Bombay HC Rejects Lilavati Trust's Plea To Restrain HDFC Bank From Making Statements; Imposes ₹5 Lakh Cost

Mumbai, June 9: The Bombay High Court on Tuesday dismissed an interim application filed by the trust that runs Lilavati Hospital, which had sought to restrain HDFC Bank, its Managing Director and CEO Sashidhar Jagdishan, and other officials from making allegedly defamatory statements against the trust and its members.

Background of the defamation suit

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The application was moved by the Lilavati Kirtilal Mehta Medical Trust in a Rs 1,000-crore defamation suit against the bank. The trust alleged that HDFC Bank and its senior executives had made defamatory statements through media interactions and social media posts, causing reputational harm.

However, Justice Somasekhar Sundaresan rejected the plea, holding that the statements complained of were not defamatory as they were factually accurate.

Cost imposed on the trust

The court also imposed costs of Rs 5 lakh on the trust, payable to HDFC Bank. The judge observed that the application was part of a "long chain of proceedings" initiated by the trust to obstruct recovery proceedings undertaken by the bank.

Factual accuracy of bank statements

The court noted that HDFC Bank's statements that the trust and its trustee owed substantial sums to the bank were factually correct and therefore constituted truthful speech. “The statements in question were necessitated only because of the sustained media campaign of articles against HDFC Bank and its senior executives,” the court observed.

Relief sought by the trust

The Lilavati Kirtilal Mehta Medical Trust, which manages Lilavati Hospital in Bandra, had sought an injunction restraining the bank and its officials from making any future statements that could allegedly damage the trust's reputation. It had also sought damages of Rs 1,000 crore.

Bank’s defence

Opposing the plea, HDFC Bank argued that the trust and its trustees had borrowed money from the bank and had defaulted on repayment, leading to recovery and enforcement proceedings.

Agreeing with the bank, the High Court held that statements regarding the outstanding dues, defaults, and recovery actions were factually accurate and could not be termed defamatory.

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Court remarks on trustee allegations

Justice Sundaresan also described as “vexatious” the allegations made by the trustees against the bank and its officials, including claims that they were responsible for the death of the trust's founder, Kishor Mehta.

Finding no case for interim relief, the court dismissed the application and directed the trust to pay costs to the bank.

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