The Supreme Court on Thursday upheld the right of homebuyers to peacefully protest against real estate developers, emphasizing that such expression falls within the ambit of consumer rights.

A bench comprising Justice JB Pardiwala and Justice KV Viswanathan made the observation while setting aside a defamation case filed by M/s A Surti Developers Private Limited against a group of flat purchasers in Mumbai. The homebuyers had approached the Court challenging the issuance of summons in the defamation proceedings.

“Homeowners, as consumers, enjoy the right to peaceful protest—just as a builder enjoys the right to free commercial speech,” the Court observed.

The case stemmed from allegations that the homebuyers had displayed banners in both Hindi and English containing critical statements against the builder. The developer claimed the statements were false and defamatory, prompting a defamation complaint in 2016. A Metropolitan Magistrate had taken cognizance of the complaint and issued process, which was later upheld by the Sessions Court and the Bombay High Court.

However, the Supreme Court found no merit in the complaint. It noted that the language used in the banners was neither foul nor intemperate, and that the messages were framed carefully to convey the grievances of the homeowners.

“Language is a medium of communication, and the posters merely highlighted the issues faced by the buyers. The choice of words was deliberate and respectful,” the Court noted.

The Bench also reiterated that even at the stage of a petition under Section 482 of the Criminal Procedure Code (CrPC) seeking quashing of a defamation case, the High Court is empowered to assess whether any of the exceptions to Section 499 of the Indian Penal Code (IPC)—which defines defamation—are applicable.

“We have held that the Court can examine if an exception under Section 499 IPC is attracted, even at the preliminary stage under Section 482 CrPC,” the judges said.

Emphasizing that the protest in question was peaceful and within constitutional limits, the Court held that the criminal proceedings against the homeowners amounted to an abuse of legal process.

“This protest was conducted in a peaceful manner and did not cross the ‘Laxman Rekha.’ Therefore, continuation of the criminal case would be unjustified. The right to protest peacefully is a legitimate consumer right, and accordingly, the complaint against the homeowners is quashed,” the Court concluded.