The defendants are in appeal, challenging the grant of an order of temporary injunction restraining them from manufacturing or selling or in any manner dealing with any product similar or identical to a product of the plaintiff, respondent herein, known as Turbostop, a contoured impact pad which is used in steel plants to withstand the impact of molten steel that is poured into a vessel called Tundish, in casting and processing of steel. The contoured impact pad prevents the molten steel from perforating the tundish and enables the controlled containment and flow of steel.

2. The parties are referred to by their rank before the Trial Court for convenience.

3. The facts of the case as narrated by the parties are as follows. The plaintiff is a company incorporated under the Companies Act, 1956 and was established in the year 1958. It is engaged in the manufacture of specialty chemicals and allied products pertaining to Foundry and steel industry. It has its own research and development wing engaged in developing newer processes and innovative technologies. The pla1ntiff is part of the FOSECO Group of Companies, which carry a worldwide reputation. The group, including the plaintiff, holds patents for several products. One such product is “Turbostop” which is a specially designed and engineered “Contoured Impact Pad” (CIP). Till the invention of "Turbostop" the normal process in casting of steel was that molten steel would flow from a ladle and hit a flat impact pad kept at the bottom base of the vessel known as Tundish. The flow of steel after hitting the impact pad was not susceptible to control; this affected the time upto, which the molten steel could be retained in the Tundish. Unless the molten steel could be retained for an ideal time the non-metallic inclusions would not float and would not be capable of removal, resulting in poor quality steel With Turbostop this difficulty was overcome. It 1S a novel product developed after original research work over several years. The FOSECO group of companies have developed the capability to manufacture Turbostop to cater to the needs of any kind of steel plant. As the size and shape of Tundishes vary, the temperature of molten steel, casting speed and grades of steel depending upon the particular plant. This knowledge is available after extensive research. The design specifications and materials going into the manufacture are usually unique and not available in the public domain.

“Turbostop” was invented in the year 1990 and patent was granted in the United States of America. For newer versions, patent applications are said to be pending both in the USA and India. Turbostop was introduced in India in the year 1992.

Defendants 1 and 2 are ex-employees of the plaintiff Defendant 1 was employed as Senior Product Manager in the year 1988. He left the Company in the year 2002, opting for voluntary retirement. He was by then Group Product Manager. In the course employment he had access to confidential information pertaining to several products, including Turbostop. Even though he was engaged in marketing - he was possessed of detailed information of the products and had access to the data.

Defendant 2 joined the plaintiff in the year 1988 as Senior Product Engineer. He resigned voluntarily in May 2002. At that point of time he was Group Product Manager Tundish Products. He had worked as Market Development Manager of the plaintiff and had detailed knowledge and information about the products of the plaintiff, including Turbostop.

There was a contractual obligation on the part of defendants 1 and 2 not to make use of the confidential information acquired by them in the course of employment. They were also not to compete with the plaintiff in any of its businesses for a period of 5 years after cessation of their employment. Defendants 1 and 2 worked at Bangalore, where a branch of the plaintiff is situated.

Defendant 3, the Proprietor of Ravitejus Industries, was introduced by defend