New Delhi: The Supreme Court on Saturday refused to set aside the Karnataka High Court's order that had stayed a trial court order mandating former PM HD Deve Gowda to pay Rs 2 crore for his alleged defamatory remarks against Nandi infrastructure, which had constructed the Bengaluru Mysuru Infrastructure corridor.
The top court also allowed Nandi infrastructure to approach the HC in case Deve Gowda makes any further statements while the matter is pending. "Since the High Court has passed discretionary order staying the execution of the decree passed by the trial court imposing compensation in a suit for defamation pending the first appeal, we are not inclined to entertain a petition under Article 136 of the constitution.
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The High court has also directed that the respondent(HD Deve Gowda) shall not make any statement, which is defamatory, pending disposal of the first appeal. If there is any breach of the direction weather respondent, the petitioner would be at liberty to move the High Court for vacating the interim order," ordered the court.
During the hearing, the bench comprising of Justice DY Chandrachud and Justice Hima Kohli also observed that derogatory statements by a public figure affects the reputation of a company and its share prices despite the project being good.
The High Court had stayed the trial court's order contending that prima facie no evidence shows that Nandi suffered losses due to statements. The trial court had ordered Deve Gowda to pay the 2 crore amount contending that defamatory statements against a project will result in its delayed implementation.