Advance Cable Technologies Private … vs Sanu S Nath on 18 July, 2026

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    Bangalore District Court

    Advance Cable Technologies Private … vs Sanu S Nath on 18 July, 2026

     170020142022
    
    
    
    
    IN THE COURT OF LXXXVI ADDL. CITY CIVIL & SESSIONS
      JUDGE, (COMMERCIAL COURT) BENGALURU (CCH-87)
              Dated this the 18th day of JULY, 2026
    
        Present: SRI JITHENDRANATH C.S., B.A., LL.M.,
                 LXXXVI ADDL. CITY CIVIL & SESSIONS JUDGE
                 BENGALURU.
                      Com.O.S.No.1073/2022
     BETWEEN:
     PLAINTIFF      : ADVANCE CABLE TECHNOLOGIES
                      PRIVATE LIMITED,
                      A company registered under the
                      Indian Companies Act, 1956,
                      having its registered office at:
                      G-1, Sunrise Serenity, No.1,
                      40 Feet Road, M.R.Garden,
                      Gedanahalli, Ashwathnagar,
                      Bangalore, Karnataka - 560094.
                      Represented by its Director,
                      Shashank Kumar Jain.
                     (By Sri.Ajay J. Nandalike advocate)
    
                            - AND -
    
     DEFENDANTS : 1. Mr.SANU S. NATH,
                  Son of Sukhdev Nath,
                  Aged about 32 years,
                  Employee of
                  Adity Composite Private Limited,
                  Residing at:
                  Balijan Bongaon Part,
                  Balijan, Tinsukia,
                  Assam-786171.
               2
                         Com.OS.No.1073/2022
    
    
    Also having office/factory at:
    Plot No.391 & 392,
    Sub Layout of Sompura 1st Stage,
    Industrial Area, Niduvanda,
    Nelamangala Taluk,
    Bangalore Rural,
    Karnataka - 562111.
    2. Mrs. POMPI DAS,
    Wife of Sanu S. Nath,
    Aged about 26 years,
    Director of
    Adity Composite Private Limited,
    Residing at Balijan Bongaon Part
    Balijan, Tinsukia
    Assam-786171.
    Also having office/factory at:
    Plot No.391 & 392,
    Sub Layout of Sompura 1st Stage,
    Industrial Area, Niduvanda,
    Nelamangala Taluk,
    Bangalore Rural,
    Karnataka - 562111.
    3. Mr. MONTU DAS,
    Son of Gyan Das
    Aged Major
    Director of
    Adity Composite Private Limited,
    Residing at Balijan Bongaon Part,
    Balijan, Tinsukia,
    Assam - 786171.
    Also having office/factory at:
    Plot No 391 & 392, Sub Layout of Sompura
    1st Stage Industrial Area, Niduvanda
    Nelamangala Taluk,
    Bangalore Rural,
    Karnataka 562111.
    4. ADITY COMPOSITE PRIVATE LIMITED,
    A company registered under the
                                    3
                                                 Com.OS.No.1073/2022
    
    
                         Companies Act, 2013
                         Having its Registered Office at,
                         Plot No 391 & 392,
                         Sub Layout of Sompura,
                         1st Stage Industrial Area,
                         Niduvanda Nelamangala Taluk,
                         Bangalore Rural,
                         Karnataka-562111,
                         Represented by its Director.
                         (By Sri. Rishabha Raj Thakur, advocate)
    
    Date of Institution                 : 28.07.2022
    
    Nature of the suit                  : Infringement of Trade Secrets
                                        and for recovery of damages.
    Date of the commencement            : 17.01.2024
    of recording of the evidence
    Date on which the Judgment          : 18.07.2026
    was pronounced
    Total Duration                      : Year/s        Month/s                Day/s
                                            04            00                    20
                                                        Digitally signed by
                                                        JITHENDRANATH S
                                        JITHENDRANATH   CHELUR
                                        S CHELUR        Date: 2026.07.18
                                                        17:40:53 +0530
    
    
                                  (JITHENDRANATH C.S.)
                          LXXXVI Addl. City Civil & Sessions Judge,
                                        Bengaluru.
    
                             JUDGMENT
    

    The plaintiff is said to be a company interalia engaged

    in the business of manufacture and process of copper and

    SPONSORED

    other metals based various types of wires/cables, optical

    cables, wire harnesses, compounding telecom cables,

    Automotive cables, cables and harnesses for Electrical
    4
    Com.OS.No.1073/2022

    Vehicles, Charging Stations, inter connects etc. The

    defendant No.1 was an employee of the plaintiff company.

    The defendant No.1 had provided with six months training

    effective from 02.11.2015 in which he had undergone the

    process of manufacturing and handling of various

    machineries and tools. He was promoted from trainee

    supervisor to supervisor vide letter dated 01.11.2016 and he

    was entrusted with responsibilities to take care of the day

    today affairs of the factory and office of the plaintiff company.

    Vide letter dated 01.07.2017 his appointment was confirmed

    as supervisor. Having taken consideration of his long

    standing relationship the plaintiff company promoted him as

    engineer. The defendant No.1 had signed an employment

    contract dated 01.04.2018 through which he under took that

    he would not divulge in any confidential information, know-

    how, secret, methods, plans, data and such other trade

    secrets of the plaintiff company that he acquired during his

    course of service. The defendant No.1 was later promoted to

    the post of manager vide letter dater 01.10.2020 and entered

    in to a fresh employment agreement and code of conduct

    dated 01.10.2020 with the plaintiff company. The plantiff
    5
    Com.OS.No.1073/2022

    company had three units and the defendant No.1 was in

    charge and responsible to manage unit No.2 and unit No.3.

    By the virtue of his position as a manager, the defendant

    No.1 had a complete knowledge of the entire workings of the

    plaintiff, its trade secrets including commercial information

    in relation to customers, proprietary trade secrets in relation

    to chemical and physical composition of the cables. The

    design specifications and the materials and material used for

    manufacturing of the cables are unique and not available in

    public domain. By the virtue of being a manager the

    defendant No.1 had learnt about the design, make and

    method of manufacture of the cables and also the details of

    the plaintiff ‘s customers. The plaintiff holds the copyright in

    respect of the design, shape, drawing, specifications,

    components, materials and method of manufacture of the

    cables. The plaintiff is one of the largest manufacturers and

    suppliers in the country and the plaintiff supplies to various

    customers, Government bodies and Public Sector

    undertakings like Railway, Defence, Metro and many other

    domestic and multi national companies. The plaintiff alleges

    that the defendant No.1 had taken out materials worth of
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    Com.OS.No.1073/2022

    Rs.25,60,000/- from Unit No.2 of the plaintiff company in the

    guise of transporting the same to Unit No.3 and when the

    plaintiff verified the records, the defendant sent a resignation

    letter dated 12.03.2022. The plaintiff further alleges that the

    defendant No.1 in conspiracy with his wife Smt. Pompi Das

    i.e., defendant No.2, his father-in-law Sri Montu Das i.e.,

    defendant No.3, has started the defendant No.4 company in

    the same line of business the plaintiff is carrying on.

    According to the plaintiff, the plaintiff is one of the largest

    manufacturers and supplier to various customers namely

    Crest Specialty Resins Pvt Ltd., OCV India/Balaji Trading

    Company, Jushi India Fiberglass Pvt. Ltd., Goa Glass Fibre

    Ltd., Chemclotex Corporation, ACS UV Technologies,

    Precision Panel Technology, V Cube Industries, Sai

    Extrumech Pvt. Ltd., and Sunil Engineering. The Defendants

    are approached the above suppliers and also supplying the

    materials to the competitors’ companies viz., Jyothi Cables,

    Semita Technologies Pvt Ltd., KEC International Limited,

    West Coast/Telecom/Sudarshan Telecom, Poly Links and

    Akash Cables. The plaintiff alleges that the defendant

    against to his undertaking soliciting the customers of the
    7
    Com.OS.No.1073/2022

    plaintiff. In this background, the plaintiff has filed this suit

    seeking the following reliefs:

    a) Grant permanent injunction restraining the
    Defendants, their officers, directors, employees,
    agents, representatives, successors in interest,
    assignees or anybody acting through them or on
    their behalf from, in any manner whatsoever,
    utilising and disclosing the Plaintiff’s trade secret,
    confidential, strategic and proprietary information
    acquired by Defendant No.1 virtue of his
    association with the Plaintiff;

    b) Grant permanent injunction restraining the
    Defendants their officers, directors, employees,
    agents, representatives, successors in interest,
    assignees or anybody acting through them or on
    their behalf from infringing the copyright and
    trade secrets of the Plaintiff;

    c) Grant permanent injunction restraining the
    Defendants, their officers, directors, employees,
    agents, representatives, successors in interest,
    assignees or anybody acting through them or on
    their behalf from, in any manner whatsoever from
    soliciting the clients and/or customers of the
    Plaintiff Company or in any manner entering into
    any agreements with them;

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    Com.OS.No.1073/2022

    d) Grant permanent injunction restraining the
    Defendants, their officers, directors, employees,
    agents, representatives, successors in interest,
    assignees or anybody acting through them or on
    their behalf from, in any manner whatsoever from
    soliciting the employees of the Plaintiff Company
    and appointing the ex-employees of the Plaintiff
    Company to the Defendant No.4 company;

    e) Grant permanent injunction restraining the
    Defendants, their officers, directors, employees,
    agents, representatives, successors in interest,
    assignees or anybody acting through them or on
    their behalf from, in any manner whatsoever from
    approaching the suppliers of the Plaintiff company
    and supplying materials to any of the competitors
    of the Plaintiff Company;

    f) Grant permanent injunction restraining the
    Defendants, their officers, directors, employees,
    agents, representatives, successors in interest,
    assignees or anybody acting through them or on
    their behalf from, in any manner whatsoever from
    disclosing the technology of the Plaintiff Company
    and selling the machineries similar to that of the
    Plaintiff Company to any of the competitors of the
    Plaintiff Company;

    9

    Com.OS.No.1073/2022

    g) Direct the Defendants to pay sum of Rs.

    Rs.25,60,000/- (Rupees Twenty Five Lakh and
    Sixty Thousand Only) along with 18% interest
    towards the damages for the loss caused to the
    Plaintiff Company;

    h) Grant the cost of the instant Suit; and

    i) Grant any other relief or reliefs, that this Hon’ble
    court may deem fit.

    2. The Defendants No.1 to 4 have filed a common written

    statement traversing the averments contained in the plaint.

    It is admitted that the Defendant No.1 was formerly in the

    employment of the Plaintiff-Company. However, it is

    contended that even prior to joining the services of the

    Plaintiff-Company, the Defendant No.1 possessed over five

    years of prior work experience. It is further pleaded that

    during the period of his training, the Defendant No.1 in fact

    apprised the Plaintiff-Company of the manufacturing process

    of its products and rendered assistance in augmenting its

    business operations. The Defendants have categorically

    denied that the Plaintiff-Company imparted any training to
    10
    Com.OS.No.1073/2022

    the Defendant No.1, or that it disclosed to him the

    manufacturing process, customer particulars, and other

    trade secrets. It is averred that the Plaintiff-Company had

    reposed confidence in the Defendant No.1 and entrusted him

    with the management of product planning, quality control,

    and product development. The specific averment that the

    Defendant No.1 was in-charge of and responsible for the

    management of Unit No.1 and Unit No.3 is denied. It is

    further pleaded that prior to joining the Plaintiff-Company,

    the Defendant No.1 had been in employment with three other

    companies.

    3. The Defendants have denied the allegation made

    against the Defendant No.1 that he had removed materials

    from Unit No.1 and Unit No.3. It is, however, admitted that

    the Defendant No.1 tendered his resignation to the Plaintiff-

    Company. Save and except the said admission, the

    Defendants have denied all other allegations levelled against

    the Defendant No.1. It is contended that there are over one

    thousand companies operating in the same line of business

    across the country. The Defendants assert that they have no
    11
    Com.OS.No.1073/2022

    malafide intention either to compete with the Plaintiff-

    Company or to cause it any loss. It is further averred that

    the Defendant No.1 did not acquire any confidential

    information during the course of his employment with the

    Plaintiff-Company. It is also pleaded that the Defendant No.1

    joined the Plaintiff-Company as a Training Supervisor in the

    year 2015 and continued in its service till 22.03.2026. It is

    stated that the Defendant No.2 incorporated a company

    under the name and style of ‘Adity Composite Private Limited’

    on 28.06.2021. It is further contended that after the

    resignation of the Defendant No.1, the Plaintiff-Company

    lodged a false complaint against him before the Dodballapur

    Police Station in Crime No.68/2022, after an unexplained

    delay of four months, alleging misappropriation. According to

    the Defendants, the present suit has been instituted by the

    Plaintiff-Company with malafide intention. In light of the

    above submissions, the Defendants have prayed that this

    Court be pleased to dismiss the suit with costs.

    4. On the basis of the above pleadings, the court has

    framed the following issues:

    12

    Com.OS.No.1073/2022

    ISSUES

    1. Whether the plaintiff prima facie proves that 1st
    defendant being its former employee in
    conspiracy with defendants 2 to 3 started 4th
    defendant company in the same line of business
    as that of plaintiff and manufacturing the similar
    product using machinery which are exclusively
    used by the plaintiff and thereby defendants are
    required to be restrained by order of permanent
    injunction?

    2. Whether balance of convenience tilts in favour of
    plaintiff?

    3. Whether plaintiff proves that he will be put to
    irreparable injury if an order of injunction
    against defendants is not granted?

    4. Whether plaintiff proves that defendants are also
    liable to pay a sum of Rs.25,60,000/- by way of
    damages along with interest for the loss caused
    to the plaintiff company by them?

    5 What order or decree?

    5. In order to substantiate its case, the Plaintiff-Company

    examined its Senior General Manager, Sri M. Harish, as

    P.W.1, and got marked documents at Ex.P.1 to Ex.P.31. In

    rebuttal, the Defendant No.1, Sri Sanu S. Nath, examined

    himself as D.W.1, and got marked documents at Ex.D.1 to

    Ex.D.3.

    13

    Com.OS.No.1073/2022

    6. The court has heard the arguments of both the

    parties.

    7. Having heard the matter, the court answers the above

    issues as follows:

    Issue No.1 : In the negative,
    Issue No.2 : In the negative,
    Issue No.3 : In the negative,
    Issue No.4 : In the negative,
    Issue No.5 : As per final order
    for the following:

    REASONS
    Evidence before the court:-

    8. In his evidence affidavit, P.W.1 Sri M. Harish has

    reiterated the averments made in the plaint. The Plaintiff-

    Company has produced and got marked the original Board

    Resolution dated 08.01.2024 as Ex.P.1. Ex.P.2 to Ex.P.22 are

    21 documents filed along with the list of documents and

    admitted by the Defendants in their Statement of Admission

    and Denial, and accordingly marked as Ex.P.2 to Ex.P.22

    respectively. Ex.P.2 is a copy of the Certificate of Fresh

    Incorporation and Ex.P.3 is a copy of the Certificate of

    Incorporation. Ex.P.4 is the Certificate of Registration of

    Alteration of Objects and Ex.P.5 is a copy of the Articles of
    14
    Com.OS.No.1073/2022

    Association. Ex.P.6 is a copy of the Offer Letter. Ex.P.7 is a

    copy of the Trainee Supervisor Training Letter dated

    02.11.2015 and Ex.P.8 is a copy of the Appointment Letter

    dated 05.11.2018. Ex.P.9 is a copy of the Confirmation Letter

    dated 01.05.2017 confirming the appointment of the

    Defendant No.1 as Supervisor. Ex.P.10 is a copy of the

    Promotion Letter dated 01.04.2018 promoting the Defendant

    No.1 as Engineer and Ex.P.11 is a copy of the Employment

    Agreement and Code of Conduct dated 01.04.2018 executed

    by the Defendant No.1. Ex.P.12 is a copy of the Promotion

    Letter dated 01.10.2020 promoting the Defendant No.1 to the

    post of Manager and Ex.P.13 is a copy of the Employment

    Agreement and Code of Conduct dated 01.10.2020. Ex.P.14 is

    a copy of the Resignation Letter dated 12.03.2022 tendered

    by the Defendant No.1. Ex.P.15 is the statement showing

    transfer of materials from Unit No.2 to Unit No.3. Ex.P.16 is a

    copy of Delivery Challan bearing No.095 relating to

    transfer/delivery of materials. Ex.P.16(a) is a copy of the

    logbook/register extract relating to outgoing material

    transactions from Unit No.2 and Ex.P.16(b) is a copy of the

    logbook/register extract relating to incoming material
    15
    Com.OS.No.1073/2022

    transactions to Unit No.3. Ex.P.17 is a copy of the Certificate

    of Incorporation of ‘Adity Composite Private Limited’, Ex.P.18

    is a copy of its Memorandum of Association and Ex.P.19 is a

    copy of its Articles of Association. Ex.P.20 is a copy of the

    Company Master Data of ‘Adity Composite Private Limited’.

    Ex.P.21 is a copy of the employee details/nominee details of

    the Defendant No.1. Ex.P.22 is a copy of the Complaint Letter

    dated 26.03.2022 lodged before Doddaballapura Police

    Station seeking registration of FIR against the Defendant

    No.1. Ex.P.23 is a copy of the FIR dated 29.03.2022. Ex.P.24

    and Ex.P.25 are Notices dated 09.12.2022 issued to Guru

    Krupa Consultancy Service and Mukarji Enterprises

    respectively. Ex.P.26 is the Reply Notice dated 13.12.2022

    issued by Guru Krupa Consultancy along with email and

    postal cover. Ex.P.27 is the Employment Application and Bio-

    data submitted by the Defendant No.1. Ex.P.28 is the

    certified online copy of the Order dated 19.04.2022 passed in

    Crl.Misc.1066/2022. Ex.P.29 is the Certificate under Section

    65B of the Indian Evidence Act, 1872. Ex.P.30 and Ex.P.31

    are the Postal Receipts.

    16

    Com.OS.No.1073/2022

    9. In his examination-in chief, DW.1, reiterated the

    averments made in the written statement. Ex.D.1 is the copy

    of the charge sheet filed in Doddaballapura Police Station,

    Ex.D.1(a) is the copy of the statement of accused Mr.Sanu S.

    Nath in Crime No.68/2022, Ex.D.1(b) is the copy of the

    statement of accused Mrs.Pompi Das in Crime No.68/2022,

    Ex.D.1(c) is the copy of the statement of accused Mr.Montu

    Das in Crime No.68/2022, Ex.D.2 is the compliance affidavit

    filed by defendant No.1, Ex.D.3 is the copy of the GSTR-3B

    statement for the month of July 2021-2022,

    Re.issues No.1 to 4:

    10. It is not in dispute that the Defendant No.1 was in the

    employment of the Plaintiff-Company. During the course of

    his employment, the Defendant No.1 had executed an

    Employment Agreement and Code of Conduct, which have

    been marked and exhibited as Ex.P.11 and Ex.P.13

    respectively. A perusal of the recitals contained in the said

    Agreement and Code of Conduct makes it evident that any

    breach of the provisions thereof would constitute misconduct,

    and that the employer would be at liberty to take disciplinary
    17
    Com.OS.No.1073/2022

    action or to initiate appropriate legal proceedings against the

    employee, namely the Defendant No.1.

    11. Clause A of the said Agreement imposes an obligation

    on the defendant No.1 to maintain confidentiality, which is as

    follows:

    a) Confidentiality: You are expected to maintain
    utmost Confidentially with regard to the affairs of
    the company and shall keep confidential any
    information, whether written or oral ,which relates
    to internal controls, computer or data processing
    applications, routines, subroutines, techniques or
    systems, or information concerning the business or
    financial affairs and methods of operation or
    proposed transactions, security procedures, trade
    secrets, know-how, or inventions of the company or
    its Affiliate, or any client, agent, contractor or
    vendor during the tenure and also post
    employment.

    12. The Defendant No.1 has not disputed the said clause.

    Having voluntarily executed the Agreement, the Defendant

    No.1 was bound to adhere to the terms and conditions

    stipulated therein, unless such terms are found to be illegal
    18
    Com.OS.No.1073/2022

    or contrary to public policy. Sri M. Harish, the Senior

    General Manager of the Plaintiff-Company, in his evidence

    affidavit as P.W.1 has reiterated the case of the Plaintiff-

    Company that the Defendant No.1 has committed breach of

    the confidentiality clauses contained in the Agreement.

    Information, by its very nature, is a “fact” capable of being

    perceived by the senses and assimilated by the mind. In that

    view of the matter, the onus lies upon the Plaintiff-Company

    to establish, by cogent evidence, that the Defendant No.1

    acquired certain knowledge and information in the course of

    his employment with the Plaintiff-Company and that such

    knowledge or information was of a confidential nature.

    13. This Court has meticulously perused the evidence on

    record. The Plaintiff has nowhere disclosed as to what precise

    knowledge or information the Defendant No.1 acquired

    during the course of his employment, nor as to how the said

    information can be said to be confidential in nature. In

    paragraph No.9 of the plaint, the Plaintiff has asserted that it

    holds copyright in respect of the design, shape, drawing,

    specifications, components, materials and method of
    19
    Com.OS.No.1073/2022

    manufacture of cables. The Plaintiff-Company further claims

    that its products are unique and are not available with any

    other company. Having made such an assertion, it was

    incumbent upon the Plaintiff-Company to specifically narrate

    as to how its products are unique and as to how they differ

    from the products of other companies. However, the Plaintiff

    has not placed on record any material to demonstrate that it

    has obtained patent, design registration, copyright, etc., in

    respect of its products. Had the Plaintiff indeed possessed

    copyrights, it ought to have produced the same for the

    perusal of this Court. Since the Plaintiff has failed to produce

    any such proof, this Court is constrained to infer that the

    Plaintiff does not hold any such copyrights in its name. It

    may be true that during the course of his employment with

    the Plaintiff-Company, the Defendant No.1 might have

    acquired certain knowledge, skills, experience, etc., both on

    the administrative and technical side. However, all

    knowledge, expertise and skills acquired during employment

    do not ipso facto amount to confidential information. The

    term “confidentiality” in the present context connotes

    information, know-how, method, plan, data, etc., which is
    20
    Com.OS.No.1073/2022

    known exclusively to the Plaintiff and its employees and to no

    one else. The Plaintiff-Company has not placed before this

    Court any such secret information, data or plan. In the

    absence of placing on record the alleged confidential

    information, the Plaintiff cannot contend that the Defendant

    No.1 acquired confidential information during the course of

    his employment. In his cross-examination, P.W.1 has

    deposed as follows:

    “We have not taken any patent to manufacture of
    fiber reinforced plastic. I do not know whether the
    products of to company have been registered under
    Copyright Act. I do not know who is the right
    person in our company to say about the matters
    relating to patent and copy rights. I do not know the
    information with regard to manufacturing of FRP
    and OFC available in the you-tube. It is true to
    suggest that plenty of companies are
    manufacturing FRP and OFC all over India and in
    Karnataka”.

    14. Learned counsel for the defendant cited a decision of

    the Hon’ble Supreme Court, in the case of American

    Express Bank Ltd. Vs. Ms. Priya Puri,1 wherein the

    1 2006 (3) L.L.N.217
    21
    Com.OS.No.1073/2022

    Hon’ble Supreme Court, held that general skill, technical

    knowledge and the experience that an employee carries in his

    memory and acquires in the course of employment or his

    own, and their use after he leaves the company is not a

    breach. In the case of Wipro Ltd. Vs. Beckman Coulter

    International S.A.,2 the Hon’ble Delhi High Court held that,

    the routine day-to-day affairs of the employer within the

    knowledge of many and are commonly known are not trade

    secrets; a trade secret is a formula, technical know-how or

    peculiar method unknown to the others. The above extracted

    portion of the cross-examination of P.W.1 makes it manifestly

    clear that the Plaintiff-Company has failed to prove that it

    holds any copyrights or patents. Merely because the

    Defendant No.1 was an employee of the Plaintiff-Company

    and that he acquired some general knowledge and skill in the

    manufacture of OFC and FRP products, it is not possible to

    jump to the conclusion that the Plaintiff-Company had

    shared with him any confidential information and that he has

    misused the same.

    2 2006 SCC OnLine Del 743.

    22

    Com.OS.No.1073/2022

    15. The Plaintiff-Company has pleaded and its witness

    P.W.1 has stated in paragraph No.29 of his evidence affidavit

    that the Defendants, by making use of the proprietary

    information of the Plaintiff-Company acquired during the

    course of employment of the Defendant No.1, have

    approached the suppliers of the Plaintiff-Company for

    purchase of materials and have commenced manufacture by

    utilizing the alleged confidential data and trade secrets of the

    Plaintiff-Company. It is further alleged that the Defendants

    are supplying such products to competitor companies of the

    Plaintiff with an intent to make unlawful gains and to cause

    loss to the Plaintiff-Company. The Plaintiff has also furnished

    the names of such manufacturing companies in the said

    paragraph. However, in his cross-examination, P.W.1 has

    admitted the suggestion that raw materials required for the

    production of cables, OFC and FRP are readily available in

    Mumbai, China, Delhi and in Gulf Countries. From the said

    admission, it is manifest that the raw materials are available

    in the open market and are not exclusive to the Plaintiff-

    Company. In that view of the matter, information with respect

    to the suppliers of the Plaintiff-Company cannot, by any
    23
    Com.OS.No.1073/2022

    stretch, be termed as proprietary information or confidential

    information. Further, the Plaintiff-Company has failed to

    establish by any cogent evidence that it is the exclusive

    purchaser of raw materials from the companies mentioned in

    paragraph No.29 of the evidence affidavit of P.W.1. In the

    absence of such proof, the mere allegation that the

    Defendants approached the said suppliers does not, by itself,

    constitute misappropriation of confidential information or

    trade secrets.

    16. It is the specific allegation of the Plaintiff-Company that

    the Defendant No.1, in the guise of transporting materials

    from Unit No.2 to Unit No.3, has stolen materials worth

    Rs.25,60,000/-. Pursuant to the said allegation, the Plaintiff-

    Company lodged a complaint against the Defendant No.1

    alleging theft and misappropriation of materials. After

    investigation, the police have filed a ‘B’ Final Report in the

    matter. In his cross-examination, P.W.1 has stated that at

    the time of shifting materials from one unit to another, the

    Manager and the Store Keeper would ordinarily be

    responsible. The Company verifies inter-unit transactions
    24
    Com.OS.No.1073/2022

    once in every two to three months. At the gate of every unit, a

    Security Guard maintains a ledger regarding the ingress and

    egress of transporting vehicles. Similarly, the Store Keeper

    also maintains a ledger containing the particulars of

    materials received and dispatched. It is, however, pertinent

    to note that the Plaintiff-Company has not produced any

    such registers before this Court. Absolutely there is no

    positive or cogent evidence on record to draw an inference

    that the Defendant No.1 has committed theft of goods worth

    Rs.25,60,000/-. The Plaintiff-Company has made an attempt

    to demonstrate that the Defendant-Company, despite there

    being no production, has sold the products of the Plaintiff-

    Company and thereby earned wrongful gain. The act of theft,

    however, is a positive act and requires to be established by

    positive evidence. Had the alleged theft really taken place, the

    Plaintiff-Company ought to have produced the relevant

    ledgers maintained by the Store Keeper and the Security

    Guard. The Plaintiff-Company, having failed to prove the

    positive act of theft by adducing cogent evidence, is now

    attempting to demonstrate that the Defendants, without there

    being any production, have sold finished products. In the
    25
    Com.OS.No.1073/2022

    absence of any positive evidence from the Plaintiff’s side, this

    Court cannot embark upon an audit of the business affairs of

    the Defendant-Company nor can it presume theft on the

    basis of mere surmises and conjectures.

    17. The Defendant No.2 is the wife and the Defendant No.3

    is the father-in-law of the Defendant No.1. The Defendant

    Nos.2 and 3 are the promoters of the Defendant No.4

    Company. The Defendant No.1 is stated to be associated with

    the Defendant No.4 Company. However, he is neither a

    Director nor a Shareholder therein. The Defendant Nos.2 to 4

    have not actively participated in the present suit. Evidence

    has been adduced by the Defendant No.1 on his behalf and

    also on behalf of the other Defendants. From the prevailing

    circumstances, an inference arises that the Defendant No.1 is

    the person behind the promotion and incorporation of the

    Defendant No.4 Company. The Learned Counsel for the

    Defendants submits that even if it is presumed that the

    Defendant No.1 has promoted the Defendant No.4 Company

    by projecting the Defendant Nos.2 and 3 as promoters, such

    an act on the part of the Defendant No.1 would not result in
    26
    Com.OS.No.1073/2022

    any legal injury to the Plaintiff-Company. In support of his

    submission, the Learned Counsel has relied upon the

    following decisions:

    1. Niranjan Shankar Golikari Vs. Century
    Spinning & Mfg. Co. Ltd.,3

    2. Superintendence Company of India (P) Ltd.

    Vs. Krishan Murgai 4

    3. Percept D’ Mark (India) (P) Ltd. Vs. Zaheer
    Khan & Anr.5

    18. In the first decision the Hon’ble Supreme Court, held

    that negative covenants operative during the period of the

    contract of an employment when the employee is bound to

    serve his employer exclusively or generally not regarded as

    restraint of trade and therefore, do not fall under Section 27

    of the Contract Act. In the second decision, the Hon’ble

    Supreme Court, reiterated the decision of Hon’ble Culcutta

    High Court in Brahmaputra Tea company Limited Vs.

    Scarth6 and held that where the condition under which the

    covenantee was partially restrained from competing after the

    3 1967 SCC Online SC 72
    4 (1981) 2 SCC 246
    5 (2006) 4 SCC 227
    6 ILR (1985) 11 CIL 545
    27
    Com.OS.No.1073/2022

    term of his engagement with his former employer was held to

    be be banned but the condition by which he bound himself

    during the term of his agreement, not directly or indirectly, to

    compete with his employer was held good. Thus, it is clear

    that after termination of the contract the employee can

    compete with his ex-employer. In the third decision, the

    Hon’ble Supreme Court, held that under Section 27 of the

    Contract Act a restrictive covenant extending beyond the term

    of the contract is void and not enforceable. In the present

    case, the Defendant No.1 has ceased to be an employee of the

    Plaintiff-Company. Even assuming for the sake of argument

    that he has promoted the Defendant No.4 Company through

    the Defendant Nos.2 and 3, the covenant of non-compete

    contained in the Employment Agreement would not come into

    operation. It is a well settled principle of law that a person

    who seeks compensation for breach of contract is required to

    establish not only the civil wrong i.e., the breach committed

    by the defendant, but also the actual loss or damage suffered

    by him in terms of money. In the case of Kailash Nath

    Associates Vs. Delhi Development Authority,7 the Hon’ble

    7 (2015) 4 SCC 136
    28
    Com.OS.No.1073/2022

    Supreme Court, while interpreting Section 74 of the Contract

    Act, has held that compensation is payable for breach of

    contract only where damage or loss is caused by such

    breach. In the present case, absolutely there is no proof of

    the alleged breach by the Defendant No.1 of the Employment

    Agreement. The Plaintiff-Company has also failed to establish

    that it has suffered loss by the alleged breach.

    19. In view of the foregoing discussion and the material

    placed on record, this Court is of the considered opinion that

    the Plaintiff-Company has failed to establish any breach of

    confidentiality, misappropriation of trade secrets, or theft

    against the Defendant No.1. The raw materials being

    admittedly available in the open market, the information

    regarding suppliers cannot be treated as confidential or

    proprietary. Further, the alleged act of theft has not been

    substantiated by any cogent and positive evidence in the form

    of ledgers or other records which were mandatorily required

    to be maintained and produced. With respect to the covenant

    of non-compete, the Defendant No.1 having ceased to be an

    employee, and the Plaintiff-Company having failed to prove
    29
    Com.OS.No.1073/2022

    either the breach or the resultant loss in terms of money, no

    liability can be fastened on the Defendants in terms of

    Section 74 of the Contract Act as enunciated in Kailash

    Nath Associates Vs. Delhi Development Authority (Supra).

    Thus, the Plaintiff-Company has not made out a case for

    grant of any relief. Accordingly, the suit of the Plaintiff-

    Company is liable to be dismissed with costs.

    Issue No.5:-

    20. In view of the findings on aforesaid issues, the court

    proceed to pass the following:-

    ORDER

    The suit of the plaintiff is hereby dismissed
    with costs.

    Draw decree accordingly.

    The office is hereby directed to send a soft
    copy of this judgment to the parties to the
    proceedings to their respective e-mail IDs as
    required under Order XX Rule 1 of CPC and as
    amended under section 16 of the Commercial
    Courts Act, 2015.

    [Dictated to the Adalat AI Dictaphone Software, edited by stenographer, corrected and
    signed by me then pronounced in the Open Court, on this the 18th day of July, 2026]
    Digitally signed by
    JITHENDRANATH S
    JITHENDRANATH CHELUR
    S CHELUR Date: 2026.07.18 17:41:18
    +0530

    (JITHENDRANATH C.S.)
    LXXXVI Addl. City Civil & Sessions Judge,
    Bengaluru.

    30

    Com.OS.No.1073/2022

    ANNEXURE
    List of witnesses examined on behalf of the plaintiff:

    PW.1 M.Harish

    List of documents marked on behalf of the plaintiff:

    Ex.P.1 original Board Resolution dated 08.01.2024 as

    Ex.P.2 Copy of the Certificate of Fresh Incorporation

    Ex.P.3 Copy of the Certificate of Incorporation
    Ex.P.4 Certificate of Registration of Alteration of
    Objects
    Ex.P.5 Copy of the Articles of Association
    Ex.P.6 Copy of the Offer Letter
    Ex.P.7 Copy of the Trainee Supervisor Training Letter
    dated 02.11.2015
    Ex.P.8 Copy of the Appointment Letter dated
    05.11.2018
    Ex.P.9 Copy of the Confirmation Letter dated
    01.05.2017 confirming the appointment of the
    Defendant No.1 as Supervisor
    Ex.P.10 Copy of the Promotion Letter dated
    01.04.2018 promoting the Defendant No.1 as
    Engineer
    Ex.P.11 Copy of the Employment Agreement and Code
    of Conduct dated 01.04.2018 executed by the
    Defendant No.1
    Ex.P.12 Copy of the Promotion Letter dated
    01.10.2020 promoting the Defendant No.1 to
    the post of Manager
    Ex.P.13 Copy of the Employment Agreement and Code
    of Conduct dated 01.10.2020
    Ex.P.14 Copy of the Resignation Letter dated
    12.03.2022 tendered by the Defendant No.1
    Ex.P.15 Statement showing transfer of materials from
    Unit No.2 to Unit No.3
    Ex.P.16 Copy of Delivery Challan bearing No.095
    relating to transfer/delivery of materials
    Ex.P.17 Copy of the Certificate of Incorporation of
    31
    Com.OS.No.1073/2022

    ‘Adity Composite Private Limited
    Ex.P.18 Copy of the Memorandum of Association of
    ‘Adity Composite Private Limited’
    Ex.P.19 Copy of the Articles of Association of ‘Adity
    Composite Private Limited’
    Ex.P.20 Copy of the Company Master Data of ‘Adity
    Composite Private Limited’
    Ex.P.21 Copy of the employee details/nominee details
    of the Defendant No.1
    Ex.P.22 Copy of the Complaint Letter dated
    26.03.2022 lodged before Doddaballapura
    Police Station seeking registration of FIR
    against the Defendant No.1
    Ex.P.23 Copy of the FIR dated 29.03.2022
    Ex.P.24 Notice dated 09.12.2022 issued to Guru
    Krupa Consultancy Service
    Ex.P.25 Notice dated 09.12.2022 issued to Mukarji
    Enterprises
    Ex.P.26 Reply Notice dated 13.12.2022 issued by Guru
    Krupa Consultancy along with email and
    postal cover
    Ex.P.27 Employment Application and Bio-data
    submitted by the Defendant No.1
    Ex.P.28 Certified online copy of the Order dated
    19.04.2022 passed in Crl.Misc.1066/2022
    Ex.P.29 Certificate under Section 65B of the Indian
    Evidence Act, 1872
    Ex.P.30 & Postal Receipt
    Ex.P.31

    List of witnesses examined on behalf of the defendants:

    DW.1 Mr.Sanu S. Nath

    List of documents marked on behalf of the defendants:

    Ex.D.1 Copy of the charge sheet filed in Doddaballapura
    Police Station
    Ex.D.1(a) Copy of the statement of accused Mr.Sanu S.
    Nath in Crime No.68/2022
    Ex.D.1(b) Copy of the statement of accused Mrs.Pompi Das
    in Crime No.68/2022
    32
    Com.OS.No.1073/2022

    Ex.D.1(c) Copy of the statement of accused Mr.Montu Das
    in Crime No.68/2022
    Ex.D.2 Compliance affidavit filed by defendant No.1
    Ex.D.3 Copy of the GSTR-3B statement for the month of
    July 2021-2022

    Digitally signed by
    JITHENDRANATH S
    JITHENDRANATH CHELUR
    S CHELUR Date: 2026.07.18 17:41:29
    +0530

    (JITHENDRANATH C.S.)
    LXXXVI Addl. City Civil & Sessions Judge,
    Bengaluru.



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