Tortious Interference — Business Relations — Injunction
Order XXXIX Rules 1 & 2 CPC
Unlawful interference with contractual and business relations by communicating misleading or incorrect information to clients and potential clients of a competitor can constitute tortious interference warranting interim restraint.
[Paras 2, 10–18, 22]
Defamation — Commercial Reputation — Interim Protection
Circulation of communications suggesting subsisting injunctions, infringement or legal disability against a business entity, when such issues are sub judice or disputed, may prima facie affect goodwill and reputation and justify interim directions to prevent further damage.
[Paras 10–16, 22]
Competing Businesses — Limits of Legitimate Competition
While parties are entitled to protect and promote their business interests, they cannot indulge in negative marketing, false propaganda or communications calculated to dislodge an established competitor by inducing fear or uncertainty among its clients.
[Paras 10–18, 21–22]
Pending Intellectual Property Litigation — Misuse of Court Orders
Court orders passed in one proceeding cannot be selectively or misleadingly projected to third parties to suggest final adjudication or automatic application against entities not expressly bound by such orders.
[Paras 9–14, 20–22]
Interim Relief — Balancing of Equities
At the interlocutory stage, the Court may mould relief to maintain commercial fairness by restraining parties from conveying personal views and limiting communications strictly to reproduction of court orders.
[Para 22]
Damages — Proof at Trial
Claim for damages arising out of tortious interference and defamation must be established by evidence during trial; interim stage is confined to preventing further prejudice.
[Para 23]
II. ANALYSIS OF LAW
A. Tortious Interference in Commercial Context
The Court recognises that direct communications to a rival’s clients, particularly suggesting illegality, injunctions, or infringement, can cross the line from legitimate competition into tortious interference if such communications are misleading or designed to disrupt existing business relationships (Paras 10–18).
B. Defamation of Business Reputation
The order treats commercial goodwill and reputation as protectable interests. Statements implying subsisting court restraints or legal risk, if not accurately stated, are capable of causing reputational harm even without final adjudication on merits (Paras 10–16).
C. Use and Misuse of Pending Litigation
A key legal concern addressed is the misrepresentation of pending court proceedings. The Court cautions against portraying interim or disputed orders as conclusive findings, especially when the scope of such orders vis-à-vis a party is itself contested (Paras 9–14, 20–22).
D. Controlled Interim Remedy
Instead of granting a blanket injunction, the Court adopts a balanced and proportionate approach:
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restraining parties from expressing personal or subjective views;
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permitting only factual communication of court orders;
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directing corrective communication to recipients of earlier letters.
This approach preserves fairness without prejudging merits (Para 22).
III. ANALYSIS OF FACTS (AS FOUND)
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Plaintiff Perpetuuiti Technosoft Service Pvt. Ltd. alleged loss of business and reputation due to defendants’ communications to its clients (Paras 2–5, 10–18).
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Defendants Sanovi Technologies (India) Pvt. Ltd. relied upon a pending copyright suit and interim orders therein (Paras 7–9, 20).
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Communications to clients such as IBM suggested that injunction orders operated against the plaintiff (Paras 12–14).
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Plaintiff disputed such portrayal and alleged loss of contracts and goodwill (Paras 15–18).
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Issues relating to infringement and impleadment were still pending adjudication (Paras 20–22).
IV. FINAL DIRECTIONS / OPERATIVE PART
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Parties restrained from communicating personal views to clients or third parties.
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Defendants directed to circulate only copies of court orders to recipients of earlier communications.
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Compliance affidavit directed.
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Claim for damages left open to be proved at trial.
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Application disposed of with protective interim directions.
[Paras 22–23]
Ratio (Concise)
In commercial rivalry, dissemination of disputed or misleading legal positions to a competitor’s clients may amount to tortious interference and reputational harm; courts may impose calibrated interim restraints limiting communications strictly to factual court orders pending trial.
