Monthly Archives: July 2020

Criminal Offence of – Defamation

The criminal offence of defamation under Section 499 Indian Penal Code is committed when a person makes a defamatory imputation which, as explained in Mohd. Abdulla Khan v. Prakash K., (2018) 1 SCC 615, is as under:

“To constitute an offence of defamation it requires a person to make some imputation concerning other person;

  • Such imputation must be made either
  • With intention, or
  • Knowledge, or
  • Having a reason to believe

that such an imputation will the reputation of the person against whom the imputation is made.

  • Imputation could be, by
  • Words, either spoken or written, or
  • By making signs, or
  • Visible representations
  • Imputation could be either made or published.

The difference between making of an imputation and publishing the same is:

If ‘X’ tells ‘Y’ that ‘Y’ is a criminal–‘X’ makes an imputation. If ‘X’ tells ‘Z’ that ‘Y’ is a criminal—‘X’ publishes the imputation.

The essence of publication in the context of Section 499 is the communication of defamatory imputation to persons other than the persons against whom the imputation is made. A publication, on the other hand, is made when the imputation is communicated to persons other than the persons about whom the defamatory imputation is conveyed. A person, who makes the defamatory imputation, could also publish the imputation and thus could be the maker and the publisher of a defamatory imputation. On the other hand, a person may be liable though he may not have made the statement but he publishes it. Google India Private Ltd. v. Visaka Industries, (2020) 4 SCC 162.

Leave a comment

Filed under Defamation

Penalty for Frauds – By an Officer of the Company

Under Section 241(2) of the Companies Act, 2013, the Central Government, if it is of the opinion that the affairs of the Company are being conducted in a manner prejudicial to public interest, may apply itself to the Tribunal for orders under the said Chapter, which is headed “prevention of Oppression and Mismanagement”. Apart from the vast powers that are given to the Tribunal under Section 242, powers under Sections 337 and 339 are also given in aid of this power, which will apply mutatis mutandis.         Section 337 of the Companies Act refers to penalty for frauds by an officer of the Company in which mismanagement has taken place. Likewise, Section 339 refers to any business of the company which has been carried on with intent to defraud creditors of that company. Obviously, the persons referred to in Section 339(1) as persons who are other than the parties “to the carrying on of the business in the manner aforesaid” which again refers to the business of the company which is being mismanaged and not to the business of another company or other persons. Usha Ananthasubramanian v. Union of India, (2020) 4 SCC 122.

Leave a comment

Filed under Companies Act, 2013, Penalty for Fraud