Delhi High Court Quashes Criminal Defamation Case Over Corporate Dispute Communication

The Delhi High Court quashed a criminal defamation complaint filed by Dalmia Cement against the founders and promoters of Calcom Cement India Limited, who were summoned by a trial court. 

Justice Neena Bansal Krishna held that communications made during civil or commercial disputes to protect a company’s financial interests fell within Exception 9 to Section 499 IPC.

The Court found that the impugned letter, sent in good faith to a lender concerning alleged mismanagement and fund siphoning, involved business partners and did not harm Dalmia Cement’s reputation.

The Court thereby set aside the complaint and the summoning order. 

[Ritesh Bawri & Ors v State & Anr.]