Court Orders Former Employee to Pay Rs. 1 Lakh for Early Resignation

In the case of M/S PCM Worldwide Flights Pvt. Ltd. v. Mr. Manish Bhoriya, the Court of Civil Judge-03 at Tis Hazari Courts, Delhi, presided over by Sh. Kautuk Bhardwaj, DJS, delivered a judgment on 21 August 2024. The plaintiff, PCM Worldwide Flights Pvt. Ltd., sought a permanent injunction and the recovery of Rs. 1,00,000/- from the defendant, Mr. Manish Bhoriya, for allegedly breaching a training agreement and misusing confidential company information.

The plaintiff’s case was based on an employment contract and a training agreement signed by the defendant, which mandated a minimum service period of two years. The plaintiff claimed that the defendant had resigned before completing this period and was therefore liable to pay Rs. 1,00,000/- as stipulated in the agreement. Additionally, the plaintiff averred that the defendant was leaking confidential information after leaving the company.

Despite being duly served, the defendant did not appear in court, leading to ex-parte proceedings. The court accepted the plaintiff’s evidence, which included documents such as the training agreement, the defendant’s resignation letter, and related communications. The court concluded that the defendant had indeed breached the terms of the agreement by resigning early and was liable for the claimed amount of Rs. 1,00,000/-.

However, regarding the permanent injunction to prevent the defendant from using the company’s confidential information, the court found the plaintiff’s evidence insufficient. The court noted that while the plaintiff claimed the defendant had leaked information, no concrete evidence was provided to support this assertion. Therefore, the court denied the request for an injunction.

On the issue of interest, the plaintiff had requested pendent-lite and future interest at 18% per annum. The court, considering the circumstances and the nature of the agreement, found this rate to be exorbitant and declined to award any interest. The court emphasized that the discretion to award interest must be exercised equitably, especially when the defendant had already completed a significant portion of the contractual period.

Ultimately, the court decreed the suit in favor of the plaintiff, awarding the recovery of Rs. 1,00,000/- without interest and also awarded the costs of the suit.

Citation: M/S PCM Worldwide Flights Pvt. Ltd. v. Mr. Manish Bhoriya, Suit No. 842/2023, CNR No. DLWT03-001679-2023 (Civ. J.-03, Tis Hazari, Delhi Aug. 21, 2024). Available at: [http://indiankanoon.org/doc/91393253/](http://indiankanoon.org/doc/91393253/), Visited on: 25/08/2024.

Authored by BananaIP Reporter

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The case note in this blog post has been written by IP Attorneys at BananaIP Counsels based on their review and understanding of the Judgment. It may be noted that other attorneys and experts in the field may have different opinions about the case or arrive at different conclusions therefrom. It is advisable to read the Judgment before making any decisions based on the case note.

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