The Bombay High Court has restrained Quantum Securities Private Limited and Sanjay Dutt from issuing or publishing any defamatory content against NDTV. They are now required to personally appear before the court and show cause as to why action should not be taken against them for contempt of court. (
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Here are the details and supporting documents:
October 31, 2014COMMUNICATION TO STAKEHOLDERSUpdate on legal proceedings before the Hon'ble Bombay High Court against Mr. Sanjay Dutt ("SD") and Quantum Securities Private Limited ("QSL") and the Announcement titled "Attention Shareholders/ Investors of New Delhi Television Limited ("NDTV")" - published in Delhi edition of Economic Times on October 30, 2014 at Page No. 20 (the "Announcement"). We would like to bring to your notice certain material updates on the selective and false representations made by QSL and SD against our client NDTV. This clarification is required to be issued in light of the Advertisement issued by QSL which NDTV believes is in violation of certain court orders and injunctions operating against QSL and its directors. Accordingly, we are updating you of the background of proceedings and the update to the same.
SD and his associate, Mr. Sanjay Jain were closely associated with NDTV in the capacity of remunerated consultants, from September 2006 up till June 2008. SD was responsible for business and financial strategy, specifically for the Company's decision to set up structure of overseas subsidiaries for its foray into non-news areas. He left the organization in July 2008, when the last payment of remuneration was made to him.
Three years hence, SD started a campaign to smear the reputation of NDTV, writing to various third parties, including to business associates, bankers, auditors, etc. making baseless and frivolous allegations against NDTV in the garb of investor protection.
NDTV was therefore left with no choice but to initiate defamatory action against QSL, SD and the other directors of QSL before the Hon'ble Bombay High Court (the "Hon'ble Court").
The Hon'ble Court, vide its orders dated August 6, 2013, August 13, 2013 and October 17, 2013 (the "Injunction Orders") had granted an injunction against QSL, SD and the other Directors of QSL from directly of indirectly, in any manner further issuing any defamatory letters, notices, emails, etc., in connection with and / or pertaining to and / or relating to the Plaintiff, its senior officials and promoters.
The Injunction Orders continue to operate till date and are available on the website of the Hon'ble Court. A copy of the Injunction Orders are attached for your ease of reference as Annexure A.
What is even more shocking is that even after the above mentioned directions against QSL and SD, they continued to write to various third parties and business associates of NDTV, which according to NDTV, were in gross violation of the orders of the Hon'ble Court.
The Hon'ble Court vide its order dated February 26, 2014 ("Contempt Order") stated that a prima facie case had been made out for issue of contempt notice and directed that a contempt notice be issued inter alia upon the QSL and SD. Accordingly, the Contempt Notice dated March 7, 2014, (collectively with the Contempt Order the "Contempt Orders") was issued upon QSL and SD by the Hon'ble Court directing them to show cause as to why appropriate action shall not be taken against them under the provision of the Contempt of Court Act, 1971. Copy of the Contempt Order is attached for your reference as Annexure B.
However, despite such strict orders being issued against SD and QSL including prima facie findings by the Hon'ble Court of contempt of the Injunction Orders, they continued on their defamatory tirade against NDTV. They continued to write to third parties including to the bankers of NDTV. Further, in a gross and blatant breach of the orders of the Hon'ble Court, QSL published the Advertisement carried in the 'The Economic Times' on October 30, 2014 making further defamatory allegations against NDTV. NDTV immediately sent its response to the allegations contained in the said Advertisement to the stock exchanges which was uploaded on the website of NSE on October 30, 2014 as well. A copy of the response sent by NDTV to the stock exchanges is attached as Annexure C.
In light of this absolute disregard of the Contempt Orders by SD and QSL, NDTV was constrained to once again move the Hon'ble Court to bring the above violations to its notice and seek appropriate reliefs. The Hon'ble Court after appraising the latest acts of defamation and contempt by QSL was pleased to direct that a further notice of contempt be issued upon \QSL and its directors in light of the recent acts, which were prima facie in violation of the Contempt Orders. The Hon'ble Court further directed that the respondents (i.e. QSL and its directors including SD) are restrained from issuing or publishing any defamatory content against NDTV. The Respondents are now required to personally appear before the Hon'ble Court and show cause as to why action should not be taken against them.
The defamation suit and the contempt proceedings are both presently sub-judice. However, QSL/ SD seem to have chosen to ignore such directions in complete disregard of the Hon'ble Court which would be in contempt of court.
SD had also approached the Hon'ble Delhi High Court vide a writ petition against the regulatory authorities (MIB, MCA and Ministry of Finance) seeking inter-alia a writ of mandamus asking them to take action against the Company. However, after receiving objections from the respondents therein, he ceased to pursue his case and withdrew the petition. A copy order dated July 16, 2014 passed by the Hon'ble Delhi High Court recording the withdrawal is attached as Annexure D.
NDTV also found out that SEBI had initiated proceedings against QSL, SD and his relative for violations of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003. QSL, SD and his relative paid an aggregate amount of Rs. 53.41 Lacs to SEBI to settle and close the investigations and proceedings of market manipulation against them. Copies of the abovementioned SEBI Orders are attached as Annexure E.
NDTV also discovered that Quantum Securities Private Limited owned by SD and his family members had acquired huge stocks of NDTV, through companies and parties connected to them, during his paid association with NDTV (2007-08), while he was privy to considerable amount of unpublished stock price sensitive information.
We would request you to note that SD and QSL's actions of publishing and circulating defamatory articles are not legally permissible and are in complete disregard of Court Orders. Accordingly, we request you to be cautious and appropriately deal with any communications already received/ received in the future from QSL/ SD against NDTV in a manner that your good office does not inadvertently assist QSL/ SD in violating the orders operating against them. We would request you not to allow SD or QSL to abuse and misguide your good offices in flouting the Court Orders further resulting in obstruction of justice and contempt of the Hon'ble Court. Also, please inform NDTV if you are in receipt of any communication from QSL (or its directors including SD) making defamatory allegations against NDTV, so that we may take necessary action and bring the same to the notice of the Hon'ble Court.
Read More Details Annexure A
Annexure B
Annexure C
Annexure D
Annexure E