Delhi High Court Restrains Former JK Paper Employees From Using Company's Confidential Report

The Delhi High Court has temporarily restrained former employees of JK Paper Limited from using or employing the company's confidential and proprietary "Purta/Purtha" report after the company alleged that members of its IT department resigned together, took proprietary data belonging to it and later set up a new business.

Justice Anup Jairam Bhambhani observed that the forensic report relied upon by JK Paper would have to undergo scrutiny before it could be relied upon. Even so, the court held that the company had established a prima facie case for protecting the Purta/Purtha report until the next hearing.

"This court is satisfied that the plaintiff has made-out a prima facie case, and has also shown the balance of convenience in their favour and the likelihood of irreparable loss and injury in relation to the use by the defendants of Purta/Purtha report as referred to in para 42 to 53 of the plaint," the court held.

JK Paper has instituted a suit against five former employees and Intelvations LLP, alleging misuse of its confidential information and copyrighted material. The company has sought permanent and mandatory injunctions, delivery of confidential material, damages, rendition of accounts, and costs.

According to JK Paper, the five individuals worked in its IT department. They allegedly resigned en masse, taking with them proprietary data, software data and information belonging to the company. The company further alleged that they subsequently established Intelvations LLP.

Appearing for JK Paper, Senior Advocate Swathi Sukumar submitted that the former employees were contractually bound not to disclose the company's financial matters, manufacturing processes, technical know-how, security arrangements, or administrative and organisational matters to any third party during or after their employment. She further submitted that not all of them had returned company-owned electronic devices when they left.

The company also relied on a forensic exercise conducted by Grant Thornton Bharat LLP. According to JK Paper, the report concluded that the former employees had unlawfully retained proprietary and confidential information, exposing the company to harm and loss.

Based on these allegations, JK Paper sought interim relief restraining the former employees from infringing its copyrights in software systems, source codes, operational dashboards, reports, analytical frameworks, and databases.

It also sought directions for the return of confidential material and an order restraining them from operating any business or platform derived from the company's confidential information.

The court, however, observed that the forensic report could not be accepted at face value at this stage.

"The forensic report rendered by Grant Thornton Bharat LLP would require to be subjected to scrutiny and proof, including at the hands of the defendants, being an experts' opinion," the court observed.

The court nevertheless granted limited interim protection in respect of the Purta/Purtha report.

"The defendants are accordingly restrained from using or employing for any purpose the Purta/Purtha report, which is claimed to be proprietary and confidential in the hands of the plaintiff, till the next date of hearing," the court directed.

At the same time, the court clarified that the interim order would not prevent the former employees from using the knowledge and expertise they had gained during their employment.

"It is made clear however that the defendants shall not be barred from using or employing any skill, knowledge or technical expertise that they may have acquired in the course of their employment with the plaintiff," the court clarified.

The matter has been listed before the Joint Registrar on October 12, 2026, for completion of pleadings.