HIGH COURT OF DELHI : NEW DELHI
HONBLE MR. JUSTICE MANMOHAN SINGH, J.
M/s. Action Construction Equipment ….Plaintiff
Versus
M/s. Gulati Industrial Fabric P. Ltd. ..... Defendant
IA No.10073/2006 in CS (OS) No.1740/2006
Decided on : 13th April, 2009
MANMOHAN SINGH, J.
1. The plaintiff has filed the instant suit for permanent injunction and misuse of confidential information.
2. Alongwith the suit, the Plaintiff has also filed an application under Order 39 Rule 1 and 2 read with Section 151 CPC.
3. An ex parte ad-interim order was passed against the defendant on 11.09.2006 in IA No. 10073/2006.
4. The case of the plaintiff company has been in existence for more than a decade. It started manufacturing Mobile Tower Cranes and other infrastructure construction equipment and is a major supplier of products to a number of reputed companies in the Private as well as Government Sector, to name a few CCL, Ranchi, WCl, Nagpur, SECL, Bilaspur, Punjab State Electricity Board, Rajasthan State Electricity Board, NHPC, NTPC, Railways, BSES, Delhi Jal Board, MCD and Defence etc. in the public sector and Reliance, ACC, Punj Lyod Limited, Gammon India Limited. etc. in the Private Sector.
5. The Plaintiff Company has also been exporting cranes to U.A.E, Saudi Arabia, Qatar, Bahrain, Kuwait, South Africa, Kenya, Nigeria, Mozambique, Ethopia, Algeria, Libya, Mouritious, Madagascar, Sri Lanka, Nepal, Bangladesh, Bhutan, Malaysia, Singapore, New Zealand, Kazakhstan Portugal and many other countries.
6. For the last 10 years, the Company is operating on independent basis for manufacturing six models of Hydraulics Mobile Cranes, Front End Loader and Mobiles Cranes Handler of capacities ranging from 5 tons to 20 tons and for last eight years manufacturing 2 models of Tower cranes. The Company provides complete range of Pick-N-Move cranes suiting to the core sector of Indian Industry.
7. The Plaintiff company is the leading manufacturer of the Hydraulic Mobile Cranes & Tower Cranes in India. The Plaintiff Company has already supplied over 4000 cranes of different models as on date. The products have also been endorsed and certified to be quality products by the Ministry of Defense, SAIL, Engineers India Limited., Department of Atomic Energy for the purposes of competing its tenders.
8. The Plaintiff has achieved a net turnover of Rs.200 crore for the period ending 31st March, 2006. The net-worth of the Company Was Rs.3914 lacs as on 31st March 2006. The Balance sheets of the Plaintiff Company for last five years are being filed along with the plaint.
9. As per Plaintiff, when the company was incorporated in 1995, R&D (Research Development) Team was constituted. They started developing and designing the cranes. This involved extensive use of labour and money on the part of the company and thereafter the successful type and design of Mobile Tower Cranes was developed. This was done by the Company?s design Engineers, who were involved in R&D (Research Development) Team of the Plaintiff. 10. The Tower Cranes have two models depending on lifting capacity and not limited to the models marketed as “MTC2418, MTC3625” etc. 11. Sometime in 1997, the defendant approached the Plaintiff for the supply of the fabricated components of the Tower crane.
12. The plaintiffs gave the industrial drawings of the key components of Tower Cranes to the Defendants for exclusively manufacturing and specifically supplying the manufactured key components to the Plaintiffs Only. The Drawing stipulated as under :-
“This drawing is the property of “Action Constructions Equipments (P) Ltd.”
It is furnished to you for development purposes only and is to be returned to ACE upon request. Unauthorised use of the drawing and duplicating or making product as per our drawing without our permission or any other misuse is not permitted.”
13. It was thus agreed between the parties that the defendants would maintain confidentiality and secrecy of the Plaintiff?s industrial drawings of Tower Cranes and use them only for the purpose of manufacturing of the components specifically for the plaintiff company only.
14. The key components are in the nature of (1) Pyramid 2) Winch Housing Stripped (3) Weight Box Assy. (4) Base Frame/Chassis f
Burlington Home v. Rajnish Chibber 61 (1995) DLT 6: 1995(35) DRJ 335
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