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The Legal Affair

Let's talk Law

The Legal Affair

Let's talk Law

Delhi Court Quashes Ex-Parte Gag Order Against Alleged Defamatory Publications Targeting Corporate Group

Delhi Court Quashes Ex-Parte Gag Order Against Alleged Defamatory Publications Targeting Corporate Group

Introduction:

In an important development for the protection of press freedom and the balance between reputation and free speech, the Rohini District Court in Delhi set aside an ex-parte gag order earlier issued by a civil court that had restrained alleged defamatory publications against the Adani Group. The matter came up in an appeal filed by four journalists—Ravi Nair, Abir Dasgupta, Ayaskant Das, and Ayush Joshi—challenging the September 6 order passed by the trial court. District Judge Ashish Aggarwal heard the appeal and ruled that the civil judge had erred in restraining the publications without granting an opportunity of hearing to the journalists, especially since the articles and posts in question had been in the public domain for several months prior to the order. The ruling assumes significance against the backdrop of broader debates on judicial injunctions, corporate reputation, and the scope of press freedoms in a democratic society. Advocate Vrinda Grover appeared for the journalists, while senior counsel Vijay Aggarwal represented the corporate entity. The case also runs parallel to a plea by journalist Paranjoy Guha Thakurta before another bench of the same court challenging similar gag orders. The judgment highlights the need for courts to balance reputational concerns of private entities with constitutional guarantees of free speech and the right to know.

Arguments of the Journalists:

On behalf of the journalists, Advocate Vrinda Grover advanced strong submissions emphasizing that the order passed by the civil court was a sweeping, blanket injunction that violated the very foundation of free speech and press rights. She argued that the majority of the articles and posts questioned by the corporate entity had already been published and available in the public domain since June 2024, and thus there was no urgency or emergent situation justifying an extraordinary ex-parte injunction months later. She questioned the reasoning of the civil court, pointing out that it provided no justification for branding the publications as “defamatory” or “unverified.” In fact, Grover highlighted that many of the articles were based on official sources, such as statements by the Kenyan government or judgments of Swiss courts, and asked rhetorically whether courts could dismiss such authoritative sources as unverified. She further submitted that the trial court order had the effect of a “john doe” injunction, applying broadly in rem to unspecified future content and effectively imposing a blanket prohibition on questioning or investigating the activities of the corporate entity. Such a direction, she argued, was wholly contrary to law and violative of the freedom of the press. She pressed that courts must recognize that journalists are agents of the press entrusted with advancing the constitutional right to free speech and expression under Article 19(1)(a). Grover criticized the trial court for failing to consider whether the corporate entity had discharged the burden of establishing falsity, malice, or imminent irreparable harm before obtaining such drastic relief. She also argued that the civil court failed to issue even a short notice or grant two days’ time for the journalists to present their side, despite the fact that the publications had already been in circulation for months. She asked pointedly, “Why the rush? Why no notice could have been given to us for two days?” Grover stressed that courts cannot permit corporations to silence dissenting voices and investigative reporting through blanket “take-down” orders. She described the civil court’s decision as having led to a “tsunami” of takedowns of videos, articles, and posts, which chilled public debate and undermined the very principles of democratic accountability. She further questioned the locus standi of the corporate entity to sue on behalf of its founder, Gautam Adani, who had not approached the court personally. According to her, the absence of the individual aggrieved party further weakened the legal basis of the case.

Arguments of the Corporate Group:

On the other hand, Advocate Vijay Aggarwal appearing for the corporate entity defended the civil court’s ex-parte order as justified and necessary in light of what he described as a malicious campaign against the company. He argued that the publications and social media activity formed part of a coordinated strategy to target the corporate group, as evidenced by the timing of podcasts, tweets, and posts being circulated and liked even in August 2024. He insisted that each retweet, repost, or like amounted to republication, thereby causing continuing harm to the company’s reputation. Aggarwal maintained that journalists had the remedy under Order 39 Rule 4 of the Code of Civil Procedure (CPC) to approach the civil court to vacate or vary the injunction, rather than directly seeking relief in appeal. He emphasized that the law expressly recognizes the possibility of ex-parte interim injunctions in appropriate cases, particularly where delay in granting relief could render any future judgment ineffective. He further argued that detailed judicial reasoning is not necessary at the interlocutory stage, and that the civil judge was within his rights to rely on the plaint and supporting material provided by the plaintiff to conclude that the case warranted urgent protection of reputation. He also pointed out that many of the articles relied upon by the journalists were rooted in the controversial Hindenburg report, which had been subject to scrutiny, and that the Supreme Court had previously observed no fault of the Adani Group in that context. He urged that given the scale of the attack and its potential financial and reputational consequences, a John Doe order was justified. Aggarwal further alleged that the journalists were themselves under probe by the National Investigation Agency for alleged receipt of foreign funding, particularly from China, and thus their credibility was suspect. He stressed that the publications were not neutral reporting but part of a sustained agenda against the company, and that corporate entities too are entitled to protection of reputation under the law.

Court’s Judgment:

District Judge Ashish Aggarwal carefully considered the submissions and set aside the impugned ex-parte injunction order. The Court noted that the central flaw of the trial court’s decision was its failure to grant the journalists even a minimal opportunity of hearing before ordering takedowns of publications that had already been in circulation for months. The Judge held that when articles and posts spanning a substantial period are questioned through a civil suit, the court must ordinarily afford the defendants a chance to respond before making any prima facie findings of defamation. He observed that the trial court, by ordering removal of the content without hearing the defendants, had effectively declared the articles defamatory at a preliminary stage, which was unsustainable. The Court highlighted the irreparable consequences of such orders, reasoning that if a senior civil judge at a later stage were to find the articles non-defamatory after considering the defendants’ defense, it would not be feasible to restore articles already taken down from the internet. This potential irreversibility strengthened the case against granting ex-parte blanket injunctions in such situations. The Judge concluded that the civil judge ought to have determined the plaintiff’s prayers after giving due hearing to the defendants. Accordingly, the appeal was allowed, and the impugned order was set aside, without making any conclusive findings on the merits of the defamation allegations. The judgment thus reasserted the principle that courts must exercise caution before curtailing press freedom through prior restraints and that ex-parte injunctions in matters involving speech must be granted sparingly and only in cases of true urgency. The ruling, while leaving the merits of the defamation claims open for trial, reinforced the fundamental need to balance corporate reputation with the constitutional values of free speech, press freedom, and democratic accountability.