My prima facie view is yes. But nature of Defamatory statements made in case papers need to be checked, examined.
There are four aspects:
1) One law of Defamation says that it will not be defamation what may be written in Court Orders or Proceedings.
But this does not protect what is written in case papers. If someone files a case and in that case, if defamatory baseless statements are made, they are not protected.
2) There is also a counter proposition. It is not defamation if you say something about a person to his superior authority who has powers to take actions against that person.
3) There is a third aspect also. If something objectionable is written in any case, every court can direct that such paragraphs be deleted from the case.
4) There is also a fourth aspect.
Now courts have started imposing fines on persons who may be misusing or abusing court processes.
One can make an application to concerned court to impose fine on person who has abused process of court, by giving details of such abuse. ( Frankly speaking, one of my own client is recently fined Rs,1 Lakh as the SC judges felt that he was abusing process of court by filing false cases)
Legal Profession is an Art.
Every lawyer’s advice can be different than every other lawyer’s advice. The decision as to which legal remedy should be pursued, depends on facts situation, willingness and affordability of parties etc.
Your family lawyer is best suited to give you advice.