Delhi High Court has ordered Wipro Limited to pay ₹2 lakh in compensatory damages to a former employee for defamatory remarks made in his termination letter.
The ruling, delivered by Justice Purushaindra Kumar Kaurav, sets a precedent in Indian employment law by recognizing the reputational harm caused by stigmatic language in internal HR documents.
The plaintiff, Abhijit Mishra, served as a Principal Consultant at Wipro from March 14, 2018, to June 5, 2020.
His employment was terminated via a letter that cited “malicious conduct” and a “complete loss of trust” as reasons for dismissal.
Abhijit filed a civil defamation suit, seeking ₹2 crore in damages, a clean discharge letter, and the removal of defamatory content from the original termination communication.
Court’s Observations and Findings Against Wipro
The Court found that the termination letter contained unsubstantiated and stigmatic allegations, which contradicted the employee’s positive performance reviews and internal feedback.
Justice Purushaindra noted a “clear mismatch” between the remarks in the letter and the employee’s documented work history.
Key observations included:
- The remarks lacked factual basis and were demonstrably false.
- The language used had a deleterious impact on the employee’s future employability and professional dignity.
- Wipro failed to establish any valid legal defense for the defamatory statements.
Legal Doctrine: Compelled Self-Publication
In a progressive move, the Court invoked the doctrine of compelled self-publication, a principle rooted in American jurisprudence.
This doctrine holds that if an employee is forced to disclose defamatory termination reasons to prospective employers—due to internal policy or statutory requirements—the employer can be held liable for the foreseeable reputational damage.
Justice Purushaindra emphasized that defamation does not require direct public circulation; foreseeable harm from compelled disclosure is sufficient.
The Court rejected Wipro’s argument that the letter was confidential and not published to third parties.
Relief Granted by the Court
The Delhi High Court ordered:
- ₹2 lakh in general compensatory damages to redress emotional distress, reputational harm, and loss of professional credibility.
- Expungement of all defamatory remarks from the termination letter.
- Issuance of a fresh termination letter devoid of stigmatic content.
- Clarification that the termination decision remains unchanged, but the defamatory content must be removed.
Implications for Employers and HR Practices
This ruling sends a strong message to Indian corporates, especially in the IT and consulting sectors, where termination letters often include subjective and stigmatic language.
The judgment reinforces that:
- Employers must ensure fairness and substantiation in termination communications.
- Courts can challenge and penalize employers for making baseless allegations under civil defamation.
- Indian courts protect the right to dignity in employment under Article 21 of the Constitution.
Legal experts view this as a watershed moment in employment law, urging companies to re-evaluate HR protocols and adopt respectful and legally sound practices when handling employee exits.
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