SC dismisses plea against stay on Rs 2 Cr damages for defamatory remarks by Devegowda against NICE [Read Order]

NEW DELHI: The Supreme Court has on Friday dismissed a petition filed by M/s Nandi Infrastructure Corridor Enterprise (NICE) Ltd against the Karnataka High Court order which stayed a trial court's direction to former Prime Minister H D Devegowda to pay Rs two crore for his alleged defamatory remarks against the company.

The court, however, said the public figures must avoid making any irresponsible statements which impact reputation, share price, investment and business of corporate entities.

A bench of Justices D Y Chandrachud and Hima Kohli said we are not inclined to entertain a petition under Article 136 of the Constitution, as the High Court had already restrained Devegowda from making any further defamatory statements.

The court also noted, "The High Court has passed a discretionary order staying the execution of the decree passed by the trial court imposing compensation in a suit for defamation pending the first appeal."

The apex court also pointed out the High Court has also directed that Devegowda should not make any statement, which is defamatory, pending the first appeal.

"If there is any breach of that direction by Devegowda, the petitioner would be at liberty to move the High Court for vacating the interim order," the bench said.

The bench also said, "We also clarify that the observations in the impugned order shall not weigh in the final disposal of the first appeal since it was confined to the question of interim stay of execution of the decree."

The High Court had on February 17, 2022 stayed the trial court's order.

Senior advocate Neeraj Kishan Kaul, appearing for the company, contended the High Court could not granted stay in favour of the respondent without depositing the decretal amount for providing for the guarantee for it.

In its order on the defamation suit, the trial court had on June 17, 2021, directed Devegowda to pay Rs two crore as damages to the Nandi Infrastructure Corridor Enterprises (NICE) for his "defamatory statement" against the company in a television interview 10 years ago.

The NICE was entrusted to build the Bengaluru-Mysuru Infrastructure Corridor (BMIC), a six lane expressway connecting the two cities.

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