Mrs. Sujata V. Manohar, J. - (1.) At the material time the appellant was the Assistant Manager of the respondent-Karnataka State Small Industries Development Corporation (KSSIDC), Bangalore. He was also the President of the Karnataka State Small Industries Development Corporation Employees' Welfare Association, Bangalore.
(2.) On 3rd of June, 1977 the appellant addressed a letter to the Governor of Karnataka on behalf of the Karnataka State Small Industries Development Corporation Employees' Welfare Association in which he stated that the KSSIDC Corporation was likely to be wound up on account of bad administration, corruption and nepotism. He said that till 1977 the Corporation was running at a profit. However, since then it was sustaining continuous losses. In the letter it was alleged that several persons were being appointed in the Corporation who were not properly qualified at the instance of political leaders and ministers. The letter set out some instances of these kinds of appointments. There were also allegations in the letter about the nexus between contractors for various projects and the management of the Corporation. There were also some allegations about cement purchased from the Corporation being diverted and various such alleged malpractices in general terms. The letter requested the Governor to arrange to investigate the working conditions of the said Corporation. The letter had no connection with the service conditions of the employees or the objects of the Employees' Welfare Association.
(3.) On 31st of December 1977, the appellant issued a press statement which was published in a Kannada Daily called Samyuktha Karnataka of the same date. The appellant issued a statement welcoming the dismissal of Mr. S. C. Venkatesh, who was then the Chairman of the appellant-Corporation from the presidentship of the Bangalore City District Congress Committee. The appellant also expressed the hope that political leaders would prevail upon the Government and remove Mr. S. C. Venkatesh from the Presidentship of the respondent-Corporation thereby saving lakhs of rupees as Mr. S. C. Venkatesh was doing illegal activities.;