The Delhi High Court has granted an ex parte ad-interim injunction in favour of Gem and Jewellery Information Centre restraining a former employee and associated entities from using or exploiting the plaintiffs’ confidential information, proprietary databases, trade secrets, and copyrighted material in a competing business.
The suit was filed alleging that the defendant, a long-time employee who had served the plaintiffs for nearly 25 years and risen to a senior managerial position, had misused confidential business data and trade secrets to establish a competing venture under the name “Business of Jewellery.” The plaintiffs contended that the defendant had access to critical proprietary information, including curated industry databases, exhibition formats, editorial content, and business strategies developed over decades.
It was further alleged that while still in employment, the defendant had initiated steps to launch a competing business, including applying for trademark registration, acquiring domain names, and creating a social media presence. The plaintiffs argued that the rapid launch of the competing magazine and exhibition shortly after resignation indicated use of their confidential data as a “springboard.”
The Court, on a prima facie assessment, found merit in the plaintiffs’ claims, noting the suspicious circumstances surrounding the defendant’s conduct, long association with the plaintiffs, and the likelihood of misuse of proprietary information. It held that the balance of convenience lay in favour of the plaintiffs and that irreparable harm would be caused if relief was not granted.
Accordingly, the Court restrained the defendants from using, reproducing, or disclosing any confidential or proprietary information belonging to the plaintiffs, including databases, trade secrets, editorial concepts, and business know-how. It also restrained them from imitating or deriving from the plaintiffs’ copyrighted works.
In addition, the Court appointed Local Commissioners to conduct search and seizure operations at the defendants’ premises, including securing physical documents and creating forensic copies of electronic data, to preserve evidence of alleged infringement.
The matter has been listed for further proceedings, with directions for filing of pleadings and compliance with procedural requirements.
Appearances :
For the Plaintiff(s): Mr. Neeraj K. Grover, Mr. Yatin Chadha, Mr. Mayank Chadha, Mr. Gurvinder Singh, Ms. Dolly Luthra and Mr. Ashna Singh, Advocates.
