'P' v. Mishra Dhatu Nigam Limited

Counsel forthe Appellant: Sri S. Ram Babu Counsel for the Respondent: Sri D' Raghavendar Rao The Court delivered the following: JUDGMENT /; THE HON'BLE THE CHIEF WSTICE AI.OK ARADHE AND THE HON'BLE SRI JT'STICE J.SREENTVAS RAO COMMERICAL COURT APPEAL No. 39 OF 2o24 JUDGMENT: (Per tLe Hon'ble Sri Justice J. Sreenivas Rao) This appeal has been hled by the appellant invoking the provisions of Ser--tion 13(1) of the Commercial Courts, Commercial Division and C)ommercial Appellate Division of High Courts Act, 20 l5 read $.rLh Section 37(l)(c) of the Arbitration and Conciliation Act, 1996 aggr cved by the order dated 14.O8.2024 passed by the Additional Spccial Court in the Cadre of District Judge for trial and disposal of Conrrnercial Disputes at Hyderabad (hereinafter relerred as 'the Commercial CourtJ in COP No.75 of 2023 whereunder the petition f Llecl b1' the appellant invoking provisions of Section 9 of .the the Arbitrarion and Conciliation Act, 1996 (hereinafter relerrcd as 'the Act') lt:,rs clismrssed.

2. He:rrci Sri S.Rambabu, learned counsel for the appellant and Sri D.RaghaverLdar Rao, learned counsel for the respondent, on admission.

3. Brief facts of the case:

3.I Facts grr..ing rise to filing of this writ appeal briefly stated are that on 28.04 2017 the appellant and respondent entered into 2 (1, contracts bearing numbers MDN/PUR/CG ISATOOO4 for phase I and MDN/PUR/CG/5870O0S for phase II for serting up a Single Stand Reversing 4-HI Wide Plate Hot Rolling Mill for Rolling of plates (Phase-I) and Sheae, Leveler, Roller flearth Furnace, Roller pressure Quench, Cooling Beds etc. and its Auxiliaries (phase_Il) at the premises of respondent at Hyderabad. On OS.O5.2O23 respondent floated the appellant's proprietary and confidential drawings, including drawings bearing numbers 8_82707 S.Z (Work Roll Assembly), 7.240753.5 (Work Roll-2 Sheets) and 6.342163.C (Work Roll Operating Conditions Data Sheet) (hereinafter collectively referred to as "Work Roll Drawings") in the open market for procurement of work rolls and other associated parts in tender bearing No.MDN/PUR /5a23OOOT IADVT lO79 123-24. On 12.07.2023, the appellant informed the respondent of rhe illegal use and disclosure of proprietary ald confidential information of the appellant, including the Work Roll Drawings, and breach of confidentiality and other contractual provisions by the respondent and reasserted its ownership in the intellectual properry rights vested in the Work Roll Drawings and caused serious loss to the appellant. In spite of the same, the respondent has been disclosing the confidential information to the third parties.

3.2 At that juncture, the appellant filed COp No.7S ot 2023 seeking for grant of injunction restraining the respondent, its 3 servants, agents and employees from any further disclosure or misuse or dissemination of proprietary and confidential information of the petitioner to any third party in any manner. The Commercial Court dismissed the above said application on 14.Og.2024. Thus, the appellant filed the present appeal. 4 Submissions of learned counsel for the appellant:

4.1 Learned counsel ior the appellant has submitted that as per the terms and conditions of the agreement, the respondent is not entitled to disclose rhe confidential drawings including Work Roll Drawings to third parties. However, contrary to the terms and conditions o[ t]rc agreement, the respondent has been disclosing the same to thrrrl parties In such circumstances, the Commercial Court ought to have granted injunction restraining the respondent from disclosir,g rhe confidential information including drawings to third parties. 5 Submissions of learned counsel for the respondent:

5.1 Per cont,.ct, learned counsel for the respondent submitted that as per clauses 17 IO.4, 34.1 and 34.2 of General Conditions of Contract, rhe rcspondcnt is entitled to use the drawings and designs for operation ,rnd mainrcnance of the project and also the respondent is cntitlccl to procure the spares and replacement of parts lrom :]ny compctent supplier/ manufacturer in India or Abroad 4 \ d by inviting tenders' conirdential drawings The respondent is not disclosing the pertaining to the appellant to the third parties. Learned counsel for the appellant by way of reply submitted 6. that the appellant is entitled to use the drawings for limited purpose i.e., for operation and maintenance of the project and to procure the spare parts, replacement of parts from any competent supplier/ manufacturer by inviting tenders and the appellant is not entitled to use the same to third parties' Analysis: 7 . We have considered the submissions made by the respecttve parties and perused the records' The specific claim o[ the appellant is that thc respondent contrary to the terms and conditions of [he agreement has been disclosing the confrdential drawings and other conhdential information to the third parties' The appellant {ited COP No.75 of 2Cl23 invoking the provisions of Section 9 of the Act seeking injunction restrainirrg the respondent from sharing the proprietary and conhdential information of the appellant through online platform or any other public forum' According to the learned counscl lor the respondent' the respondent is utilizing the confidential drawings only for the purpose of maintenancc of the project and also to procure the spares and replacement of the parts 5 by inviting te,clers and not disclosing the confidentiar information of the appellant to any third parties.

8. In view of the above said submissions made by the learned counsel for the respondent, the impugned order passed by the Commercial C ourt is set aside and the respondent is permitted to use the confidential drawings including Work Roll Drawings only for the purpose of operation and maintenance of the project and for procuring spares and repracement of parts by inviting the tender and the respondent is not entitled to use the same for any other purpose. It is needless to say that the respondent is hereby restrained from sharing the confidential drawings of the appellant to any third parties other than the above said purpose.

9. With tht: above directions, Commercial Court Appeal is disposed of. There shall be no order as to costs. Miscellaneous pctitions, iI an-v pending, shall stand closed //TRUE COPY// Sd/- M. VIJAYA BHASKER JOINT REGISTRAR To, sEcTtoN oFFICER 1. The Additionar speciar court in the cadre of District Judge for Trial and Disposal of commerciar Drsputes at Hyderabad, cily civir court. Hyderabad.

2. One CC to Sri S. Ram Babu, Advocate tOpUCI 9. 9n" CC to Sri D. Raghavendar Rao, Advocate [OeUCl 4. Two CD Copies u- Vk HIGH COURT DATED:03 t01t2025 JUDGMENT COMCA.N o.39 of 2024 J \ tFr''-- o k * { HES e 2 + ,rt*lt ffi 'i rrAr DISPOSING OF THE COMMERCIAL COURT APPEAL Gq(a w-- f"tttr i I t , , j