IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
M.R. Shah, A.Y. Kogje, JJ.
Rapid Bevtech Pvt. Ltd. - Appellant
Vs.
KHS Machinery Pvt. Ltd. - Respondent
Appeal From Order No. 145 of 2018; Civil Application No. 1 of 2018
Decided On : 25-07-2018
Civil Procedure Code, 1908 - Order 43 Rule 1 - Commercial Courts Act - Section 13 - Maintenance and service - Appellants are the original defendants in the Commercial Trade Mark Suit filed by the respondents herein contending that the respondent plaintiff is engaged in the business of manufacturing and marketing of filling, packaging and processing machineries for beverage, food and non-food sectors and providing for maintenance and service for the same - Held, Plaintiff submit that the Defendant Nos.3 and 4 are ex-employees of the plaintiff and worked for long time with plaintiff, moreover, the defendants were in access to the confidential information such as drawing of machines, process of manufacturing low-cost productivity machines, researched products and installation process for machines of filling, packaging and processing of Beverages, water, food and non-food products of the plaintiff - Therefore, since the defendants are continuing their unlawful activities and misuse of copyright protected confidential information, software, patents, drawing, know-how or trade secret of the plaintiff, they are liable for breach or legal right and confidential information - Illegal use of properties of the plaintiff and with act of unfair competition results in irreparable loss and injury to the reputation of the plaintiff and thereby the defendants are liable for damages for their illegal acts which cannot be compensated in terms of money - Aforementioned pleadings coupled with the facts discussed hereinabove the issue of irreparable loss also is required to be answered in favour of the plaintiff - Accordingly, this Court for its own reasons would hold both these issues in favour the plaintiff - Application disposed of. (Paras 31, 32)
A.Y. Kogje, J.
This Appeal from Order is preferred under Section 13 of the Commercial Courts Act read with Order 43 Rule 1 of the Civil Procedure Code. This Appeal from order is filed challenging the order dated 09.03.2018 passed below Exhibits 6 and 7 of notice of motion in Commercial Trade Mark Civil Suit No.31/2017 by the Commercial Court, Ahmedabad.
2. The parties will be addressed as plaintiff and defendant for the sake of convenience.
3. The appellants are the original defendants in the Commercial Trade Mark Suit filed by the respondents herein contending that the respondent plaintiff is engaged in the business of manufacturing and marketing of filling, packaging and processing machineries for beverage, food and non-food sectors and providing for maintenance and service for the same. The Civil Suit was filed with the prayers as under :-
"(A) The Hon'ble court be pleased to grant an order and decree of permanent injunction restraining the defendants, their directors, partners, successors, servants, agents, dealers and distributors from using intellectual properties including but not limited to know-how, technical knowledge, customized manufacturing machinery as mentioned in ANNEXURE "A" and copyright protected customized computer software, database, drawings, process information and details, circuit diagrams, patent and other copyright protected materials and confidential information of the plaintiff.
(B) The Hon'ble court be pleased to declare that defendant have no right to use or disclose or divulge confidential information or secret process of manufacturing of machines as mentioned in ANNEXURE "A" and any other information of high degree of confidentiality and trade secrets of plaintiff to any other person.
(C) The defendants, their director, partner, successor, servants, agent, dealers, distributors be restrained by an order of permanent injunction from disclosing confidential information and any other information of high degree of confidentiality and trade secrets of the plaintiff."
4. The notice of motion was filed vide Exhibits 6 and 7 praying, inter-alia as under :-
"(A) The Hon'ble Court be pleased to grant an order of temporary injunction till disposal of suit restraining the defendants, their directors, partners, successors, servant, agent, dealers, and distributors from using intellectual properties including but not limited to knowhow, technical knowledge, customised manufacturing machinery mentioned in ANNEXURE "A" and copyright protected customised computer software, database, drawings, process information and details, circuit diagrams, patents, and other copyright protected materials and confidential information of the plaintiff.
(B) The Hon'ble Court be pleased to grant an adinterim order may be passed in terms of Prayer (A).
5. In the impugned order, the Commercial Court has restrained the defendants (appellants), i.e. the directors, partners, successors, servants, agents, dealers and distributors from using the confidential information/knowhow/technical knowledge, customized manufacturing machinery of the plaintiff. In the same order, it is also directed that the order of restrain is not to mean to preclude the defendants (appellants), who otherwise are free to carry on their profession by utilizing their own skill and information mentally retained by them, or by soliciting them independently. The impugned order further records directions to the parties to conclude the exercise of admission and denial of documents within a satisfied time.
6. The appellants original defendants aggrieved by the order passed below Exhibits 6 and 7 notice of motion in favour of the plaintiff seeks to challenge the same. The impugned order is challenged inter-alia, on the ground that the Commercial Court has no jurisdiction as the dispute raised in the complaint is not a commercial dispute and no cause of action exists. The Suit is barred by law of limitation and that there is no disclosure of any confidential information
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