On 21 October 1860, he published an article titled ‘Hinduo No Asli Dharam Ane Atyar Na Pakhandi Mato’ (The Primitive Religion of the Hindus and the Present Heterodox Opinions) in which he criticised Vaishnava Archaryas (Hindu religious leaders). In the article, he accused the religious leaders of sexual misconduct with the devotees and also called their scriptures immoral. After the publication of the article, a leader of Pushtimarg Vaishnavism named Jadunath Maharaj filed a lawsuit worth Rs 50,000 against Mulji and Nanabhai Rustomji Ranina in the Bombay Supreme Court on 14 May 1861. The case was commenced 25 January 1862 and the trial was held in the Supreme Court was before the Chief Justice Mathew Sausse and Joseph Arnould. After examining thirty-one witnesses for the plaintiff and thirty-three witnesses for the defendants, the judgement was given in favour of Karsandas Mulji on 22 April 1862. The chief Judge Joseph Arnould commended Mulji for his determination to fight against a powerful and corrupt leader and exposing the evil practices of the religious priests. He said,
“a public journalist is a public teacher: the true function of the press, that by virtue of which it has rightly grown to be one of the great powers of the modern world—is the function of teaching, elevating and enlightening those who fall within the range of its influence.”
The court had also asked the plaintiff to pay Rs. 11,500 to Karsandas, who had to bear a cost of Rs 13,000 during the trial.
Bhatia Conspiracy Case
After filing the lawsuit against Mulji, Jadunath Maharaj got feared if any of Mulji’s disciples testified in court. He pronounced among the whole Bhatia community of Bombay that anyone who testified against him would be excommunicated from the community. When Mulji came to know about it he filed Bhatia Conspiracy Case against nine Bhatia leaders. The case was ruled by Justice Joseph Arnould and he fined two leading Bhatias Rs 1,000 each and seven other defendants Rs 500 each. Whereas, Karsandas Mulji was awarded Rs 1,000 as case costs for winning the case.