Banks Can’t Be Summoned As Accused For Defamation; Declaring Company ‘Fraud’ Not Defamatory: Delhi High Court

The Delhi High Court held that a bank, in good-faith classifying a company account as “fraud”, cannot be treated as an accused for defamation because it lacks the required mens rea (state of mind) for the offence. The Court clarified that banks acting in their regulatory or financial capacity are performing statutory duties and the nature of the act does not ordinarily give rise to defamation liability. The decision protects financial institutions from defamation suits in contexts of fraud classification when acting within the scope of their regulatory role.