Shivani Gadhavi
Published On: January 28, 2022 at 17:56 IST
The Madras High Court on January 24, 2022 rejected a Plea of an Applicant seeking an Ad-Interim Injunction against the Respondents, in order to restrain them to conduct any business relating to Prepaid Instruments License (PPI License).
The Madras High Court Single Judge Bench of Justice N Anand Venkatesh was hearing a Petition filed by Amica Financial Technologies, who Alleged that they had signed a Binding Term Sheet with Respondents Number 1 and 2 respectively. Under the Binding Term Sheet, it was stated that the Respondents would provide updates to the Applicant regarding the deal.
The Applicant Alleged that after some time the Respondents informed the Applicant that the deal cannot take place. The Applicant then learned that Respondent Number 5 had supposedly acquired the Company of the Respondent Number 1 (which was to be done by the Applicant).
The Applicant Alleged that Respondents Number 1 and 2 were Breaching the Binding Term Sheet by providing the Trade Secrets between the Applicant and them to Respondent number 5.
In this regard, the Applicant sought relief in the form of Injunction that would restrain Respondents Number 1 and 2 to do business with anyone. The Applicant also sought Compensation in the form payment for the Damages incurred by them.
The Bench in light of all the facts stated, “To claim such a protection Applicant must, at least Prima Facie, establish through some material that such information was communicated or imparted to the 1st and 2nd Respondents. The Applicant must also, Prima Facie, establish that the information in question is Confidential in nature.”
The Respondents in this regard filed a Counter Affidavit Alleging that the Applicant’s suit is not maintainable as no Trade Secrets were ever shared by the Applicant to them. The Respondents argued that the Applicant did not Prima Facie have a Case to claim against the Respondents.
The Applicant in order to prove the existence of the Trade Secrets and Prima Facie Case, demanded constitution of a Confidentiality Club within which the secrets mentioned in the Binding Term Sheet would be revealed.
The Court dismissed the Plea of the Applicant and stated that “This Court has carefully examined the Pleadings and the documents relied upon by the Applicant and is not able to satisfy itself that the Applicant has established the fundamental requirements for the grant of an Ad-Interim Injunction.”
Also read: Trade Secrets and its Protection
