Delhi HC restrains rival co from using Lumax’s confidential info

The Delhi High Court has restrained Fiem Industries from using rival Lumax Industries’ confidential and proprietary information, data and trade secrets after the latter alleged its former employees, now employees of Fiem, of stealing email ids of its independent directors, joint venture partners, customers, suppliers and channel partners.

While asking Lumax Industries’ former employees to disclose all confidential and proprietary information taken from their former employer, Justice C Hari Shankar also appointed two local commissioners to visit Fiem’s premises to take copies of the hard disks of computers, servers, cloud storage and preserve them confidentially. The court asked the commissioners to preserve the data taken from Lumax Industries’ former employees’ devices.

“The allegations in the plaint are serious and deserve to be examined,” the high court said, while issuing notice to Fiem Industries and others.

The HC also said that the facts of the case “disclose, prima facie, misuse of confidential information” by the defendants – former Lumax Group CEO and its director – who resigned from the company in April and June, respectively.

“Apart from the inherently illegal nature of such activities, they are also, prima facie, violative of the Confidential Code of Conduct and the IT Policy of the plaintiff… Refusal of injunction, at this stage, itself can result in rampant misuse of the confidential information of the plaintiff resulting in irreparable prejudice. The balance of convenience would also, therefore, be in favour of grant of ex parte ad interim injunction,” Justice Shankar noted in its order.

Both Lumax Industries and Fiem Industries manufacture automotive lighting solutions, etc for two-wheeler and four-wheeler commercial vehicles.