Delhi High Court - Orders
Mjs. Continental Software Solutions ... vs Luxxis Infotech Private Limited & Ors on 6 September, 2022
Author: Prathiba M. Singh
Bench: Prathiba M. Singh
$~4
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ CS(COMM) 91/2021 & I.As. 2708/2021, 2711/2021, 14487/2022
MJS. CONTINENTAL SOFTWARE SOLUTIONS
PRIVATE ..... Plaintiff
Through: Mr. Vivek Mishra, Advocate.
(M:9415792227)
versus
LUXXIS INFOTECH PRIVATE LIMITED & ORS. ..... Defendants
Through: Mr. Alok Kumar Tripathi, Advocate.
(M:8130357735)
CORAM:
JUSTICE PRATHIBA M. SINGH
ORDER
% 06.09.2022
1. This hearing has been done through hybrid mode.
2. The Plaintiff - M/S Continental Software Solutions Private Ltd. that was incorporated in 1985 is engaged in the business of providing online solutions under the trade name "MyWorldOfExpo", for events and exhibition organisers including online exhibitor manuals, awards, conference modules, mobile websites, interactive floor plans, event planner, etc. claiming to have collated and compiled information specific to the industry over a period of more than 2 decades. It operates in USA, UK and India through its licensees. In India, particularly, the license has been granted to Continental Chemicals Ltd. and as per the Plaintiff the only other company that develops software for the exhibition industry is Hindavi Technologies.
3. The Defendant No. 1 - M/s. Luxxis Infotech Private Limited is a company incorporated by Defendant Nos. 2 to 5, being its promoters and shareholders in equal ratio, i.e., 25% each, having its registered office at New Delhi. Defendant Nos. 2 to 5 were ex-employees of the Plaintiff, wherein, Defendant No. 2 - Mr. Pratik Babu was the Chief Technology Officer, Signature Not Verified Digitally Signed By:DEVANSHU JOSHI Signing Date:07.09.2022 16:11:43 Defendant No. 3 - Mr. Mukesh Tiwari was the Key Accounts Manager, Defendant No. 4 - Mr. Ashish Sahu was the Project Head and Defendant No. 5 - Mr. Ravi Gupta was a Softwear Engineer.
4. In the present suit, the Plaintiff's case was that the Defendant Nos. 2 to 5 who were previously employed with the Plaintiff in breach of their contractual obligations had appropriated various confidential information of the Plaintiff, like, software modules, source codes, website etc. A forensic report ascertaining the infringement was also referred to by the Plaintiff which revealed that slavish copying and imitation was conducted to the extent that typographical errors were also replicated/copied. Thus, the present suit, was filed by the Plaintiff against Defendants in which vide order dated 22nd February, 2021 an ex parte ad interim injunction order was granted and two Local Commissioners were appointed to to collect and extract relevant information like retrieving copies of the illegal infringing software and also copies of various information from the Defendants' servers, machines and systems. Post the injunction being granted, the parties have negotiated for an amicable resolution.
5. Ld. Counsel for the parties submit that the parties have settled their disputes in terms of the settlement agreement dated 31st August, 2022. An application under Order XXIII Rule 3 CPC seeking a decree/order on the basis of the settlement has been filed.
6. As per the settlement agreement placed on record, the Defendant Nos. 2 to 5 have transferred their fully paid up shareholding of 10,000 shares to Mr. Naresh Kumar Chibba and Mr. Aditya Vikram Chibba, representatives of Defendant No. 1. However, the management of Defendant No. 1 shall remain the same until further instructions from the Plaintiff and no Signature Not Verified Digitally Signed By:DEVANSHU JOSHI Signing Date:07.09.2022 16:11:43 business/transactions are to be conducted without the written approval of the Plaintiff. Further, all rights, titles or interests of the Defendants in Defendant No. 1 are transferred to the Plaintiff at nil consideration.
7. All the settlement terms agreed upon by the parties are contained in paragraph M of the agreement. The agreement is duly signed by all the parties namely Defendant No.2, Defendant No.3, Defendant No.4 and Defendant No.5 and the authorized signatory of Defendant No. 1. On behalf of the Plaintiff the agreement was signed by Mr. Naresh Kumar Chibba.
8. The Court is satisfied that the terms of the settlement are legal and there is no impediment in recording the settlement. All parties acting for or on their behalf shall be bound by the terms of the settlement agreement.
9. The suit shall stand decreed in terms of the settlement agreement dated 31st August, 2022.
10. Since the matter has been decreed, access to the case status of this suit be opened by the Registry.
11. Decree sheet to be drawn.
12. All the pending applications are disposed of.
PRATHIBA M. SINGH, J SEPTEMBER 6, 2022 dj/sr Signature Not Verified Digitally Signed By:DEVANSHU JOSHI Signing Date:07.09.2022 16:11:43