Relief to PwC: Delhi HC dismisses Plea by Ex-CFO for Criminal Defamation [Read Order]

The Delhi High Court, in a major relief to PricewaterhouseCoopers (PwC) Private Ltd, has dismissed a petition filed under Section 482 of the Code of Criminal Procedure by its former Chief Finance Officer Sarvesh Mathur.

The plea was filed challenging the order dated October 7, 2020 passed by Additional Sessions Judge, Tis Hazari Courts that had set aside the summoning order issued by the Trial Court against PwC and its senior executives in connection with Mathur's defamation complaint. Mathur contended that he had found certain irregularities in the method of working of the Company and when he highlighted the same, he was sidelined in the organization and finally he was forced to resign on 31st December, 2011. It was further contended that the company issued a Letter of Termination on 27th February, 2012 in which, according to the petitioner, defamatory allegations were made.

In the order passed on Friday, Justice Asha Menon rejected the contentions made by Mathur and observed that his complaint does not satisfy the ingredients of defamation under the Indian Penal Code, and therefore, no criminal offense is made out against PwC and its officials in this regard.

Dismissing the petition, the Court said that “if the statement that the petitioner‟s employment was terminated in 2012 after it was found that he had retained and misused some of the company‟s proprietary information had adversely affected his prospects of employment, no such evidence has been placed on record. In any case, the fundamental requirement was to establish that these statements were made by the respondents No.2-5.”

“This court, therefore, finds no error or perversity in the impugned orders. In fact, the powers have been rightly exercised by the learned Sessions Court and to have allowed the order of summoning to continue would have resulted in grave injustice and abuse of process of court,” the Court said.

To Read the full text of the Order CLICK HERE

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