Holding

A director of a private limited company is a "person aggrieved" under Section 199 CrPC and may file a defamation complaint; Section 258 CrPC does not apply to summons cases instituted on complaint.

Summary

The Madras Times published an article alleging that K.J. Hospital was involved in illegal kidney trafficking. The hospital's Director filed a criminal defamation complaint under Section 500 IPC, asserting that the imputation harmed the hospital and, by extension, himself. The trial magistrate discharged the publisher, holding that the Director had not proved his status under the Companies Act and that the publication was not per se defamatory. The High Court reversed, finding that a director of a private limited company is a "person aggrieved" under Section 199 CrPC and that Section 258 CrPC does not apply to cases instituted on complaint. The Supreme Court upheld the High Court, confirming the Director's locus standi and rejecting the publisher's reliance on Section 258, while also noting that non‑per‑se defamatory statements do not absolve liability.

Issues considered

Whether a director of a private limited company has locus standi to file a defamation complaint under Section 199 of the CrPC when the defamatory imputation is against the company.
Whether Section 258 of the CrPC, which allows a magistrate to stop proceedings, applies to summons cases instituted on a complaint.
Whether the absence of a per se defamatory imputation relieves the publisher from liability under Section 500 IPC.

Legislation cited

Code of Criminal Procedure, 1973s. 199, s. 258
Indian Penal Code, 1860s. 499, s. 500

Subjects

defamationlocus standiSection 199 CrPCSection 258 CrPCsummons caseper se defamationprivate limited companydirectorIndian Penal Code

Judgment

A JOHN THOMAS Jo-.

v.
DR. K. JAGADEESAN
-+

JULY 12, 2001

B [K.T. THOMAS AND R.P. SETHI, JJ.]

Criminal Procedure Code, 1973: :.._

S.199-Defamation-Locus Standi to file complaint- "Some persons
c aggrieved"-Scope of-Imputations published in a newspaper against a
hospital that it was engaged in trading human kidneys-Complaint by
Director of the hospital-Held, maintainable, as he would fall within the
purview of "some persons aggrieved"-Even if imputation was not made
against a person directly, but if he has reason to feel hurt by the same, he
has locus standi to file. a complaint.
D
Section 258-Power of Court to stop proceedings-Applicability of-
Held, has no application to cases instituted upon complaints.
i
Penal Code, 1860-Section 500-Defamation-Jmputations not per se
E defamat01y-Effect of-Held, that by itself does not discharge the publisher
since the complainant can establish on evidence that the said imputations
were defamat01y.

Words and Phrases:

F "Some persons aggrieved" meaning of in the context of Section 199 of
Code of Criminal Procedure, 1973.

A news item was published in a daily newspaper against a renowned
hospital alleging that it was illegally selling human kidneys. Respondent-
G Director of the said hospital filed a complaint for defamation under Section
500 I.P.C. Appellant-publisher of the said newspaper took a defence that the
allegations were against the hospital and not against the Director personally
and therefore, there was no locus standi for the respondent to file the complaint
x__ -
Trial Court upholding the said contention discharged the appellant. However,
on appeal High Court reversed the order of trial court and restored the
H 934
-----<-
JOHN THOMAS v. DR. K. JAGADEESAN 935
criminal proceeding holding that the respondent-Director had locus standi to A
~
file the complaint and that the trial court in summons cases instituted on
;,. complaints cannot discharge the accused after passing over the stage of
evidence. Hence the present appeal.

Dismissing the appeal, the Court
B
HELD : 1.1. The complainant, being Director of the hospital which is
a private limited company, would fall within the purview of "some persons
aggrieved': as envisaged in Section 199 (1) of the Code of Criminal Procedure,
,A 1973. [941-AJ

1.2. The collocation of the words "by some persons aggrieved in Section c
199(1) of the Code definitely indicates that th~omplainant need not
necessarily be the defamed person himself. If a comp ny or firm is described
· in a publication as engaging itself in nefarious activities its impact would
certainly fall on every Director of the company or every working partner of
the firm as the case may be and hence they can legitimately feel the pinch
D
of it. (940-G!°il]

2. After reading th£: imputations in the instant case there is no doubt
that they are prima facie libellous. The only effect of an imputation being per
se defamatory is that it would relieve the complainant of the burden to establish
that the publication of such imputations has lowered him in the estimation of E
the right thinking members of the public. However, even if the imputation is
not per se defamatory, that by itself would not go to the advantage of the
publisher, for the complaining person can establish on evidence that the
publication has in fact amounted to defamation even in spite of the apparent
deficiency. Appellant cannot contend that he is entitled to discharge on the
ground that the imputations in the extracted publications were not per se F
defamatory. (939-H; 940-A-B]

3. Section 25B of the Code has no application to cases instituted upon
complaints. Summons cases are generally of two categories. Those instituted
upon complaints and those instituted otherwise than upon complaints. Section
G
258 of the Code is intended to cover those cases belonging to one category
alone i.e. "summons cases instituted otherwise than upon complaints". The
section permits the court to acquit the accused prematurely only in those
~
summons cases instituted otherwise than on complaints wherein the evidence
of material witJJesses was recorded. Since the instant case was instituted on
complaint, the endeavour made by the accused to find help from section 258 H
936 SUPREME COURT REPORTS (2001] 3 S.C.R.

A of the Code is of no avail. (939-D-F)
4. In the instant case, appellant has neither pleaded before the trial
court nor before the High Court that there was no necessary averments in
the complaint regarding his role in the publication. Hence it is too late for
raising any such point, even apart from non-availability of that defence to the
B appellant on merits. (941-B-C]

K.M. Mathew v. State of Kera/a, [1992)1 SCC 217, distinguished.

CRIMINAL APPELLATE JURISDICTION : Criminal Appeal
No. 688 of 2001.
c
From the Judgment and Order dated 3.4.2001 of the Madras High Court
in Crl.R.P. No. 241/95.

Shivasubramanium and Ms. Lily Isabel Thomas for the Appellant.

D The Judgment of the Court was deiivered by
0

THOMAS, J. Leave granted.

A renowned hospital in the Metropolis of Madras (Chennai) has been -l
caricatured in a newspaper as the abattoir of human kidneys for trafficking
E purposes. When the Director of the Hospital complained of defamation, the
publisher of the newspaper sought shelter under the umbrage that the libel
is not against the Director personally, but against the hospital only and hence
he cannot feel aggrieved: The accused/publisher, who raised the objection
before the trial court, on being summoned by the court to appear before it,
succeeded in stalling the progress of the trial by clinging to the said contention
F which the trial magistrate has upheld. But the High Court of Madras
disapproved the .action of t})e magistrate and directed the trial to proceed.
Hence the accused has come up to this Court by filing the special leave
petition. But after hearing the learned senior counsel, who argued for the
appellant, we did not find the necessity to wait for the respondent - complainant
G to reply to those arguments as the appeal is only liable to be dismissed in •
limine.

The complainant (respondent in this) stated that he is running a hospital
as its Director under the name "K.J. Hospital". He claimed to be the Honorary
Overseer Ad'l!iser of Royal College of Physicians and Surgeons Qf Glasgow
H in UK. His grievance in the complaint is that a news item was published by
,__
I

'

JOHN THOMAS v. DR. K. JAGADEESAN [THOMAS, J.] 937
the "Madras Times" on 21.3 .1991 containing highly defamatory imputations A
against his hospital. The said newspaper is a daily published and circulated
A< by the appellant as its editor. The passage which, according to the complainant,
is defamatory to him has been quoted in the complaint. It is extracted below:

"It is stated that the hospital used to stealthily deprive of its patients
of one of their kidneys when they were admitted for minor operations. B
Women who were admitted for caesarian operation had one of their
kidneys removed without their knowledge. More than 120 women
have so far been affected by this trading in kidneys. It is reported that
the kidneys were later exported to Malaysia. The hospital has engaged
brokers to the lure in the needy poor to part with one of their kidneys
for a hefty sum. The nefarious activity has been going on for many
c
months now."

- So the complaint was filed by the respondent before the Court of
Metropolitan Magistrate for the offence under Section 500 of the IPC. The
magistrate, who took cognizance of the offence, issued process to the appellant. D
It seems, the appellant' is interested in taking up his defence and contentions
only in a piecemeal manner. At the first instance, he approached the High
Court for quashing the complaint on the ground that the magistrate ought to
have examined all the witnesses for the complainant before issuing the process
to the accused. The High Court dismissed his petition and repelled his
contention on that score as per an order passed in Crl.O.P. No. 2189/93. E
Thereafter the appellant moved the trial court for discharging him from the
proceedings for which he raised two other contentions. The first among them
is that the publication did not amount to defamation, second among them is
that "K.J. Hospital" is a private limited company whereas the complainant is
a private individual who had no locus standi to file the complaint.
F
On the first contention, the trial magistrate found that the imputations
are "derogatory remarks about the hospital". The learned magistrate upheld
the second contention for which he made the following observations:

"Even though the respondent himself admits in his complaint that Dr.
G
K. Jagadeesan is the Director of K.J. Hospital, mere admission by the
complainant cannot give him the status of Director of the hospital
.....
without the Article of Association duly registered in the Company
LJw Board under Indian Companies Act. Therefore, onus is on the
,J
respondent to pPove that he is the Director of K.J. HospitaJ, and he
has the locus standi to file this complaint. The respondent has not H
938 SUPREME COURT REPORTS (2001] 3 S.C.R.

A discharged the onus that he is the Director of K.J. Hospital and so
he has failed to prove that he has locus standi in filing the complaint
against the petitioner."

The trial magistrate, on the above reasoning, discharged the appellant
as per its order dated 10.2.1995. The complainant filed a revision before the
B High Court of Madras challenging the aforesaid order of discharge. A single
Judge of the High Court reversed the order and restored the criminal
proceedings to reach its logical culmination in accordance with law. It is the
said order of the High Court which the appellant/accused is challenging now.
The learned single Judge noticed that the trial court has already recorded
C evidence of two witnesses for the prosecution. He did not consider the points
found against by the trial court, instead he observed that the trial court in
a summons case cannot discharge the accused after passing over to the stage
of evidence. According to the learned single Judge, the accused should have
filed the application for discharge immediately after he ente~ed appearance
and if he ha!> not done so he could not do it after the court has moved to
D the stage of evidence talcing. What the learned single.Judge has stated on
that aspect reads as follows:

"If such an application is filed before the court immediately after
entering appearance before commencement of the trial as envisaged
E in Chapter XX Cr.P.C. the petition is maintainable. But now, the stage
has passed and the evidence of two witnesses on the side of
.prosecution was recorded and at this stage in the absence of any
provision for discharge of the accused the magistrate ought not to
have discharged tlie accused and he should have allowed the trial to
flow in accordance with the established procedure."
F
The appellant questioned the aforesaid view of the learned single Judge
on the strength of Section 258 of the Code of Criminal Procedure (for short
'the Code'). It must be pointed out that the offence under Section 500 of the
IPC is triable as a summons case in accordance with the provisions contained
G in Chapter XX of the Code. Sections 251 to 257 of that Chapter deal with the
steps to be adopted from the commencement upto culmination of the
proceedings in summons cases. One of the normal rules in summons cases
is that once trial started, it should reach its normal culmination. But Section
258 is included in that chapter in the form of an exception to the aforesaid
normal progress chart of the trial in summons cases. It is useful to. extract the
H section here:
JOHN THOMAS v. DR. K. JAGADEESAN [THOMAS, J.] 939
"258. Power to stop proceedings in certain cases.-In any sumffions A
case instituted otherwise than upon complaint, a Magistrate of the
first class or, with the previous sanction of the Chief Judicial Magistrate,
... any other Judicial Magistrate, may, for reasons to be recorded by him,
stop the proceedings at any stage without pronouncing any judgment
and where such stoppage of proceedings is made after the evidence
of the principal witness has been recorded, pronounce a judgment of B
acquittal, and in any other case, release the accused, and such release
shall have the effect of discharge."

Summons cases are generally of two categories. Those instituted upon
complaints and those instituted otherwise than upon complaints. The latter C
..
I
category would include cases based on police reports. Section 258 of the
Code is intended to cover those cases belonging to one category alone i.e.
"summons cases instituted otherwise than upon complaints". :'he segment
separated at the last part of the section by the words "and in any other case"
is only a sub-category or division consisting of "summons cases instituted
otherwise than upon complaints". That sub-category is not intended to cover D
all summons cases other than those instituted on police report. In fact,
Section 258 vivisects only "summons cases instituted otherwise than on
complaints" into two divisions. One division consists of cases in which no
evidence of material witness was recorded. The section permits the court to
acquit the accused prematurely only in those summons cases instituted E
otherwise than on complaints wherein the evidence of material witnesses was
recorded. But the power of court to discharge an accused at midway stage
is restricted to those cases instituted otherwise than on complaints wherein
no material witness was examined at all.

The upshot of the above is that Section 258 of the Code has no F
application to cases instituted upon complaints. The present is a case which
was instituted on complaint. Hence the endeavour made by the accused to
find help from Section 258 of the Code is of no :tvail.

Shri Siva Subramaniam, learned senior counsel for the appellant, G
contended that the imputations contained in the publication complained of
are not per se defamatory. After reading the imputations we have no doubt
that they are prima facie libellous. The only effect of an imputation being per
se defamatory is tha~ it would relieve the complainant of the burden to
establish that the. publication of such imputations has lowered him.in the
estimation of the right thinking members of the public. However, even if the H
940 SUPREME COURT REPORTS (200 I] 3 S.C.R.

A imputation is not per se defamatory, that by itself would not go to the
advantage of the publisher, for, the complaining person can establish on
evidence that the publication has in fact amounted to defamation even in
spite of the apparent deficiency. So the appellant cannot contend, at this
stage, that he is entitled to discharge on the ground that the imputations in
B the extracted publication were not per se defamatory.

The contention focused by the learned senior counsel is that the
respondent, who filed the complaint, has no locus standi to complain because
he is only a Director of K.J. Hospital about which the publication was made
and that the publication did not contain any libel against the complainant
C personally. It is not disputed ·that the complainant is the Director of K.J.
Hospital. Explanation 2 in Section 499 of the IPC reads thus:

"Explanation 2.-It may amount to defamation to make an imputation
concerning a company or an association or collection of persons as
such."
D
In view of the said Explanation, it cannot be disputed that a publication
containing defamatory imputations as against a company would escape from
the purview of the offence of defamation. If the defamation pertains to an
association of persons or a body corporate, who could be the complainant? -l
'
This can be answered by reference to Section 199 of the Code. The first sub-
E section of that section alone is relevant, in this context. It reads thus:

"J 99. Prosecution for defamation.-( 1) No court shall take cognizance
of an offence under Chapter XXI of the Indian Penal Code (45 of 1860)
except upon a complaint made by some person aggrieved by the
offence."
F
The collocation of the words "by some persons aggrieved" definitely
indicates that the complainant need not necessarily be the defamed person
himself. Whether the complainant has reason to feel hurt on account of the
publication is a matter to be determined by the court depending upon the
G facts of each case. If a company is described as engaging itself in nefarious
activities its impact would certainly fall on every Director ofthe company and
hence he can legitimately feel the pinch of it. Similarly, if a firm is described
in a publication as carrying on offensive trade, every working partner of the
firm can reasonably be expected to feel aggrieved by it. If K.J. Hospital is a
private limited c;ompany, it is too farfetched to rule out any one of its Directors,
H feeling aggrieved on account of pejoratives hurled at the company. Hence the
'
JOHN THOMAS 1·. DR. K. JAGADEESAN [THOMAS, J.] 941

appellant cannot justifiably contend that the Director of the K.J. Hospital A
would not fall within the wide purview of "some person aggrieved" as
envisaged in Section 199( 1) of the Code.

The learned senior counsel made a last attempt to save the appellant
from prosecution on the strength on the decision of this Court in KM.
Mathew v. State of Kera/a, (1992) 1 sec 217. In that case prosecution against B
Chief Editor was quashed for want of necessary averments in the complaint
regarding his role in the publication. That part of the decision rests entirely
on the facts of that case and it cannot be imported to this case. It is pertinent
to point out, in this context, that the appellant did not have any such point
either when he first moved the High Court for quashing the proceedings or C
when he moved the trial ~ourt for discharge. Hence it is too late in the day
for raising any such point, even apart from non-availability of that defence
to the appellant on merits.

We, therefore, dismiss this appeal.
D
S.V.K. Appeal dismissed.

\·