Court Allows Extraordinary Search to Protect Confidential Information

Summary

As an important step towards protecting confidential information, the Delhi High Court allowed Ventum Dynamics Limited, a company specialising in wind-turbine technology, to have a Court-appointed Commissioner search the premises and electronic devices of a former consultant. The order permits on-site technical inspection to identify, copy, and preserve confidential data, making this an extraordinary relief in Indian litigation over confidential information.

Background

In this case, Ventum Dynamics Limited (“Plaintiff”), a company specialising in wind turbine technology, filed an application against Nishan Jain (“Defendant”), a former consultant of Ventum’s predecessor entity. The suit primarily concerns the protection and possible misuse of Ventum’s confidential and proprietary information following a change in corporate structure and concerns about former associates establishing a competing business.

Facts

Ventum’s predecessor became bankrupt on 24 January 2025. Following the bankruptcy, Ventum Dynamics Limited was incorporated on 1 April 2025 and acquired all rights, including intellectual property, of its predecessor. While most prior agreements stood terminated, a Non-Disclosure Agreement (“NDA”) dated 9 June 2021 between the predecessor and the Defendant continued to bind him for five years from the date of termination.

Ventum alleged that in late May 2025, it became aware that certain former employees and ex-directors of its predecessor were attempting to set up a competing business, and it apprehended that the Defendant might misuse or disclose its confidential information, proprietary data, documents, and copyrighted works. This led to the filing of a suit for protection of confidential information, along with an application for appointment of a Local Commissioner to inspect the Defendant’s premises and devices.

Court’s Findings and Order

The High Court appointed Mr. Uday Bhatia as the Local Commissioner with the following powers to:

• • • Enter and search the Defendant’s premises with representatives of Ventum, its counsel, and technical experts.
    • Access all computers, drives, USB devices, hard disks, cloud storage, and other media for Ventum’s proprietary information.
    • Document and make copies of any confidential data found, including material recently deleted.
    • Require the Defendant’s full cooperation.
    • Seek police assistance if needed.

The Court directed that the commission be executed preferably within two weeks, with the Commissioner’s report due within two weeks thereafter. The Commissioner’s fixed fee of ₹1,50,000, along with travel, lodging, and other expenses, would be borne by the Plaintiff. The order was not to be uploaded for two weeks from its date to preserve the integrity of the search.

The case is next listed for completion of service and pleadings on 26^th August, 2025, and before the Court on 24^th September, 2025.

Remarks

While the appointment of Local Commissioners is not uncommon in IP enforcement, allowing such inspection to detect and preserve confidential information, with technical experts accessing and copying data from personal devices, is an extraordinary step. This order grants strong interim measures, even in the absence of registered IP rights.

Citation: Ventum Dynamics Limited vs Nishan Jain, Delhi High Court, dated 2^nd July, 2025, Justice Amit Bansal, CS(COMM) 624/2025 available at: https://indiankanoon.org/doc/125253567/ (last accessed on 13th August, 2025)

Article Review: Dr. Kalyan C Kankanala
Accessibility Review: Ms. Benita Alphonsa Basil