive skills to convince me to take that view. But unfortunately I cannot put a nod to his arguments for the reason that was not the intention of legislature," Justice Modak said in the order.

The order of issuance of notice is quashed and set aside, Justice Modak said, adding the magistrate was at liberty to proceed with the matter by recording the verification of the complainant and all witnesses, if any, and then pass the appropriate order.

The Lilavati hospital trust had earlier lodged a case against the bank and Jagdishan accusing them of bribery and cheating.

In its FIR, the Trust accused Jagdishan of accepting a bribe of Rs 2.05 crore from erstwhile Trustee Chetan Mehta, for giving him financial advice and helping him to retain control over the Trust's governance.

It further accused Jagdishan of interfering in its internal affairs by misusing his position as the head of the HDFC bank.