2009 (12) TMI 1009 - HC - Companies Law

Summary

Issues Involved:
The Plaintiff filed a suit against the Defendant based on a defamatory advertisement published by the Defendant in a newspaper. The issues involved include defamation, misleading statements, disparagement, and unfair trade practices.

Issue 4 - Defamatory Advertisement:
The Defendant's advertisement published in a newspaper was found to be defamatory and disparaging towards the Plaintiff's institute. The court referred to established legal principles regarding comparative advertising and held that while a trader can promote their goods, they cannot defame or disparage the goods of another. The Defendant's use of words like "useless" and "no real successes" in the advertisement was deemed defamatory towards the Plaintiff's services. The court ruled in favor of the Plaintiff on this issue.

Issue 1 - Decree of Injunction:
In light of the defamatory nature of the Defendant's advertisement, the Plaintiff was granted a decree of injunction. The Defendant was permanently restrained from using any words in its advertisement that disparage or defame the Plaintiff's products, goodwill, or reputation.

Issue 3 and 4 - Recovery of Damages:
Since the Defendant was restrained from using defamatory statements in their advertisement, the Plaintiff's claims for recovery of Rs. 1 crore in damages and interest were rejected for lack of proof. The court found that the Plaintiff did not establish the quantified damages due to the injunction granted.

The Plaintiff presented witnesses and evidence to support their case, and the court analyzed the content of the advertisement in question to determine its defamatory nature. Ultimately, the court granted a decree of injunction in favor of the Plaintiff, restrained the Defendant from using disparaging words, and rejected the claims for recovery of damages due to lack of proof. The suit was disposed of with costs awarded to the Plaintiff.