In a significant ruling, the Supreme Court on Thursday upheld the right of homebuyers to peacefully protest against real estate developers, emphasizing that consumers have every right to voice their grievances in a lawful and respectful manner.
The decision came from a Bench comprising Justice JB Pardiwala and Justice KV Viswanathan, which quashed a defamation case filed by Mumbai-based real estate developer M/s A Surti Developers Private Limited against a group of flat purchasers.
Background of the Case
The dispute began when a group of homebuyers displayed banners and boards outside the developer’s premises in both Hindi and English, alleging delays and other grievances related to their housing project. The builder filed a defamation complaint, claiming that the statements were false and intended to tarnish its reputation.
In 2016, a Metropolitan Magistrate in Mumbai took cognizance of the complaint and issued summons. The Sessions Court and later the Bombay High Court refused to quash the complaint, prompting the homeowners to approach the Supreme Court.
Court’s Verdict
In a strong endorsement of consumer rights, the apex court said that no offensive or intemperate language was used in the banners, and the protest was conducted in a peaceful and lawful manner.
“Language is a vehicle of communication, and the posters only highlighted the grievance they were facing. The language was carefully chosen by the home owners,” the Court observed.
The Bench noted that the High Court, while hearing petitions under Section 482 of the Criminal Procedure Code (CrPC), can consider whether exceptions to the offence of defamation under Section 499 of the Indian Penal Code apply, including acts done in the public interest or for expressing grievances.
“We have discussed the right to protest peacefully and this protest was held peacefully. The ‘Laxman Rekha’ was not crossed,” the judges remarked.
Peaceful Protest vs. Defamation
The Court emphasized that just as builders enjoy the right to free commercial speech, consumers, in this case, the homeowners, also have the right to peaceful protest.
“Homeowners, as consumers, enjoy the right to peaceful protest. This is a fundamental part of their rights — just as the builder has the right to commercial speech,” the judgment read.
The Court concluded that the criminal proceedings initiated against the homeowners amounted to an abuse of the legal process and ordered the defamation complaint to be quashed.
Significance Of The Judgment
This ruling is a major win for consumer rights in India, particularly for homebuyers who often face delays and issues in real estate projects. The Supreme Court’s verdict reinforces that consumers can raise their voices through peaceful and non-abusive means, without the fear of being dragged into defamation cases.
The judgment draws a clear line: while protests must remain respectful and within legal bounds, simply highlighting grievances does not amount to defamation.
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