Ajay Shah, an economist and member of the Reserve Bank of India, will face trial for writing what is claimed to a defamatory article against Multi Commodity Exchange of India (MCX) in February
2009.

Shah will have to appear before a metropolitan magistrate after the Bombay High Court refused to stay the summons issued to him. While rejecting his application earlier this month, Justice D G Karnik said: “There is no presumption that eminent and / or learned people would write articles only to educate the public at large and in good faith. Experience has shown otherwise.”

On the case, Justice Karnik said: “Shah was a member of the board of directors of NCDEX (National Commodities Ex-change of India), a rival exchange competing with MCEX, which has alleged the article was written with malafide interest.”

Shah allegedly wrote the article in May 2006.

After MCX issued a notice, he wrote a second allegedly defamatory article in June 2006, and a third article on February 4, in a leading financial newspaper. The court said it seemed as if “applicant (Shah) was campaigning for a rival exchange and condemning the complainant (MCX).”

The court also rejected Shah’s defence that the articles were written for “public good and in good faith.”

MCX had lodged a complaint alleging that the article was “slanderous and defamatory and full of innuendo.”