Delhi High Court - Orders
Ht Process Controls Private Limited vs Ankur Gupta & Ors on 15 July, 2024
$~42
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ CS(COMM) 560/2024
HT PROCESS CONTROLS PRIVATE LIMITED .....Plaintiff
Through: Mr. Adarsh Ramanujan, Mr. Shivam
Kaushik, Mr. Yogesh Khullar and
Mr. Zafeer Ahmed, Advocates
versus
ANKUR GUPTA & ORS. .....Defendants
Through: None.
CORAM:
HON'BLE MR. JUSTICE SAURABH BANERJEE
ORDER
% 15.07.2024 I.A. 33277/2024 (u/O VI Rule 17 r/w Section 151 CPC seeking amendment of plaint and application filed u/O XXXIX Rules 1 & 2 CPC)
1. For the reasons stated in the present application as also the fact that notice is yet to be issued in the present suit, the present application is allowed.
2. Accordingly, the amended plaint alongwith the amended application under Order XXXIX Rule 1 & 2 of the CPC are taken on record.
3. Accordingly, the present application is allowed and disposed of. I.A. 32836/2024 (u/S 149 read with Section 151 of the CPC)
4. The plaintiff seeks exemption from filing the deficient court fee.
5. Learned counsel appearing for the plaintiff submits that the deficient court fee has been filed vide Diary No.1726235/2024. Therefore, the present application has become infructuous.
6. In view of the statement of the learned counsel for the plaintiff, the CS(COMM) 560/2024 Page 1 of 15 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 09/08/2024 at 20:54:06 present application is disposed of.
I.A. 32835/2024 (u/S 12A of the Commercial Courts Act, 2015)
7. The plaintiff seeks exemption from instituting pre-litigation mediation.
8. Considering the averments made in the application and as the plaintiff is seeking an urgent ad-interim relief along with the appointment of Local Commissioner(s) and in view of the orders passed in Yamini Manohar v. T.K.D. Krithi 2024 (5) SCC 815 and Chandra Kishore Chaurasia vs. R. A. Perfumery Works Private Limited 2022:DHC:4454- DB, the plaintiff is exempted from instituting pre-litigation mediation.
9. Accordingly, the present application is allowed and disposed of. I.A. 32832/2024 (Exemption)
10. Exemption allowed, subject to all just exceptions.
11. The application stands disposed of.
I.A. 32838/2024 (Exemption from serving suit paperbook in advance to defendant nos. 1 to 4)
12. The plaintiff seeks exemption from advance service on the defendant nos. 1 to 4.
13. Learned counsel for the plaintiff submits that considering the position involved, particularly since appointment of Local Commissioner(s) for execution of search and seizure at the premises of defendant nos.1 to 4 is being sought, there is a likelihood that the apprehensions of the plaintiff will become a reality in case advance service is affected and therefore, an exemption from effecting advance service is necessary.
14. Therefore, for the reasons stated in the application as also taking into CS(COMM) 560/2024 Page 2 of 15 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 09/08/2024 at 20:54:06 account the aforesaid factors and in the interest of justice, the plaintiff is granted exemption from effecting advance service upon the defendant nos.1 to 4.
15. Accordingly, the present application is allowed and disposed of. I.A. 32834/2024 (u/O XI Rule 2 as amended by CCA r/w S-151 CPC seeking leave to serve defendant nos.1 to 3 with interrogatories)
16. For the reasons stated in the application, the application is allowed.
17. Accordingly, the present application is allowed and disposed of. I.A. 32833/2024 (u/O XI Rule 1(4) as amended by CCA, seeking leave to file additional documents)
18. The plaintiff seeks a time of 30 days to file additional documents.
19. The plaintiff to file the additional documents at a later stage, albeit, strictly as per the provisions of the aforesaid Act.
20. Accordingly, the present application is allowed and disposed of. I.A. 32837/2024 (Permission to file documents in sealed cover)
21. The plaintiff seeks permission to file some documents in a sealed cover. Let the said documents be filed in the Registry, which shall be kept in a sealed cover.
22. Accordingly, the application stands disposed of. CS(COMM) 560/2024
23. Let the plaint be registered as a suit.
24. Upon filing of the process fee, issue summons of the suit to the defendants through all permissible modes returnable before the Joint Registrar on 17.09.2024.
25. The summons shall state that the written statement(s) be filed by the defendants within a period of thirty days from the date of the receipt of the CS(COMM) 560/2024 Page 3 of 15 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 09/08/2024 at 20:54:07 summons. Written statement(s) be filed by the defendants along with affidavit(s) of admission/ denial of documents of the plaintiff, without which the written statement(s) shall not be taken on record.
26. Replication(s) thereto, if any, be filed by the plaintiff within a period of fifteen days from the date of receipt of written statement(s). The said replication(s), if any, shall be accompanied by with affidavit(s) of admission/ denial of documents filed by the defendant, without which the replication(s) shall not be taken on record within the aforesaid period of fifteen days.
27. If any of the parties wish to seek inspection of any document(s), the same shall be sought and given within the requisite timelines.
28. List before the Joint Registrar for marking exhibits of documents on 17.09.2024. It is made clear that if any party unjustifiably denies any document(s), then it would be liable to be burdened with costs.
29. List before the Court on 20.11.2024.
I.A. 32831/2024 (u/O XXXIX Rule 1 & 2 CPC)
30. In view of application i.e. I.A. 33277/2024 being allowed and a fresh amended (un-numbered) application under Order XXXIX Rule 1 & 2 of the CPC being taken on record, the present application has become infructuous.
31. In view of the aforesaid, the learned counsel for the plaintiff seeks to withdraw the present application.
32. Dismissed as withdrawn.
I.A. (to be numbered) (u/O XXXIX Rule 1 & 2 CPC)
33. In view of the orders passed in I.A. 33277/2024 and I.A. 32831/2024, the Registry is directed to number the present application.
CS(COMM) 560/2024 Page 4 of 15This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 09/08/2024 at 20:54:07
34. The plaintiff vide the present application seeks protection of its intellectual property rights over confidential information, proprietary information, technical know-how and trade secret pertaining to an automatic and semi-automatic robotic system/ equipment developed for loading and unloading of gas cylinders to/ from transport vehicles and methods associated therewith.
35. The plaintiff is a Company incorporated under the Companies Act, 2013 which started its business in the year 1988. The plaintiff is a leader in the innovation and manufacturing of special purpose machines for the oil and gas industry. The plaintiff offers an extensive inventory of diverse automation and robotics products in order to serve the need of the oil and gas industry. The products manufactured by the plaintiff include fully automatic LPG carousal filling machines, robotic loading and unloading of cylinders, cylinder inspection system, bitumen drum filling plants, and bitumen poly-bag filing plants.
36. As per plaintiff, it has provided services to major industry players like India Oil Corporation Limited (hereinafter referred to as 'IOCL'), Bharat Petroleum Corporation Limited (hereinafter referred to as 'BPCL'), Hindustan Petroleum Corporation Limited (hereinafter referred to as 'HPCL') and has over 140 installation bases of LPG filing carousels all over the country. The annual turnover of the plaintiff for the financial years 2019-2020, 2020-2021 and 2021-22 was Rs.108.9 crores, Rs.52.97 and Rs.83.47 crores respectively.
37. About eight years ago, the plaintiff ventured into R&D to develop innovative solutions for the problems faced by the LPG industry. One such output of R&D with the potential to revolutionize the LPG industry is CS(COMM) 560/2024 Page 5 of 15 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 09/08/2024 at 20:54:07 Automatic Robotic Loading and Unloading Systems, which have specifically been developed for loading and unloading of gas cylinders from transport vehicles. On 28.07.2021, plaintiff issued a confidential offer letter to HPCL to install a loading system at HPCL premises. As a consequence, HPCL issued a tender dated 20.09.2021 for the development of robotic loading system wherein the plaintiff participated and was the only bidder. Thereafter, HPCL issued a purchase order on the plaintiff on 03.01.2022.
38. Sometime in 2022, the specification and details of the improved loading system was reduced to a confidential "Concept Note" and the improved system was commissioned at HPCL's site on 24.01.2023. Thereafter, on 11.11.2022, the plaintiff received another purchase order from IOCL for which the system was commissioned on 24.01.2023. Subsequently, IOCL placed another seven orders for plaintiff's Automatic Robotic Loading System for LPG cylinders.
39. Once the plaintiff's product(s) took final shape, the plaintiff in order to seek patent protection, filed various patent application(s). Details of the same are reproduced herein under :
S. No. Application Priority Title
Status Publication
No. Date/ Date Date
of Filing
1. 202211048629 A Robotic 25.08.2022 Opposed 14.07.2023
Equipment
For
Loading
And
Unloading
of Gas
Cylinders
CS(COMM) 560/2024 Page 6 of 15
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 09/08/2024 at 20:54:07 and Method Thereof
2. 202211048630 A Lifting, 25.08.2022 Opposed 24.11.2023 Holding & Carrying Equipment for Gas Cylinders and Method Thereof
3. 202211048631 A System 25.08.2022 Pending 24.11.2023 and Method to Operate a Robotic Equipment for Loading and Unloading of Gas Cylinders
40. The plaintiff claims to be the proprietor of the confidential information, technical knowhow, trade secret, and proprietary information pertaining to its robotic loading and unloading system. The said information and secrets are Intellectual Property that is proprietary to the plaintiff in respect of its robotic system and the same, inter alia, comprises :
a. The Concept Note embodying the overall design of the Automatic Robotic Loading and Unloading System; b. The technical drawings associated with constructing the system;CS(COMM) 560/2024 Page 7 of 15
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 09/08/2024 at 20:54:07 c. The specifications of said system and each of its components;
d. The Bill of Materials required to manufacture said system; e. Operations and Maintenance Manual Robotic Loading System;
f. Original and unique database/directory of suppliers for specific components for the said system.
41. The defendant no.1, namely, Mr. Ankur Gupta, is a former employee of the plaintiff, who was appointed to the post of Chief Manager (Automation-Robotics) vide letter dated 31.05.2021 and his terms of employment included a condition whereby he was prohibited from divulging any information, detail of trade, or any confidential information, technical data, or drawings relating to the plaintiff's products that came to his knowledge or possession for carrying out the assignment of the plaintiff. The defendant no.1 accepted these terms and joined the plaintiff on 01.06.2021. His role comprised of writing the basic code for the loading and unloading operations, and with time, to further improve and refine the code. The other responsibilities of the defendant no.1 while working with the plaintiff included trial and testing of the system, at its developmental stage. He was also deployed at field i.e. working on the sites of the customer where the system was being installed.
42. Thereafter, on 13.05.2023 the defendant no.1 refused to fulfil his role and responsibility and handed over his laptop provided by the plaintiff and emailed his resignation letter from the position of Chief Manager (Automation-Robotics) on 15.05.2023 which was accepted on the same date by the plaintiff and as a matter of routine, his inbox and outbox of the official email address was scrutinized as well.
CS(COMM) 560/2024 Page 8 of 15This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 09/08/2024 at 20:54:07
43. On 22.05.2023, while examining the inbox and outbox of the official email address of defendant no.1 on the laptop provided by the plaintiff company, it was noticed by the plaintiff that on 04.04.2023, the defendant no.1 had, inter alia, emailed the details of the components/ bill of materials data of plaintiff's proprietary robotic system from his official email address [email protected] to his personal email address [email protected]. Similarly, on 08.05.2023 also the defendant no. 1 had emailed the Concept Note for loading and unloading from his official email address [email protected] to his personal email address [email protected], which as per plaintiff were the confidential information/ documents to which the defendant no.1 was never given access to during his course of employment and thus had no authority to transfer the same without authorization of the company. The plaintiff, upon enquires, came to know that the defendant no.1 had in fact deceived other employees of the plaintiff to share the confidential information/ documents with his official email address on the pretext that the said confidential information/ documents were needed for use by the plaintiff for its purposes.
44. Being aggrieved, the plaintiff issued a show cause notice dated 31.05.2023 to the defendant no.1 to show cause for the illegal and unlawful transfer and transmission of the confidential information of the plaintiff without authorization, to which, the defendant no.1 vide reply dated 09.06.2023 denied all allegations therein. Another communication dated 13.06.2023 was issued by the plaintiff to the defendant no.1, to which, the defendant no.1 vide reply dated 14.06.2023, again denied all allegations therein. Thereafter, the plaintiff filed criminal complaints dated 07.07.2023, CS(COMM) 560/2024 Page 9 of 15 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 09/08/2024 at 20:54:07 27.10.2023 and 10.04.2024 against defendant no.1.
45. The plaintiff claims that the defendant no.1 has started working with defendant no.2, namely, JRPT Automation Pvt. Ltd. and/ or its promoters which/ who were engaged in the same industry as the plaintiff.
46. In fact, it is the same defendant no. 2, who has since filed two pre- grant opposition application nos. 202211048629 and 202211048630 on 09.01.2024 and 14.05.2024 respectively to the aforementioned patent applications of the plaintiff.
47. The plaintiff claims that the defendant no.3, namely Mr. Pankaj Chaudhary is also acting in collusion with the defendant nos. 1 & 2 as he also has filed a pre-grant opposition application no. 202211048630 dated 15.05.2024 against one of the aforementioned patent application(s) of the plaintiff relying upon the internal confidential information/ documents of the plaintiff, which being confidential in nature, are not available in the public domain.
48. This Court has heard the learned counsel appearing for the plaintiff as also gone through the averments made in the application alongwith the documents on record.
49. The plaintiff, being a company involved in providing diverse automation and robotics technologies is catering to the need of the oil and gas industry including major industry players all across the country and is manufacturing fully automatic LPG carousal filling machines, robotic loading and unloading of cylinders, cylinder inspection system, bitumen drum filling plants, and bitumen poly-bag filing plants. The plaintiff has invested considerable time and effort in research and development for revolutionising the Automatic Robotic Loading and Unloading Systems CS(COMM) 560/2024 Page 10 of 15 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 09/08/2024 at 20:54:07 developed for transport vehicles.
50. The defendant no.1, as Chief Manager (Automation-Robotics) of the plaintiff in view of the letter of 31.05.2021 was indeed prohibited from divulging any information, detail of trade, or any confidential information, technical data, or drawings relating to the plaintiff's products and had limited access to the confidential information, technical knowhow, trade secret, and proprietary information pertaining to its robotic loading and unloading system, which were/ are the intellectual property of the plaintiff.
51. An inspection of the laptop provided by the plaintiff to the defendant no.1, which was returned whence he left the services revealed that though the defendant no.1 resigned as Chief Manager (Automation-Robotics) on 15.05.2023 but prior thereto on 04.04.2023 and again on 08.05.2023, he had sent confidential information/ documents of the plaintiff from his official email address [email protected] to his personal email address [email protected], for which, he was never given any due access or authorization by the plaintiff during his course of employment.
52. Further, the same defendant no.1 sent a vague reply to the Show Cause Notice dated 31.05.2023 issued by the plaintiff. In fact, he is now working with the defendant no.2, who is in the same industry as the plaintiff. In fact, the same defendant no.2 has already filed two pre-grant opposition application nos.202211048629 and 202211048630 on 09.01.2024 and 14.05.2024 respectively to the aforementioned patent applications of the plaintiff which shows that both the said defendants are hand in gloves with each other. The defendant no.1 is sharing the confidential information/ documents of the plaintiff without any right, CS(COMM) 560/2024 Page 11 of 15 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 09/08/2024 at 20:54:07 permission or authority over them to do so with the defendant no.2. In fact, as per plaintiff, the defendant no.3 has also filed a pre-grant opposition against one of the aforementioned patent application of the plaintiff accompanied with similar documents as of the defendant no.2.
53. In view of the aforesaid, the plaintiff has been able to make out a prima facie case with the balance of convenience for grant of an ex-parte ad interim injunction in its favour and against the defendant nos.1 and 2 only and not against the defendant no.3 for the time being. This Court is of the opinion that if the said defendant nos.1 and 2 are not restrained by way of an ex-parte ad interim injunction, there is a likelihood of the plaintiff suffering irreparable harm, loss, injury and strong prejudice for which it cannot be compensated in terms of money.
54. Accordingly, under such circumstances, the defendant nos.1 and 2, their agents, servants, employees and all persons acting for/ on their behalf, are, till the next date of hearing, restrained from disclosing, misappropriating, using, transferring, transmitting, or dealing with the plaintiff's confidential information, trade secret, and proprietary information in any manner to any third party.
55. Upon filing of process fee, issue notice to all the defendants by all permissible modes returnable on the next date of hearing before the Joint Registrar.
56. Reply, if any, be filed within a period of thirty days from the date of service. Rejoinder thereto, if any, be filed within a period of fifteen days thereafter.
57. The provisions of Order XXXIX Rule 3 of the Code of Civil Procedure, 1908 be complied within a period of two weeks from today.
CS(COMM) 560/2024 Page 12 of 15This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 09/08/2024 at 20:54:07
58. List on 20.11.2024.
I.A. 33278/2024 (u/O XXVI Rule 9 CPC seeking appointment of Local Commissioner)
59. Counsel for the plaintiff submits that the defendants are aware of the plaintiff and its various products. It is submitted that the defendants have unauthorised access to the confidential information, trade secrets and technical know-how of the plaintiff and the plaintiff anticipates that they might either misuse or delete the same when made aware of the present proceedings. In particular, he submits that the defendant nos.1 and 2 may have downloaded the confidential information/ data/ trade secrets of the plaintiff onto their personal devices, such as mobile phone, desktops, laptops and tablets.
60. In light of the aforenoted factual matrix and in order to preserve evidence of misappropriation of the plaintiff's confidential information, trade secrets and technical know-how, it is deemed necessary that Local Commissioners are appointed to visit the premises of the defendants. Accordingly, the following are appointed as Local Commissioners with a direction to visit the premises of the defendants specified against their name:
S. Name and contact details of Location No. Local Commissioner(s)
1. Mr. Arjun Drall, Adv. Defendant No.1 - Mr. Ankur Gupta [+91-98183-68102] H. No. 129/126, East Chawla Colony, Ballabgarh, Faridabad, Haryana - 121004
2. Ms. Drishti Harpalani, Adv. Defendant No.2 - JRPT Automation CS(COMM) 560/2024 Page 13 of 15 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 09/08/2024 at 20:54:07 [+91-96545-43614] Pvt. Ltd.
Plot No. 5/6, Jeevan Nagar, Sector -
87, Nehar Par, Faridabad, Haryana -
121002
61. The commission be executed with the following directions:
a) Local Commissioner(s) shall be accompanied by the representative(s) of the plaintiff as well as counsel of the plaintiff.
b) Local Commissioner(s) shall visit the premises of the defendants as outlined above and prepare an inventory and seize all personal/ professional devices such as mobile phones, laptops, desktops and laptops which might contain the plaintiff's confidential information, trade secret, and proprietary information. The said items shall after seizure, be returned on superdari to the respective defendants after taking an undertaking that the defendants shall not tamper with the sealed items.
c) Local Commissioner(s) is permitted to take a photocopy/ screenshot of all the books of accounts including ledgers, cashbooks, purchases and sales records, etc. in physical, electronic form and place the same on record.
d) To ensure unhindered and effective execution of the commission, the Station House Officer (SHO) of the local police station within whose jurisdiction the premises of defendants lie, is directed to render all necessary assistance and protection to the Local Commissioner(s), if and when sought.CS(COMM) 560/2024 Page 14 of 15
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 09/08/2024 at 20:54:07
e) In the event, the Local Commissioner(s) finds the premises of the defendants locked, the same are permitted to break open in the presence of the SHO/ designated police officer.
62. The commission be executed within a period of one week from today, i.e. on or before 22.07.2024.
63. The fee of the Local Commissioner(s) is fixed at Rupees One Lakh Twenty Five Thousand Only [Rs.1,25,000/-] each to be borne by the plaintiff and paid in advance. The plaintiff shall also bear expenses for travel of the Local Commissioner(s) and other miscellaneous out of pocket expenses for the execution of the Commission.
64. A copy of this order be provided to each of the Local Commissioner(s) named hereinabove.
65. Accordingly, the application is allowed and is disposed of.
Dasti.
SAURABH BANERJEE, J .
JULY 15, 2024/akr CS(COMM) 560/2024 Page 15 of 15 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 09/08/2024 at 20:54:07