This can be treated as malicious prosecution also. Malicious prosecution is the malicious institution of unsuccessful criminal or bankruptcy or liquidation proceedings against another without reasonable or probable cause. This tort balances competing principles, namely freedom that every person should have in bringing criminals to justice and the need for restraining false accusations against innocent persons. Malicious prosecution is an abuse of the process of the court by wrongfully setting the law in motion on a criminal charge. The foundation lies in the triangular abuse of the court process of the court by wrongfully setting the law in motion and it is designed to encourage the perversion of the machinery of justice for a proper cause the tort of malicious position provides redress for those who are prosecuted without cause and with malice. In order to succeed the plaintiff must prove that there was a prosecution without reasonable and just cause, initiated by malice and the case was resolved in the plaintiff’s favor. It is necessary to prove that damage was suffered as a result of the prosecution.
It has to be proved that the plaintiff has suffered damages as a result of the prosecution complaint of. Even though the proceedings terminate in favour of the plaintiff, he may suffer damage as a result of the prosecution. The damages may not necessarily be pecuniary.
The damage to a man’s fame as where the matter whereof he is accused is scandalous
The damage must also be the reasonable and propable results of malicious prosecution and not too remote. In assessing damage the court to some extent would have to consider:
1) The nature of the offence the plaintiff was charged of
2) The inconvenience to which the plaintiff was charged to
3) Monetary loss and
4) The status and prosecution of the person prosecuted
“Every man is entitled to have his reputation preserved inviolate”. A man's reputation is his property. Depending upon perception of that man, reputation is more valuable to him than any other property. Reputation is the state of being held in high esteem and honor or the general estimation that the public has for a person. Reputation depends on opinion, and opinion is the main basis of communication of thoughts and Information amongst humans. In simpler words, reputation is nothing but enjoyment of good opinion on the part of others. So, the right to have reputation involves right to have reputation inviolate or intact.
Defamation is nothing but causing damage to reputation of another. Defamation is civil as well as criminal wrong. Likewise the codified criminal law on the subject, the civil law of defamation is not codified. The criminal law on the topic is contained in sectioned 499 to 502 of Indian Penal Code, 1860. However, defamation as a Civil Wrong is covered under Law of Torts. It is purely based on presidential developments, i.e. through decisions pronounced by Courts.
Thus, you may choose between two, i.e. whether to initiate action for malicious prosecution or defamation case.