Jeffrey J. Diermeier and Anr. v. State of West Bengal & Anr.
D.K. JAIN, J. 1. Leave granted.
2. This appeal, by special leave, arises from the judgment
dated 18th November 2008 rendered by a learned Single Judge
of the High Court of Calcutta in C.R.R. No. 523 of 2008. By the G
impugned judgment,.the learned Judge has dismissed the
petition preferred by the appellants under Section 482 of the
of the Code of Criminal Procedure, 1973 (for short "the Code")
seeking quashing of a private complaint filed by respondent
No.2 in this appeal, for an offence under Section 500 read with H
A Section 34 of the Indian Penal Code, 1860 (for short "the IPC").
3. The facts, material for the purpose of disposal of this
appeal, may be stated thus:
Appellant No.1 is the President and Chief Executive
B Officer of the Chartered Financial Analysts Institute (hereinafter
referred to as "CFA Institute"), incorporated under the laws of
the State of Virginia, United States. Appellant No.2 is the
President of the Indian Association of Investment Professionals,
who is a member of the society of CFA Institute CFA Institute
C is a non stock corporation and confers the designation of Chief
Financial Analyst ("CFA" for short) upon its members who fulfil
a minimum professional criterion. CFA certification is
considered to be a definitive standard for professional
competence.
4. In the year 1985, on being approached by the Institute
of Chartered Financial Analysts of India (for short "ICFAI"),
respondent No.2 herein, a registered society, having its office
at Kolkata, CFA Institute entered into a licence agreement with
E them to conduct its CFA program in India. The agreed
arrangement continued for quite some time. However, realising
that respondent No.2 was not adhering to the required
standards and quality in the said program, CFA Institute
decided to wean off its arrangement with ICFAI - respondent
No.2. Since, in the meanwhile, respondent No.2 was attempting
F to get the trademarks of CFA Institute registered in India, in the
year 1997, CFA Institute issued a notice of termination of its
licence with the said respondent. On receipt of the said notice,
respondent No.2 filed a declaratory suit before the District
Courts in Hyderabad, seeking a declaration regarding the
G change of their name "ICFAI" and their use of the designation
"CFA". However, they did not succeed in getting any interim or
final relief in the said suit. In the year 2004, CFA Institute filed
a Civil Suit [C.S.(OS) No.210 of 2004] in the High Court of
Delhi for permanent injunction restraining respondent No.2 from
JEFFREY J. DIERMEIER AND ANR. v. STATE OF 137
WEST BENGAL & ANR. [D.K. JAIN, J.]
using the trade marks, services, service marks or trade name A
CFA, Chartered Financial Analyst, The Institute of Chartered
Financial Analysts of India, ICFA and ICFAI or any other name
or mark which may be identical or deceptively similar to these
marks and passing off CFA Institute Programs or business as
that of CFA Institute. Vide Order dated 4th August 2006, the B
High Court passed the following order by way of interim relief:
"30. In view of the above, I allow the application under
Order XXXIX Rules 1 & 2 CPC and restrain the
defendants, during the pendency of the suit from using any C
of the trademarks or service marks CFA, Chartered
Financial Analyst, The Institute of Chartered Financial
Analysts of India, ICFA and ICFAI or any other name or
mark which may be identical or deceptively similar to these
marks and from passing off their programmes or business
as that of the plaintiffs. However, this order of injunction D
will not come into effect till the end of current academic
session of the CFA Programme run by the defendants.
Nor will anything said herein will mean final expression of
opinion of this Court."
[Emphasis supplied]
5. On 30th January 2007, respondent No.2, through its
sponsored University in Tripura - The Institute of Chartered
Financial Analysts of India University, Tripura (hereinafter
referred to as "the University"), issued an advertisement inviting
applications for fresh enrolments for award of "CFA"
certification. According to CFA Institute, since the programmes
which were current at the time of passing of the order of interim
injunction by the High Court of Delhi on 4th August 2006 had
come to an end in January 2007, the invitation for fresh G
enrolment in terms of the advertisement issued on 30th January
2007 was for subsequent programmes, which were not current
at the time of the interim injunction order and, therefore, it was
in breach of the said interim injunction. Accordingly, on 12th
A February 2007, CFA Institute issued a public notice under the
caption "A Word of Caution to the Indian Investment
Community'', (hereinafter referred to as "Word of Caution"). The
relevant extract of the said publication reads thus:
"There is confusion over the "CFA" name in India, and you
deserve to know the facts. The Chartered Financial Analyst
(CFA(R)) designation from CFA Institute is the only globally
recognized CFA designation for financial professionals ..
However, the Institute of Chartered Financial Analysts of
India (lcfai) offe'rs an educational program specializing in
finance, which they term the "CFA Program", and awards
a title called the "CFA''.
On 4th August 2006, the Delhi High Court recognized that
CFA Institute owns the exclusive rights to the CFA
trademarks and that continued use by lcfai causes
irreparable harm. The court ordered an interim injunction
requiring lcfai to stop using the "Chartered Financial
Analyst" and "CFA" brands and to change its corporate and
"CFA" title names. Unfortunately, lcfai has continued its
unauthorized use of our trademarks by running
advertisements from an lcfai-sponsored university.
If you are planning to either hire an investment
professional or obtain a designation, you need to make
informed decision that benefit your future. Visit
www.cfainstitute.org/lndia for more information about
enrolling in the CFA Program, Scholarships, joining the.
IAIP, and the latest updates about our efforts to end this
confusion and support the Indian Investment Community."
(Emphasis added by us)
6. Alleging that the said public notice was defamatory
JEFFREY J. DIERMEIER AND ANR. v. STATE OF 139
WEST BENGAL & ANR. [D.K. JAIN, J.]
within the meaning of Section 499 of the IPC, respondent No.2 A
filed a private complaint against the appellants. The trial court
took cognizance of the complaint and issued summons to the
appellants. Feeling aggrieved by the summoning order, the
appellants preferred the afore-noted petition before the High
Court of Calcutta. As already stated, by the impugned judgment, B
the High Court has dismissed the said petition. Hence, the
present appeal by the accused.
7. Shri Shanti Bhushan, learned senior counsel appearing·
on behalf of the appellants strenuously urged that the High
Court gravely erred in declining to exercise its jurisdiction under C
Section 482 of th~ Code in a case wher~ the complaint ex facie
lacks basic ingredients of Section 499 of the IPC. Learned
counsel submitted that by offering a prospectus for a new
session beginning in the year 2007, which would be of 12-18
months duration, the University, a sponsored University of ICFAI D
had violated the injunction order issued by the High Court of
Delhi on 4th August 2006 and, therefore, in the wake of a
misleading advertisement, the appellants were compelled to
issue a "Word of Caution".
8. Learned counsel contended that from the provisions of
the Institute of Chartered Financial Analysts of India University,
Tripura Act, 2004 (for short "the Act"), it was clear that the
University was nothing but an alter ego of respondent No.2. In
support of the contention, learned counsel referred to certain
provisions of the Act showing that it is respondent No.2 who
appoints the Chancellor of the University and in turn the
Chancellor appoints the Vice-Chancellor; under Section 20 of
the Act, the Board of Governors consists of Chancellor, Vice
Chancellor and three other persons nominated by respondent G
No.2; under Section 21 of the Act, the Board of Management
consists of 9 persons of whom as many as 7 persons are to
be the nominees of respondent No.2. It was, thus, submitted
that all the acts of the University were really the acts of
respondent No.2 itself and, therefore, the advertisement issued H
A for fresh admission by the University was clearly in breach of
the order passed by the Delhi High Court. According to the
learned counsel, the effect of the advertisement dated 30th
January 2007 would have been to induce prospective students
to believe that joining the new course offered by the University
B in the year 2007 would entitle them to get CFA designation from
CFA Institute. It was argued that it was in these circumstances
and keeping in mind the public interest that the appellants had
issued a "Word of Caution" to the students who wished to obtain
CFA certification. Learned counsel asserted that the
c prosecution of the appellants on account of publication of the
said "Word of Caution" is an abuse of the process of the Court
inasmuch as the said "Word of Caution" published by them was
a public duty and thus, a legitimate expression. It was also
absolutely necessary and in public interest and was singularly
0 .covered by the Tenth Exception to Section 499 of IPC.
9. It was also the assertion of the learned counsel that the
contents of the "Word of Caution" did not in any way lower or
cast a reflection on the moral or intellectual character of
respondent No.2 and, therefore, Explanation 4 to Section 499
E of the IPC, which imposes restrictions in the law of defamation,
is clearly attracted in favour of the appellants. It was thus,
pleaded that in the light of Explanation 4 as well as Tenth
Exception to Section 499 IPC, the allegations in the complaint
did not constitute an offence of defamation punishable under
F Section 500 IPC and, therefore, the High Court ought to have
quashed the complaint. In support of the proposition, learned
counsel placed reliance on the decisions of this Court in the
case of State of Haryana Vs. Bhajan La/1 and Shatrughna
Prasad Sinha Vs. Rajbhau Surajmal Rathi & Ors.2 • Relying
G on Rajendra Kumar Sita ram Pande & Ors. Vs. Uttam & Anr. 3,
learned counsel argued that under the given circumstances,
1. 1992 supp. (1) sec 335.
2. < 1996) 6 sec 263.
H 3. (1999) 3 sec 134.
JEFFREY J. DIERMEIER AND ANR. v. STATE OF 141
WEST BENGAL & ANR. [D.K. JAIN, J.]
requiring the appellants to undergo trial would be travesty of A
justice.
10. Per contra, Shri K. K. Venugopal, learned senior
counsel appearing on behalf of respondent No.2 supported the
impugned judgment and submitted that all the grounds urged B
on behalf of the appellants for quashing the complaint involve
determination of disputed questions of fact for which the matter
has to go to trial and, therefore, the High Court was justified in
not analyzing and returning a finding on the truthfulness or
otherwise of the allegations in the complaint. Heavily relying on C
the majority view expressed by a Bench of three Judges in
Sewakram Sobhani Vs. R.K. Karanjia, Chief Editor, Weekly
Blitz & Ors.4, learned counsel argued that answers to the
questions whether the appellants were entitled to protection
under Explanation 4 or that the advertisement was issued in
"good faith" and for "public good" as contemplated in the Tenth D
Exception are questions of fact and matters for evidence and,
therefore, trial in the complaint must continue. In this behalf,
reliance was also placed on the decisions of this Court in M.N.
Damani Vs. S.K. Sinha & Ors.5 and Shriram Refrigeration
Industries Vs. Hon'ble Addi. Industrial Tribunal-Cum-Addi. E
Labour Court, Hyderabad & Ors. 6
11. Learned counsel argued that a reading of the offending
publication as a whole would show that omission of the
sentence "However, this order of injunction will not come into F
effect till the end of current academic session of CFA
programme run by the defendants nor will anything said herein
will meah final expression of opinion of this Court" was a
conscious and deliberate suppression intended to portray ICFAI
as a wrong doer, which has violated an injunction order passed G
by the High Court and in the process is in contempt of the said
order. According to the learned counsel, suppression of the fact
4. (1981) 3 sec 208.
s. (2001 > s sec 1 s6.
6. (2002) g sec 708. H
A that the interim injunction did not apply to the "current academic
session of the CFA Programme'', which was to conclude only
in May 2009; had subjected the students who were undergoing
the three year course to fear and anxiety that three years of their
lives would be wasted, giving the impression that respondent
B No.2 had cheated them. It was contended that the conscious
and deliberate omission of the last sentence of the order of
interim injunction was with the sole objective to deter the
students from enrolling in the CFA Programme offered by the
four Universities in the State of Uttarakhand, Meghalaya, Tripura
c and Mizoram by creating a fear psychosis amongst the
aspirants and, therefore, the offending publication was not in
"good faith" and "public interest" as is being pleaded by learned
counsel for the appellants.
12. Placing reliance on the decision of this Court in Chand
D Dhawan (Smt) Vs. Jawahar Lal & Ors.7 , learned counsel
submitted that since the High Court had observed that the
allegations in the complaint prima facie constituted an offence
under Section 499 IPC, it did not err in refusing to interfere in
the matter. Reliance was also placed on the decisions of this
E Court in Som Mittal Vs. Government of Karnataka8 and Som
Mitta/ Vs. Government of Karnataka9 to contend that power to
quash criminal proceedings is to be exercised in the rarest of
rare cases.
F 13. Shri Venugopal also contended that the University at
Tripura, not being a party to the suit at the time of passing of
the order by the High Court was not bound by the said order,
yet the statement in the advertisement that the continued
unauthorized use of appellant's trademark through the
G sponsored Universities is per se defamatory and has caused
immense harm to the image and reputation of respondent No.2
in the eyes of the Indian Investment Community as also the
1. (1992) 3 sec 317.
8. c2008) 3 sec 574.
H 9. c2ooa) 3 sec 753.
JEFFREY J. DIERMEIER AND ANR. v. STATE OF 143
WEST BENGAL & ANR. [D.K. JAIN, J.]
student community at large. A
14. Learned senior counsel strenuously urged that since
the stand of the appellants before the High Court was that they
were entitled to the protection of Fourth and Fifth Exceptions
to Section 499 IPC, they cannot now be permitted to rely upon B
Explanation 4 and Tenth Exception to Section 499 IPC so as
to build up a totally new case before this Court. In support of
the proposition that a new plea, which is essentially a plea of
fact, cannot be allowed to be urged for the first time at the
hearing of appeal under Article 136 of the Constitution before C
this Court, learned counsel placed reliance on the decisions of
this Court in Jagir Kaur & Anr. Vs. Jaswant Singh10 , State of
Bihar & Ors. Vs. Shyam Yadav & Ors. and D.S. Parvathamma
Vs. A. Srinivasan11 .
15. Thus, the question for consideration is whether or not D
in the light of the allegations as projected in the complaint
against the appellants, it was a fit case where the High Court
in exercise of its jurisdiction under Section 482 of the Code
should have quashed the complaint against the appellants?
E 16. Before addressing the contentions advanced on behalf
·of the parties, it will be useful to notice the scope and ambit of
inherent powers of the High Court under Section 482 of the
Code. The Section itself envisages three circumstances under
which the inherent jurisdiction may be exercised, namely, (i) to. F
give effect to an order under the Code; (ii) to prevent abuse of
process of Court; and (iii) to otherwise secure the ends of
justice. Nevertheless, it is neither possible nor desirable to lay
down any inflexible rule which would govern the exercise of
inherent jurisdiction of the Court. Undoubtedly, the power
possessed by the High Court under the said provision is very G
wide but is not unlimited. It has to be exercised sparingly,
10. [1964] 2 S.C.R. 73.
11. (1997) 2 sec 507.
12. (2003) 4 sec 705. H·
A carefully and cautiously, ex debito justitiae to do real and
substantial justice for which alone the court exists. It needs little
emphasis that the inherent jurisdiction does not confer an
arbitrary power on the High Court to act according to whim or
caprice. The power exists to prevent abuse of authority and not
B to produce injustice.
17. In one of the earlier cases, in R.P. Kapur Vs. State of
Punjab13 this Court had summarized some of the categories
of cases where inherent power under Section 482 of the Code
C could be exercised by the High Court to quash criminal
proceedings against the accused. These are:
(i) where it manifestly appears that there is a legal bar
against the institution or continuance of the
proceedings e.g. want of sanction;
(ii) where the allegations in the first information report
or the complaint taken at its face value and
accepted in their entirety do not constitute the
offence alleged;
(iii) where the allegations constitute an offence, but
there is no legal evidence adduced or the evidence
adduced clearly or manifestly fails to prove the
charge.
18. In Dinesh Dutt Joshi Vs. State of Rajasthan16, while
dealing with the inherent powers of the High Court, this Court
has observed thus:
" .... The principle embodied in the section is based upon
the maxim: quando lex a/iquid a/icui concedit, concedere
videtur et id sine quo res ipsae esse non potest i.e. when
the law gives anything to anyone, it gives also all those
things without which the thing itself would be unavailable.
1.3. AIR 1960 SC 866.
H 18. (2001) 8 sec s10
JEFFREY J. DIERMEIER AND ANR. v. STATE OF 145
WEST BENGAL & ANR. [D.K. JAIN, J.]
The section does not confer any new power, but only A
declares that the High Court possesses inherent powers
for the purposes specified in the section. As lacunae are
sometimes found in procedural law, the section has been
embodied to cover such lacunae wherever they are
discovered. The use of extraordinary powers conferred B
upon the High Court under this section are however
required to be reserved, as far as possible, for
extraordinary cases."
19. The purport of the expression "rarest of rare cases", r C
to which reference was made by Shri Venugopal, has been
explained recently in Som Mittal Vs. Government of Karnataka
(supra). Speaking for a bench of three Judges, Hon'ble the
Chief Justice said:
"When the words 'rarest of rare cases' are used after the D
words 'sparingly and with circumspection' while describing
the scope of Section 482, those words merely emphasize
and reiterate what is intended to be conveyed by the words ,
'sparingly and with circumspection'. They mean that the
power under Section 482 to quash proceedings should not E
be used mechanically or routinely, but with care and
caution, only when a clear case for quashing is made out
and failure to interfere would lead to a miscarriage of
justice. The expression "rarest of rare cases" is not used
in the sense in which it is used with reference to F
punishment for offences under Section 302 IPC, but to
emphasize that the power under Section 482 Cr.P.C. to
quash the FIR or criminal proceedings should be used
sparingly and with circumspection."
20. Bearing in mind the afore-stated legai position in G
regard to the scope and width of the power of the High Court
under Section 482 of the Code, we shall now advert to the facts
at hand.
21. As noted above, the gravamen of the allegations made H
A against the appellants in the complaint under Section 500 of
the IPC is that when on 30th January 2007, respondent No.2
through its sponsored University at Tripura issued
advertisement for fresh enrolments for award of CFA
Certification, CFA Institute, through its President and CEO,
B appellant No.1, in this appeal, issued the offending "Word of
Caution" wherein they: (1) deliberately and consciously did not
publish the full text of the interim injunction granted by the High
Court against respondent No.2 vide order dated 4th August
2006. They did not mention that order dated 4th August 2006
c was with a rider that the said order will not come into effect till
the end of the current academic session of CFA programme
run by the society and (2) the defamatory advertisement
portrays that the designation given by CFA Institute is the only
valid designati9n and the CFA certificate given by the society
0 is not valid. According to the complainant, all this was a
malicious act on the part of appellant No.1, with the intention
to harm their reputation in the estimation of the public in general
and its present and past students in particular and, therefore,
they are liable to be punished under Section 500 read with
E Section 34 of the IPC. For the sake of ready reference, the
relevant portion of the complaint is extracted below:
"That in the defamatory advertisement, the accused
persons have stated inter alia as follows-
. "The Chartered Financial Analyst (CFA) designation
from CFA Institute is the only globally recognized CFA
designation for financial professional. However, the Institute
of Chartered Financial Analysts of India (lcfai) offers an
educational programme specializing in finance, which they
term the 'CFA Programme' and awards a title called the
CFA".
That in the aforesaid advertisement, the American
Association has falsely claimed sole global recognition of
its 'CFA' designation even though the same is not
recognized by any Government arid/or Statutory authority
JEFFREY J. DIERMEIER AND ANR. v. STATE OF 147
W~ST BENGAL & ANR. [D.K. JAIN, J.)
either in USA or in any other country including India. The A
sole purpose of using the word 'Charter' by the accused
is purely with an intention to defraud and/or mislead the
public to convey statutory recognition. The said
advertisement does not disclose that unlike the "CFA'
degree granted by the SQciety, the so called "CFA Charter B
is not recognized by any University in India or outside and
the students who obtain such "Charter" cannot pursue
further studies based on the "CFA Charter" so awarded
by the CFA Institute. The tenor of the ab9ve statements in
the defamatory advertisement portrays an image that the c
designation, given by the"CFA Institute, is the only valid
designation and the 'CFA' degree given by the Society is
not a valid one. However, the situation is to the contrary
and the Society is a body recognized by the various
statutory aµthorities of India to be entitled to grant the "CFA" /D
degree. The s_ole purpose isto defame and scandalize
and.' thereby lbwer the image of the Society in the eyes of
the general public as also in the eyes of its present students
as alS'o potential students and thereby harm the image of '
the Socie-fY, so that the organization of the accused E
persons can benefit therefrom.
That in the defamatory advertisetnent dated 12.02.2007,
the accused persons have further stated as follows:-
"On 4th August, 2006, the Delhi High Court F
recognized that CFA Institute owns the exclusive rights to
the CFA trademarks and that continued use by ICFAI
causes irreparable harm. The court ordered an interim
injunction requiring lcfai to stop using the "Chartered
Financial Analyst" and "CFA" brands and to change its G
corporate and "CFA" titles names. Unfortunately, lcfai has
continued its unauthorized use of our trademarks by
running advertisements from an lcfai-sponsored
university".
The said statements are patently false and H
defamatory in nature. The accused persons deliberately,
wilfully and with malafide intention have not mentioned
in the advertisement that the order dated 4. 8. 2006
passed by the Hon'ble High Court of Delhi, granting
temporary injunction, has been made with a rider that the
said "order of injunction will not come into effect till the
end of the current academic session of the CFA program
run by the Society." It is well within the knowledge of the
accused that the current academic session of the CFA
programme of the Society has not come to an end and
as such it cannot be said that there has been
unauthorized use of the alleged trade marks of the CFA
Institute. Continuance of the current academic session
from a University, sponsored by the Society, cannot be said
to be in violation of the order of injunction passed by the
Hon'ble High Court of Delhi. Moreover, the defamatory
advertisement does not mention the fact (which is within
the knowledge of the accused) that against the above
interim order of injunction, an appeal is pending in the
Hon'ble High Court of Delhi. The tenor of the said
defamatory statement makes it clear that the accused,
with malafide intent to injure and harm the Society, had
misquoted the order passed by the Hon'ble High Court
of Delhi on 4. 8. 2006."
(Emphasis added)
22. Since the factum of publication of the "Word of Caution"
is not in dispute, the question for determination is whether the
afore-extracted allegations in the complaint constitute an
offence of "defamation" as defined in Section 499 of the IPC
G and would attract the penal consequences envisaged in Section
500 of the IPC?
23. "Defamation" is defined under Section 499 of the IPC.
It reads as under:
H "499. Defamation.-Whoever, by words either spoken or
,JEFFREY J. DIERMEIER AND ANR. v. STATE OF 149
WEST BENGAL & ANR. [D.K. JAIN, J.]
intended to be read, or by signs or by visible A
representations, makes or publishes any imputation
concerning any person intending to harm, or knowing or
having reason to believe that such imputation will harm, the
reputation of such person, is said, except in the cases
hereinafter excepted, to defame that person." B
24. To constitute "defamation" under Section 499 of the
IPC, there must be an imputation and such imputation must
have been made with intention of harming or knowing or having
reason to believe that it will harm the reputation of the person C
about whom it is made. In essence, the offence of defamation
is the harm caused to the reputation of a person. It would be
sufficient to show that the accused intended or knew or had
reason to believe that the imputation made by him would harm
the reputation of the complainant, irrespective of whether the
complainant actually suffered directly or indirectly from the D
imputation alleged.
25. However, as per Explanation 4 to the Section, no
imputation is said to harm a person's reputation, unless that
imputation directly or indirectly lowers the moral or intellectual E
character of that person, or lowers the character of that person
in respect of his caste or of his calling, or lowers the credit of
that person, in the estimation of others or causes it to be
believed that the body of that person is in a loathsome state,
or in a state generally considered as disgrac~ful. F
26. As stated above, the thrust of the argument of learned
counsel for the appellants was that since the "Word of Caution"
was issued in "good faith" for the benefit of those who were
planning to acquire CFA Certificate, and the same being for
the "public good", the case falls within the ambit of Tenth G
Exception to Section 499 of the IPC and, therefore, the
appellants cannot be held liable for defamation.
27. Tenth Exception to Section 499 of the IPC reads as
follows: H
A "Tenth Exception.-Caution intended for good of person
to whom conveyed or for public good.-lt is not defamation
to convey a caution, in good faith, to one person against
another, provided that such caution be intended for the
good of the person to whom it is conveyed, or of some
B person in whom that person is interested, or for the public
good."
28. It is plain that in order to bring a case within the scope
of the Tenth Exception, it must be proved that statement/
C publication was intended in "good faith" to convey a caution to
one person against another; that such caution was intended for
the good of the person to whom it was conveyed, or of such
person in whom that person was interested, or for the "public
good".
D 29. Before dealing with the question whether or not the
Tenth Exception would be attracted in the instant case, it would
be appropriate at this juncture, to deal with the objection raised
by learned senior counsel appearing for respondent No.2, that
no plea regarding applicability of the Tenth Exception having
E been urged before the High Court, the appellants are estopped
from raising such a plea at this stage. Ground IV in the petition
before the High Court was in the following terms:
"Ground IV - For that the publication dated February 12,
2007 was essential and in public interest and thus made
to protect the interest of the general public who might
otherwise have been induced to join the course offered by
the complainant/opposite party no.2 in the belief that it was
entitled to conduct the same. The language of the
publication is a fact and there is no question of there being
any defamation involved in the same."
30. It is clear from the above that in their defence, the
appellants had pressed into service the Tenth Exception to
Section 499 of the IPC. It was their case that the publication in
H question was in publi~interest as it was made to protect the
JEFFREY J. DIERMEIER AND ANR. v. STATE OF 151
WEST BENGAL & ANR. [D.K. JAIN, J.]
interests of those who were planning to join the CFA course A
announced by the University. In our view, the appellants are not
seeking to raise a new ground and, therefore, respondents'
objection on that account deserves to be rejected.
31. Now, reverting back to the main issue, as afore-stated, 8 the appellants issued the offending "Word of Caution" ostensibly
in order to warn those who were either planning to hire an
investment professional or to obtain a CFA designation that
there was an interim injunction against respondent No.2 from
using their afore-noted trademarks. It is claimed by the C
appellants that the said notice was aimed at that group of
people who were interested in acquiring a definitive standard
for professional competence or for those who wanted to hire
such professionals and not for the general public as such.
According to them, this is clear from the text of the "Word of
Caution", which says that "If you are planning to either hire an D
investment professional or obtain a designation, you need to
make informed decisions that benefit your future." However, it
cannot be denied that while the publication refers to the interim
order passed by the Delhi High Court, it omits to mention that
the said injunction will not come into effect till the end of current E ·
academic session of the CFA programme, which, according
to respondent No.2, was to conclude in May 2009, and that the
order would not mean expression of final opinion on the matter.
According to respondent No.2, the omission of last two
sentences of the interim order was a conscious and deliberate F
suppression to somehow project ICFAI in a bad light in order
to harm its reputation in the eyes of the professional community
and, therefore, the offending publication was neither in "good
faith" nor in "public interest".
32. It is trite that where to the charge of defamation under
Section 500 IPC, the accused invokes the aid of Tenth
Exception to Section 499 IPC, "good faith" and "public good"
have both to be established by him. The mere plea that the
accused believed that what he had stated was in "good faith"
152 SUPREME COURT REPORTS [2010) 7 S.C.R.
A is not sufficient to accept his defence and he must justify the
same by adducing evidence. However, he is not required to
discharge that burden by leading evidence to prove his case
beyond a reasonable doubt. It is well settled that the degree
and the character of proof which an accused is expected to
B furnish in support of his plea cannot be equated with a degree
of proof expected from the prosecution in a criminal trial. The
moment the accused succeeds in proving a preponderance of
probability, onus which lies on him in this behalf stands
discharged. Therefore, it is neither feasible nor possible to lay
C down a rigid test for deciding whether an accused person acted
in "good faith" and for "public good" under the said Exception.
The question has to be considered on the facts and
circumstances of each case, having regard to the nature of
imputation made; the circumstances on which it came to be
0 made and the status of the person who makes the imputation
as also the status of the person against whom imputation is
allegedly made. These and a host of other considerations
would be relevant and required to be considered for deciding
appellants' plea of "good faith" and "public interest".
Unfortunately, all these are questions of fact and matters for
E evidence.
33. In the instant case, the stage for recording of evidence
had not reached and, therefore, in the absence of any evidence
on record, we find it difficult to return a finding whether or not
F the appellants have satisfied the requirements of "good faith"
and "public good" so as to fall within the ambit of the Tenth
Exception to Section 499 IPC. Similarly, it will neither be
possible nor appropriate for this Court to comment on the
allegations levelled by respondent No.2 and record a final
G opinion whether these allegations do constitute defamation.
Reading the complaint as a whole, we find it difficult to hold that
a case for quashing of the complaint under Section 482 of the
Code has been made out. At this juncture, we say no more lest
it may cause prejudice to either of the parties.
JEFFREY J. DIERMEIER AND ANR. v. STATE OF 153
WEST BENGAL & ANR. [D.K. JAIN, J.]
34. For the afore-going reasons, we are of the opinion that A
the High Court was right in refusing to quash the complaint
under Section 500 IPC. The appeal, being devoid of any merit,
is dismissed accordingly. Nothing said by the High Court or by
us hereinabove shall be construed as expression of final
opinion on the merits of the complaint. B
B.B.B. Appeal dismissed.