JSA Advocates and Solicitors (JSA) successfully represented M/s. Eveready Industries India Limited (Company) before the Hon'ble High Court of Telangana, securing a stay of all proceedings in relation to criminal proceedings initiated against the Company before the Hon'ble IV Additional Junior Civil Judge-cum-XVI Additional Judicial Magistrate of First Class at Khusaiguda, Medchal–Malkajgiri (Criminal Court) by M/s. Skyquad Electronics and Appliances Private Limited (Respondent).
The dispute arose from a second complaint filed by the Respondent before the Criminal Court under Section 406, 408, 410, 411, 424, 379, 381, 120B, 34 of the Indian Penal Code and Section 66, 66-B, 72, 72A of the Information Technology Act, 2008, alleging common intention to steal trade secrets, poach employees, and misappropriate intellectual property, engaging in industrial espionage, fraudulent activities and theft to establish a competing business by stolen property; thereby allegedly causing wrongful loss to the Respondent and wrongful gain to the Company and other accused ("Complaint"). The Criminal Court issued summons to the Company and other accused and directed the parties to file counter.
In respect of the first complaint, which was founded on the very same allegations, the Station House Officer closed the complaint for want of evidence. Aggrieved thereby, the Respondent preferred a Protest Petition against the Final Report; however, the same was dismissed by the learned Magistrate on the ground that there was no evidence to substantiate the allegations and that the Respondent had failed to produce any witnesses in support thereof.
Thereafter, the Respondent preferred a Criminal Revision Case before the Hon'ble High Court of Telangana challenging the dismissal of the Protest Petition. In the said Criminal Revision Case, the Respondent filed an interim application seeking adjudication of the Criminal Revision Case without the participation of the Company and the other accused, contending that they were not necessary parties. The said application was dismissed by the Hon'ble High Court of Telangana. Subsequently, the Respondent withdrew the Criminal Revision Case and proceeded to file the present second complaint.
In the present Criminal Petition seeking quashing of the second Complaint, the Company contends that: (i) the Respondent's Complaint, being a second Complaint founded on the same allegations, is frivolous and amounts to an abuse of the process of Court; (ii) the learned Magistrate had earlier considered the Respondent's allegations in the Protest Petition and dismissed the same on the ground of "Lack of Evidence". The Company cannot be subjected to the hardship of defending a Complaint based on the same allegations for a second time, particularly when the present Complaint has been filed merely to harass the Company; and (iii) the Respondent's past litigation clearly establishes that the present Complaint is an abuse of the process of Court. Therefore, the Criminal Court ought not to have taken cognizance of the same and directed the filing of a counter without examining the Complaint and the Respondent's previous proceedings.
In view of the above, the Hon'ble High Court of Telangana stayed all proceedings in relation to the Complaint pending before the Criminal Court against the Company, considering the same to be an abuse of the process of Court.
The JSA team was led by Harshavardhan Abburi, Partner, with Poojitha Babbepalli, Principal Associate; Pooja Gandhi, Associate; Manoj Bhukya, Associate, Phanindranath Chowdary Ponneganti, Associate, and Sakshi Kabra, Junior Associate advising on the matter.