{"id":140933,"date":"2008-08-08T00:00:00","date_gmt":"2008-08-07T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/balaji-vs-aia-on-8-august-2008"},"modified":"2016-04-27T07:48:20","modified_gmt":"2016-04-27T02:18:20","slug":"balaji-vs-aia-on-8-august-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/balaji-vs-aia-on-8-august-2008","title":{"rendered":"Balaji vs Aia on 8 August, 2008"},"content":{"rendered":"
Gujarat High Court<\/div>\n
Balaji vs Aia on 8 August, 2008<\/div>\n
Author: Mohit S. D.H.Waghela,&Nbsp;<\/div>\n
   Gujarat High Court Case Information System \n\n  \n  \n    \n\n \n \n    \t      \n         \n\t    \n\t\t   Print\n\t\t\t\t          \n\n  \n\n\n\t \n\t \n\t \n\t \n\t \n\t\n\n\n \n\n\n\t \n\nLPA\/497\/2008\t 4\/ 4\tORDER \n \n \n\n\t\n\n \n\nIN\nTHE HIGH COURT OF GUJARAT AT AHMEDABAD\n \n\n \n\n\n \n\nLETTERS\nPATENT APPEAL No. 497 of 2008\n \n\nIn\n\n\n \n\nSPECIAL\nCIVIL APPLICATION No. 71 of 2008\n \n\nWith\n\n\n \n\nCIVIL\nAPPLICATION No. 5250 of 2008\n \n\nIn\nLETTERS PATENT APPEAL No. 497 of 2008\n \n\nWith\n\n\n \n\nLETTERS\nPATENT APPEAL No. 499 of 2008\n \n\nIn\nSPECIAL CIVIL APPLICATION No. 72 of 2008\n \n\nWith\n\n\n \n\nCIVIL\nAPPLICATION No. 5260 of 2008\n \n\nIn\nLETTERS PATENT APPEAL No. 499 of 2008\n \n\n \n=========================================\n\n\n \n\nBALAJI\nINDUSTRIES PRODUCTS LTD - Appellant(s)\n \n\nVersus\n \n\nAIA\nENGINEERING PVT LTD & 2 - Respondent(s)\n \n\n=========================================\n \nAppearance : \nMR\n ABHAY JAIN with MR. TEJAS TRIVEDI for MR YJ TRIVEDI for\nAppellants\/Applicants \nMR SANJAY A MEHTA for Respondent(s) :\n1, \nNOTICE SERVED BY DS for Respondent(s) : 2 -\n3. \n=========================================\n\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\nCORAM\n\t\t\t: \n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tTHE ACTING CHIEF JUSTICE MR. M.S.SHAH\n\t\t\n\t\n\t \n\t\t \n\t\t\t \n\n \n\n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nand\n\t\t\n\t\n\t \n\t\t \n\t\t\t \n\n \n\n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR.JUSTICE D.H.WAGHELA\n\t\t\n\t\n\n \n\n\t\t\t\t\tDate\n: 08\/08\/2008 \n\n \n\n \nORAL\nORDER<\/pre>\n
(Per
\n: HONOURABLE THE ACTING CHIEF JUSTICE MR. M.S.SHAH)<\/p>\n
\tThese
\nappeals under Clause 15 of the Letters Patent are directed against
\nthe common judgment and order dated 22nd February, 2008 of
\nthe learned Single Judge, dismissing the petitions, by which the
\nappellants herein had challenged the order dated 10th
\nDecember, 2007 of the City Civil Court at Ahmedabad, rejecting
\nApplications below  Exh. 124 and 126 filed by the applicants,
\npurporting to be  applications under Order 7, Rule 11 of the Civil
\nProcedure Code, in Civil Suit No. 3317 of 2001.\n<\/p>\n
2.\tRespondent
\nNo.1 has instituted Regular Civil Suit No. 3317 of 2001 before the
\nCity Civil Court at Ahmedabad, praying for the following reliefs:-\n<\/p>\n
?SA)\tThe Hon’ble
\nCourt be pleased to declare that the defendants Nos.1 & 3 have no
\nright of any nature whatsoever to use or disclose information like
\nsecret processes of manufacturing such as chemical formulae, designs,
\ndrawing, special methods of treatment and other information of high
\ndegree of confidentiality and such other trade secrets  acquired by
\nthem while in employment with the plaintiff company to either the
\nsecond defendant or any other person and\/or persons and be further
\npleased to restrain them by a permanent injunction from disclosing or
\nusing the aforesaid information in any manner whatsoever.\n<\/p>\n
B)\tThe Hon’ble Court
\nbe pleased to declare that the defendants and in particular,
\ndefendant No.2 have no right of any nature  whatsoever to
\nmanufacture, offer for sale or supply the following
\nproducts\/services.\n<\/p>\n
Griding
\n\tmedia for zinc ore grinding application of a wear rate  of 780
\n\tgms.\/tonne or lower.\n<\/p>\n
Duocast
\n\trollers (inserted rolls used in Vertical Grinding Mills).\n<\/p>\n
Airport
\n\tring assembly.\n<\/p>\n
Ball
\n\tsorting machine and associated services,<\/p>\n
and
\n\tbe further pleased to restrain the defendants, and in particular the
\n\tdefendant No.2 by  a permanent injunction from manufacturing,
\n\toffering for sale or supplying the aforesaid products\/services.??\n<\/p>\n
3.
\n The appellant herein filed the above numbered applications and
\ncontended that the  plaint did not disclose any cause of action, and
\nit was also contended that the trial Court had no territorial
\njurisdiction to try the suit against the present appellant ?
\ndefendant No.2 in the suit, because defendant No.2 is carrying on its
\nbusiness in the State of Rajasthan.  The trial Court  however,
\ndismissed the applications after holding that the plaint does
\ndisclose a cause of action, and that the trial court had jurisdiction
\nto try the suit against defendant No.2 also.\n<\/p>\n
4.\tThe
\nlearned Single Judge has confirmed the  above findings of the trial
\ncourt and held as under:-\n<\/p>\n
?S…..\n<\/p>\n
The crux of the matter is that
\naccording to the plaintiff, it was in possession of certain highly
\ntechnically refined process for manufacturing certain engineering
\nproducts.  Such acquisition  was made by the plaintiff through
\nacquiring the knowhow as well as by research and refinement in
\ndeveloping such products.  Defendant Nos.1 and 3   by misusing their
\naccess to sensitive and secret material of the plaintiff company
\npassed on the same to defendant No.2 and defendant No.2 on the basis
\nof such unauthorizedly acquired knowhow has been attempting to
\nproduce certain goods similar to that the plaintiff.??\n<\/p>\n
\tThe learned Single
\nJudge has also held in paragraph 17  as under:-\n<\/p>\n
?S17.\tComing to the
\nfacts of the present case, I find that the foundation of the
\nplaintiff’s case against defendant No.2 is that defendant No.2 in
\nconnivance with defendant Nos.1 & 3 had succeeded in leaking
\ntrade secrets of the plaintiff company. As already noted, it has been
\naverred that defendant Nos.1 & 3  had breached the
\nconfidentiality clause, misused the confidential information at their
\ncommand during the course of their employment and passed on sensitive
\ninformation to defendant No.2 to enable the said defendant to develop
\nthe products which were developed   by the plaintiff company by
\ncombination of acquisition of technical knowhow  from a foreign
\ncollaboration and refinement of technology through their own research
\nand development efforts.  It is the case of the plaintiff that some
\nof the technologies developed by it gives them an edge in the highly
\ntechnical field in manufacturing certain engineering products.  All
\nthese according to the plaintiff happened within the territorial
\njurisdiction of the court.\n<\/p>\n
\tFrom the above, it
\ncan be seen that the entire chain of events would reveal  that at
\nleast  a part of  cause of action  insofar as defendant No.2 is
\nconcerned also arose within the territorial jurisdiction of the City
\nCivil Court, Ahmedabad.??\n<\/p>\n
5.\tThe learned Single
\nJudge has held that in order to judge the application under Order 7
\nRule 11 of the Civil Procedure Code, one cannot go into the nature of
\ndefence that the defendants may put up, but has to confine the
\nenquiry about the averments made in the plaint by reading the plaint
\nas a whole and to find out whether it discloses any cause of action
\nor not.\n<\/p>\n
6.\tWe are in complete
\nagreement with the findings of the learned Single Judge that the
\nplaint does disclose a cause of action against all the defendants,
\nincluding the present appellant ?  defendant No.2 in the suit.  We
\nare also in agreement with the findings of the learned Single Judge
\nthat the entire chain of events reveals that at least a part of the
\ncause of action, in so far as defendant No.2 is concerned, also arose
\nwithin the territorial jurisdiction of the City Civil Court at
\nAhmedabad.\n<\/p>\n
7.\tThe appeals do not
\nraise any  question of law, which needs to be decided in these
\nLetters Patent Appeals.  We according, dismiss the appeals with a
\nclarification that the trial court shall hear and decide the suit on
\nmerits, without being influenced by the observations made by the
\nlearned Single Judge or by this Court.\n<\/p>\n
8.\tThe appeals are
\ndismissed.  Accordingly, Civil Applications also stand disposed of.\n<\/p>\n
\t\t\t\t\t\t(M.S. Shah,
\nActg. C.J.)<\/p>\n
\t\t\t\t\t\t(D.H. Waghela,
\nJ.)<\/p>\n
*\/Mohandas<\/p>\n
\t\t   \u00a0\u00a0\u00a0<\/p>\n
\t\t   Top<\/p>\n","protected":false},"excerpt":{"rendered":"
Gujarat High Court Balaji vs Aia on 8 August, 2008 Author: Mohit S. D.H.Waghela,&Nbsp; Gujarat High Court Case Information System Print LPA\/497\/2008 4\/ 4 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD LETTERS PATENT APPEAL No. 497 of 2008 In SPECIAL CIVIL APPLICATION No. 71 of 2008 With CIVIL APPLICATION No. 5250 of 2008 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16,8],"tags":[],"class_list":["post-140933","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"\nBalaji vs Aia on 8 August, 2008 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/balaji-vs-aia-on-8-august-2008\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Balaji vs Aia on 8 August, 2008 - 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