Civil court restrains Welspun from using confidential designs of boxes

Mumbai: The city civil court granted an ad interim injunction to Lily Packers that had sought restraining orders against Welspun India and Welspun USA from using designs of corrugated boxes designed and conceptualized by Lily Packers. Lily Packers had provided the design of the boxes under a confidentiality agreement to Welspun for packing towels that were to be supplied to COSTCO a leading wholesale outlet in the USA. However, as Welspun had breached the agreement and given the designs of the corrugated boxes to competitors of Lily Packers, the aggrieved packaging company approached the court.

According to the suit filed by Lily Packers, they had received an email from Welspun in May 2017 asking them to design corrugated boxes for a consignment of towels for COSTCO. Lily had agreed to undertake the assignment after receiving assurances from Welspun that Lily would get the contract for making the corrugated boxes once the designs were approved. Welspun also assured that they would not be sharing the Powerpoint Presentation prepared by Lily with anyone. The suit further mentioned that over a period of time, they made changes to the design as required by Welspun and COSTCO before it was approved and finalised.

The suit then mentions that after the approval Welspun stopped responding to inquiry calls, emails and whatsapp messages by Lily and in the first week of October, Lily came to know that the designs were with three of their competitors who had modified the designs and were trying to pass them off as their own and also bagged the manufacturing order for the corrugated boxes. In light of these contentions Lily sought an interim injunction restraining Welspun and the three competitors from using the designs and using them in any way as it would result in financial losses to them. Lily also sought appointment of a commissioner to probe their allegations.

After hearing the contentions of the suit the court passed an exparte order in the absence of Welspun. The assistant judge Bharti Kale in the order said, “In this circumstance, it appear to me that the ad-interim injunction as prayed is granted. It is also submitted that on 10.10.2017 the defendant (Welspun) are going to shuft out the articles and therefore there is urgency.” It further restrained Welspun from supplying any material to COSTCO in relation to which packaging was sought to be taken for which Lily provided the PPT presentations. The order also restrained Welspun and the competitors of Lily from in any manner using applying, transferring, disclosing, disseminating the confidential information shared by the plaintiff (Lily) with any third person. The court however refused to appoint commissioner.