Official-confidence privilege protects statutory investigation reports where early disclosure may prejudice public interest.

Section 124 privilege was upheld for a government-appointed inspector's report prepared under section 239 of the Companies Act, 1956, because the report was made in official confidence and disclosure before governmental consideration could prejudice public interest. The report was described as preliminary, potentially incomplete without the company's explanation, and capable of influencing further inquiry if disclosed too early. On that basis, the court refused to have the report summoned or produced.

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Issues: Whether privilege under section 124 of the Indian Evidence Act, 1872 could be claimed in respect of the inspector's report made under section 239 of the Companies Act, 1956, and whether the report could be summoned and produced.

Analysis: Section 124 protects communications made in official confidence where the public officer considers that disclosure would injure public interest. The report in question was an inspector's report prepared under section 239 of the Companies Act, 1956 in the course of an investigation into the affairs of a company. Such a report may contain wide-ranging and preliminary views, may not reflect the company's explanation, and may be acted upon by the Government only after consideration. Premature disclosure could impair further inquiry, deter free and frank reporting by inspectors, and adversely affect public interest. On these facts, the claim of privilege was held to be substantiated.

Conclusion: The privilege claim under section 124 was upheld and the inspector's report was refused to be summoned or produced.

Ratio Decidendi: A report of a government-appointed inspector prepared in the course of a statutory investigation may be withheld under section 124 of the Indian Evidence Act, 1872 when its disclosure before governmental consideration would prejudice public interest.

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