Kerry Ingredients India Pvt. Ltd vs Mr. Navanath Ambre & Ors.

Headnote AI-drafted · Reviewed and approved

The appellant-plaintiff, Kerry Ingredients India Pvt. Ltd., filed Special Civil Suit No. 38 of 2005 before the 19th Additional Senior Civil Judge, Vadodara, against its ex-employees (defendant Nos. 1 & 2) and associated parties, alleging breach of confidentiality and non-compete clauses contained in their employment agreements and misappropriation of trade secrets, client lists, and manufacturing process formulae. The plaintiff sought ex-parte interim injunction, appointment of a Court Commissioner, appointment of a Receiver, and disclosure by defendants, all of which were rejected by the trial Court by orders dated 24.02.2025 and 11.03.2025, with liberty to refile after service of summons upon defendants.

Aggrieved by the trial Court's refusal to grant ex-parte reliefs, the plaintiff preferred Appeals from Orders under Order 43 Rule 1(r) & (s) of the Code of Civil Procedure challenging the order refusing ex-parte interim injunction and ex-parte appointment of Receiver, as well as a writ application challenging the refusal to appoint a Court Commissioner and direct disclosure. The plaintiff contended that defendants, upon receiving notice, would destroy material evidence, particularly digital evidence gathered through a forensic investigation conducted in January 2025 revealing that defendants had transmitted sensitive proprietary information to their private email accounts during employment.

The High Court of Gujarat heard all the matters together and disposed of them by way of a common oral judgment, examining the correctness of the trial Court's approach in declining ex-parte reliefs and considering the balance of convenience, prima facie case, and irreparable injury, with particular reference to obligations under employment clauses relating to confidentiality, non-compete, conflict of duty, and post-termination restrictions.

Catchwords: ex-parte interim injunction · breach of confidentiality · non-compete clause · trade secrets · employment agreement · appointment of receiver · court commissioner · disclosure application · forensic investigation · misappropriation of proprietary information · Order 43 Rule 1 CPC · appeal from order · writ application · balance of convenience · irreparable injury