POLYMER PAPERS LIMITED Vs. GURMIT SINGH

JUDGEMENT

(1.) M/s.Polymer Papers Limited has filed the present suit for permanent and mandatory injunction through Plaintiff No.2, Sh.Dhruv Puri against the Defendants. Along with the plaint the Plaintiffs have also moved an application under Order XXXIX Rules 1 & 2 CODE OF CIVIL PROCEDURE, 1908 for interim injunction. By this order I propose to dispose of the said application. Before discussing the rival contentions of the parties, it would be important to give a brief summery of facts. Plaintiff No.1 is a company engaged in the manufacture of wide range of filter papers, chemicals and filters used for various purposes such as locomotives, defence equipment, automotive and industrial applications. The Plaintiff company has various divisions including an engineering division. Defendant No.1, Sh.Gurmit Singh has been working in the capacity of Managing Director of the Plaintiff company since its inception. Defendants No.2 and 3, Sh.Digvijay Singh and Sh.Anoop Singh are the sons of Defendant No.1. Defendant No.2 has been working in the capacity of Vice-President (Operations) and also in charge of engineering and component division, whereas Defendant No.3 has been working as Manager (Sales). Defendants No.4 to 10 are the employees of the company and have been working in various capacities in the engineering division of the Plaintiff company. The engineering division has been manufacturing its own designed filter manufacturing and testing machines. The Plaintiff company has invested substantial amounts in the development and know-how of skill, knowledge, technique and mechanism. On the basis of its know-how, its engineering division has launched its own concepts and drawings of the various filter manufacturing and testing machines. It is claimed that the industrial drawings and manufacturing process, names of suppliers and certain parts used in the machinery constitute the trade secrets of the Plaintiff company. The Plaintiff company also claims to be the exclusive owner of the artistic works consisting of the industrial drawings, shape and get up of the machines and thereby claim the exclusive right to reproduce or depict in two and three dimensions, the machinery and the key components.

(2.) The Plaintiffs' allegations are that Defendants No.1 to 3 have conspired with Defendants No.4 to 10, to hijack the business of the engineering division and in order to take away the know-how of the Plaintiff company photocopied the drawings and designs and the customers and suppliers lists etc. Defendants No.2,4,5,6,8, & 10 submitted their letters of resignation before Defendant No.1, who unilaterally and without consultation with the other Directors accepted their resignation letters and paid them dues in full and final settlement. The Plaintiff's further case is that by accepting the resignation of the aforesaid Defendants and taking away the copies of the industrial drawings and lists of Plaintiffs' customers and suppliers, etc. they have practically closed the engineering division of the company. The paralysing of the engineering division has caused tremendous set back to the functioning of the other divisions of the company as they all are dependent on the engineering division. The company is alleged to have suffered heavy losses on account of the paralysing of the engineering division as the company is unable to meet its commitments. The further allegations are that apart from the industrial drawings, etc. the Defendants have also removed other technical material and have established independent business, on parallel lines in Delhi and Gurgaon. It is alleged that the aforesaid industrial/engineering drawings or designs, etc. are exclusive property of the Plaintiff company and the Defendants with a view to unauthorizedly, illegally and commercially exploit the works and property of the Plaintiff company have made photocopies and in certain cases taken the original designs and drawings from the premises of the Plaintiff company.

(3.) On these allegations the Plaintiffs have sought the following reliefs:-