Delhi High Court - Orders
Addverb Technologies Limited vs Neeraj Kumar & Ors on 4 November, 2022
$~24
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ CS(OS) 675/2022 & I.A. Nos. 17933/2022 & 17934/2022
ADDVERB TECHNOLOGIES LIMITED ..... Plaintiff
Through: Mr. Darpan Wadhwa, Senior
Advocate with Ms. Padmaja
Kaul, Ms. Ayshwarya Chandar
and Mr. Ketul Hansraj,
Advocates.
(M): 8826711055
7042209966
Email: [email protected]
versus
NEERAJ KUMAR & ORS. ..... Defendants
Through: None.
CORAM:
HON'BLE MS. JUSTICE MINI PUSHKARNA
ORDER
% 04.11.2022 [Physical Hearing/Hybrid Hearing] I.A. No. 17934/2022 (Application under Section 151 CPC seeking exemption from filing certified copies, true copies and dim copies of annexures/documents filed with the accompanying suit)
1. This is an application under Section 151 CPC seeking exemption from filing certified copies, true copies and dim copies of annexures/documents filed with the accompanying suit.
2. Recording plaintiff's undertaking that inspection of original documents shall be given, if demanded, or that original documents shall be filed prior to stage of admission/denial, the exemption is allowed.
3. As prayed, plaintiff is allowed to file clear copies and typed Signature Not Verified Digitally Signed By:PURAN SINGH TARIYAL Signing Date:04.11.2022 15:32:35 version of hand written documents within four weeks.
4. Application is disposed of.
CS(OS) 675/2022
5. Let the plaint be registered as a suit.
6. Issue summons to defendants through all modes upon filing of process fee.
7. The summons to defendants shall indicate that a written statement to plaint shall be positively filed within 30 days from date of receipt of summons. Along with written statement, defendants shall also file an affidavit of admission/denial of documents of plaintiff, without which written statement shall not be taken on record.
8. Liberty is given to plaintiff to file a replication within 15 days of receipt of written statement. Along with replication, if any, filed by plaintiff, an affidavit of admission/denial of documents of defendants, be filed by plaintiff, without which replication shall not be taken on record.
9. List before Joint Registrar for marking of exhibits on 12.12.2022
10. List before this Court on 23.02.2023.
I.A. No. 17933/2022 (Application filed under Order XXXIX Rules 1 and 2 read with Section 151 CPC on behalf of plaintiff)
11. This is an application under Order XXXIX Rules 1 and 2 read with Section 151 CPC on behalf of plaintiff.
12. It is the case of plaintiff that plaintiff is engaged in providing customized automation solutions for its customers across the world. The confidential information/trade secrets and technical know-how of Signature Not Verified Digitally Signed By:PURAN SINGH TARIYAL Signing Date:04.11.2022 15:32:35 plaintiff comprises product designs, solution designs of its projects, customer and supplier information, customer project details, financial information such as product prices, sale price analysis and profit and loss statements and processes. The plaintiff has learnt over years about product development, product installation. It is further submitted that plaintiff also has developed technical know-how with respect to automation project management and its implementation. In addition, it is submitted that plaintiff has manufactured robots based on industry 4.0 technology for industrial application such as automated storage and retrieval systems, sorting robots and autonomous mobile robots. In addition to products, plaintiff has also developed its own proprietary software comprising Warehouse Management System, Warehouse Control System, Warehouse Execution System and Fleet Management System, at its own manufacturing facility situated in Noida, Uttar Pradesh.
13. It is submitted that defendant no. 1 i.e. Mr. Neeraj Kumar, is an is an ex-employee of Plaintiff, who joined plaintiff as Chief Manager - Projects on 07.01.2019. Thereafter, he worked as Chief Manager- Sales with plaintiff no. 1. Defendant no.1 worked for plaintiff for 3 years and 7 months. He resigned from services of plaintiff on 18.06.2022, and last day of defendant no. 1 with plaintiff company was on 14.07.2022.
14. It is submitted that after his resignation from plaintiff, defendant no.1 has joined the services of defendant no.2, who is a competitor of plaintiff, as General Manager - Business Development.
15. Learned senior counsel appearing for plaintiff submits that Signature Not Verified Digitally Signed By:PURAN SINGH TARIYAL Signing Date:04.11.2022 15:32:35 defendant no. 1 has violated express terms of Acceptable Usage Policy and the Code of Conduct of plaintiff which were binding on defendant No.1 and which contained strict confidentiality and non compete obligations.
16. Attention of this Court has been drawn to Clause 5.14 which pertains to confidential agreement and the same is reproduced as below:-
"5.14. Confidential Agreement o The employee shall not, either during or after his/her employment, divulge or utilize any confidential information belonging to Addverb Technologies Pvt Ltd. This includes confidential information on.
o Processes o Business Projects - current and expected o IT infrastructure setup This may be gained during their employment. They, both during and after their employment, shall take all reasonable precautions to keep all such information confidential.
• Except as may be necessary for the purpose of his/ her duties, the employee shall not, without the consent of their managers, retain or make originals or copies of o Identity cards o Letterheads o reports o application designs o source code o calculations o Specifications of products o formulas o forms Signature Not Verified Digitally Signed By:PURAN SINGH TARIYAL Signing Date:04.11.2022 15:32:35 o licenses o agreements o Or other documents (electronic or paper) of whatever nature belonging to Addverb Technologies Pvt Ltd.
• Employees shall not o Access o Read o Copy o divulge to others o delete or destroy Any type of information not in his scope of work belonging to other employees without the consent and signed approval of appropriate authority.
Employees who have been assigned Addverb Technologies Pvt Ltd.'s assets e.g., laptops, mobile for internal or external use shall comply with the statements of confidentiality mentioned above.
If on the termination of his / her employment, the employee is in possession of any originals or copies of the above-mentioned material, he / she shall deliver the same to Addverb Technologies Pvt Ltd.
Employees with access to privileged information shall not divulge that information even to other employees or third parties.
Failure of any employee to comply with the confidentiality required above shall give the right to act as deemed Signature Not Verified Digitally Signed By:PURAN SINGH TARIYAL Signing Date:04.11.2022 15:32:35 appropriate, including legal action"
17. Attention of this Court has also been drawn to the aspect of Privilege information, which employees were obliged to not to divulge to other employees and also to anyone else. The relevant clause with respect thereto is reproduced as under:-
"Confidential Information: We shall respect, protect and not disclose confidential information of the organization. Any personal or professional information received during our business is termed as confidential information. Confidential information includes, (but is not limited to) customer details, product details, software architecture, vendor/supplier details, designs, financial information, Intellectual Property or any other details that are not available in the public domain. In case the need arises, confidential information must be used for business purposes only. We shall not use any confidential information for personal gain under any circumstances."
18. It is submitted by learned senior counsel appearing for plaintiff that defendant no. 1 on his last working day with plaintiff, in an illegal and unauthorized manner, fraudulently sent bulk emails containing confidential information of plaintiff from his plaintiff provided official email address to his personal email address. Thus, it is submitted that defendant no. 1 continues to be in illegal possession of plaintiff's confidential information and trade secrets, which he acquired by virtue of holding a senior position with plaintiff. It is submitted that these emails contained highly confidential and sensitive information belonging to plaintiff in relation to inter alia customer project details, product details, solution designs of plaintiffs projects, layout drawings Signature Not Verified Digitally Signed By:PURAN SINGH TARIYAL Signing Date:04.11.2022 15:32:35 drawn up by plaintiff, etc.
19. The present suit has been filed as plaintiff is aggrieved by grave threat of potential injury and loss owing to breach of confidentiality and trade secrets of plaintiff by defendant no. 1. Plaintiff is also aggrieved by tortious acts of inducement of breach of contract as well as wrongful interference in contracts between plaintiff and its existing employees and ex-employees by defendant nos. 2 and 3.
20. Attention of this Court has been drawn to Offer Letter dated 02.07.2022 issued by defendant no. 3 to one Mr. Chiranjit Ghara, who is an employee of plaintiff working at a senior position of Senior Engineer- Automation.
21. Attention of this Court has also been drawn to an Offer Letter dated 27.07.2022 issued to one Mr. Vishwas Punjani by defendant no. 3 company. Mr. Vishwas Punjani is working as Deputy Manager- Design with plaintiff company. Thus, it is submitted that defendant no. 3 company is trying to poach employees of plaintiff company.
22. It is submitted on behalf of learned senior counsel for plaintiff that the aforesaid two employees are still the employees of plaintiff. However, the said offer letters as issued by defendant no. 3 shows that the defendant no. 3 is not only trying to poach the employees of plaintiff company but is also trying to poach the technical know-how which those employees may possess by virtue of their employment with plaintiff company.
22. It is the case of plaintiff that defendant nos. 2 and 3 and its group entities have been actively soliciting the business of plaintiff Signature Not Verified Digitally Signed By:PURAN SINGH TARIYAL Signing Date:04.11.2022 15:32:35 and thereby aiding and inducing a breach of contract between its employees and plaintiff. It is submitted by learned senior counsel appearing for plaintiff that defendant no. 2 after luring the employees of plaintiff from their employment, are inducing the employees to part with confidential information pertaining to plaintiff causing wrongful loss to plaintiff and wrongful gain to defendants.
23. Thus, it is submitted that plaintiff has prima facie case in its favour as defendant no. 1 has taken away highly confidential information and trade secrets of plaintiff and joined defendant no. 2-3 which have induced defendant no. 1 to breach his confidentiality obligations with plaintiff.
24. I have heard learned senior counsel for plaintiff and have also perused the various documents which learned senior counsel has referred to during the course of hearing.
25. This Court is of the view that plaintiff has been able to make a prima facie case in its favour. Balance of convenience also lies in favour of plaintiff. The plaintiff would be exposed to huge financial harm and potential loss of its potent customer base, if protection is not granted to plaintiff by this Court. This Court is in agreement with learned senior counsel for plaintiff that plaintiff has apprehension that defendants may use its employee base further, all of whom have been specially trained in various areas of technical expertise and significant amounts of time and money have been spent by plaintiff on such training.
26. Learned senior counsel for plaintiff has submitted that they have filed 33 emails along with present suit wherein defendant no. 1 Signature Not Verified Digitally Signed By:PURAN SINGH TARIYAL Signing Date:04.11.2022 15:32:35 has sent the confidential information/official emails to his own personal email account. Attention of this Court has also been drawn to said emails as attached along with the present suit.
27. Considering the aforesaid, defendant no. 1 is restrained from sharing and disclosing any information which he has obtained/collated while in employment with plaintiff company, especially the information as contained in emails which the defendant no. 1 has transferred to his personal email on last date or any other previous date of his employment.
28. Considering the submissions made before this Court, defendant no. 2 and 3 are also restrained from utilising the confidential information/trade secrets/technical know-how of the plaintiff and/or its customers, which defendant nos. 2 and 3 may have obtained from defendant no. 1.
29. Compliance affidavit under Order 39 Rule 3 CPC be filed within a week.
30. Issue notice to defendants.
31. Reply be filed within four weeks. Rejoinder thereto, if any, be filed within two weeks thereafter.
32. List before this Court on 23.02.2023.
33. Dasti.
MINI PUSHKARNA, J NOVEMBER 4, 2022 c Signature Not Verified Digitally Signed By:PURAN SINGH TARIYAL Signing Date:04.11.2022 15:32:35