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Corporate Law

Information which is otherwise available in public domain cannot be considered as confidential

Case Law Details

TaxGuru Citation
2016 taxguru.in 526
Case Name
M/s. Stellar Information Technology Private Ltd Vs. Mr Rakesh Kumar & Ors (Delhi High Court)
Date of Judgement/Order
Only available for paid members
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CA Saurabh Chokhra

Brief of the case:

  • The Hon’ble Delhi HC in the above cited case held that an employee cannot be restrained from competing with its former employer provided he/she is not using the confidential information of employer.
  • The information which is otherwise available in public domain cannot be considered as confidential information and no injunction restraining the use of such information can be issued.

Facts of the case:

  • The appellant (plaintiff) is a private company engaged in the business of Data Recovery. Defendant Nos. 1 to 3 (Rakesh Kumar & Others) are the former employees of the Plaintiff. The Plaintiff alleges that although Defendant nos. 5 to 7 are shown as the promoters/directors of Techchef, in fact, its business is carried on by Defendant nos. 1 to 3, who are in de facto control and management of Techchef (a company whose Directors are defendant No. 5 to 7).
  • It is further alleged that Techchef is also carrying on the same activities/business as is being carried on by the Plaintiff – that is, the business of providing services relating to data recovery, data migration and data erasure – and is directly competing with the Plaintiff.
  • It is the Plaintiff’s case that Defendant nos. 1 to 3 – by virtue of their employment with the Plaintiff – had access to Plaintiff’s confidential data, information, trade secrets and knowhow and they are now using the same for securing the business from the Plaintiff’s clients. According to the Plaintiff, the same is breach of the “Confidentiality and Invention Assignment Agreement” and “Employee Confidentiality Agreement” entered into by Defendant nos. 1 to 3 with the Plaintiff.
  • The plaintiff contended that the defendants are approaching to its customers which is in violation of “Confidentiality and Invention Assignment Agreement” and “Employee Confidentiality Agreement”. Therefore, it was pleaded by that Techchef should be restrained from approaching its customers of whose contact details defendant no. 1 to 3 have stolen.

Contention of the Appellant/Plaintiff:

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Author Info

CA Saurabh Chokhra
Qualification: CA in Job / Business
Location: Hyderabad, Telangana
Articles Published: 243

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