Bombay High Court
J.K. Shah Education Pvt. Ltd vs Ednovate Education Pvt. Ltd. And 9 ... on 5 May, 2021
Bench: R. I. Chagla
8-IAL-10740-21.doc
Sharayu Khot
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
INTERIM APPLICATION (L) NO. 10740 OF 2021
IN
COMM. EXECUTION APPLICATION (L) NO. 10379 OF 2021
J.K. Shah Education Private Limited ...Applicant
In the matter of
J.K. Shah Education Private Limited ...Plaintiff/ Decree-
holder/ Judgment
Creditor
Versus
Ednovate Education Private Limited & ...Defendants/
Ors. Judgment-Debtors
And
Mrs. Geeta Surendra Shah & Ors. ...Proposed
Respondents
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Mr. Janak Dwarkadas, Senior Counsel and Mr. Navroz Seervai,
Senior Counsel a/w Mr. Ankit Lohia, Mr. Varun Nathani, Mr.
Ranjit Shetty, Mr. Rahul Dev i/by Argus Partners for the
Applicant/Plaintiff/ Decree Holder/ Judgment Creditor.
Mr. Shyam Mehta, Senior Counsel with Mr. Alankar Kirpekar,
Mr. Shekhar Bhagat i/by MAG Legal for the Defendants/
Judgment Debtors.
Mr. Soli Cooper, Senior Advocate a/w Mr. Yohann Cooper and
Mr. Gourav Mohanty i/by Shardul Amarchand Mangaldas for
the Proposed Respondent No. 3.
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8-IAL-10740-21.doc
CORAM : R.I. CHAGLA J.
DATE : 5th May, 2021
(V.C.)
ORDER :
1. Heard learned Senior Counsel for the parties.
2. The learned Senior Counsel appearing for the
Applicant submits that there have been a series of breaches to
the Consent Terms dated 6th November 2020 committed by
the Defendants/Judgment-Debtors by which Consent Terms,
the Suit stood decreed.
3. At this stage, the learned Senior Counsel presses for
prayer clause J of the present Interim Application taken out in
the Execution Application seeking execution of the decree.
Prayer clause J reads thus:-
"J. Pass a prohibitory order and injunction restraining
and prohibiting Defendant Nos. 1 to 10 (directly
and/or indirectly) from admitting students into
coaching classes, tutorial classes held face to face,
digital or online, conducted by the Defendants by
8-IAL-10740-21.doc
themselves and/or any of them through Defendant
No.1 Company or through any other Company, Firm or
entity and / or any of the other Defendants, jointly or
severally, for a period upto 5th November 2022."
4. The learned Senior Counsel has submitted that in
the event of breach of the said Consent Terms by the
Defendants, there is an injunction/prohibition against the
Defendants from carrying on any business competing with the
Applicant's business activity for a period of two years from the
date of the Consent Terms i.e. till 5th November 2022. The
Defendants are also jointly and severally liable to pay amounts
in excess of Rs. 10 Crores to the Applicant. The learned Senior
Counsel further submitted that in respect of certain
confidential material the parties had agreed that in the event of
the Suit being decreed, such material could not be used by the
Defendants. He submits that the Defendants have after the Suit
being decreed continued to use the confidential material of the
Applicant. Further the Defendants are admitting students into
their coaching classes and tutorial classes which are either
conducted face to face or on digital or online platform. The
Defendants have been using this confidential material without
8-IAL-10740-21.doc
disclosing to their students the proceedings before this Court
including the Interim Application taken out in the execution
proceedings. These coaching classes and tutorial classes are
competing with the Applicant's business despite the Defendants
having breached the Consent Terms. This has thus, been to the
detriment of the Applicant apart from being in
disobedience/breach of the decree. He has accordingly,
submitted that there is urgency and accordingly, has pressed
for prayer clause J of the Interim Application.
5. Learned Senior Counsel appearing for the
Defendants/Judgment-Debtors has submitted that the Consent
Terms had been entered into on 6th November 2020 between
the Applicant and the Defendants. The Contempt Petition had
been filed in February 2021 by the Applicant contending that
Defendants had committed breaches of the Consent Terms by
which the Suit was decreed. He has submitted that similar
relief had been sought in the Contempt Petition as sought in the
present Interim Application. He submits that the Contempt
Petition was dismissed on 16th February 2021 and from which
an Appeal was preferred. On 17th March 2021, the Appeal
8-IAL-10740-21.doc
came to be disposed of with liberty to file a separate
application. He has submitted that there is no extreme urgency
in passing any ad-interim relief considering that only matters
of utmost urgency can be heard in view of the Covid-19
pandemic. He has further submitted that the Defendants/
Judgment-Debtors require to file a reply to the Interim
Application for which time is sought.
6. The learned Senior Counsel for the Defendants has
further submitted that the Defendants are running the
business of coaching classes, tutorial classes and have been
admitting the students from March 2021 on regular basis and
this is as per the said Consent Terms entered into between the
parties. Hence, no ad-interim relief requires to be granted in
terms of prayer clause J of the Interim Application as sought
for by the Applicant.
7. Having considered the submissions, it would be
appropriate to grant time to the Defendants/Judgment-Debtors
for filing the Affidavit in Reply to the Interim Application.
Further considering that there is no real urgency in hearing
8-IAL-10740-21.doc
the Interim Application without awaiting a Reply from the
Respondents. The Consent Terms was entered on 6th
November 2020 in respect of which breaches have been alleged
by the Applicant and for which it is stated that a Contempt
Petition had been filed in February 2021 and which was
dismissed on 16th February 2021. It has further been stated
that an Appeal was preferred from the order dated 16th
February 2021 which had been disposed of by an order dated
17th March 2021 granting liberty to the Applicant to file a
separate application. The Interim Application thus, requires to
be heard on merits by granting any opportunity to the
Defendants to file their Affidavit in Reply. The Interim
Application can be considered immediately after the term
resuming after the Summer vacation. Hence, the following
order:-
(i) The Defendants shall file Affidavit in Reply on or
before 27th May 2021 with copy to other side.
(ii) The Applicant shall file Affidavit in Rejoinder on or
before 3rd June 2021 with copy to other side.
8-IAL-10740-21.doc
(iii) The present Interim Application is adjourned to 10th
June 2021 for ad-interim relief.
(iv) Needless to state that all rights and contentions of the
parties are kept open.
8. At this stage, learned Senior Advocate appearing for
the proposed Respondent No. 3 submits that the wrong party
has been joined as proposed Respondent No. 3 in the
Application. The party who should have been joined as
proposed Respondent No. 3 is Facebook incorporated which is a
U.S. Company. He submits that appropriate particulars of the
company shall be provided to the Applicant within one week
from the date of this order. He also seeks liberty to take out
appropriate application for removal of the proposed
Respondent No. 3 as party to the Interim Application. Liberty
is granted to the proposed Respondent No. 3 to take out this
Application within a period of two weeks from the date of this
order.
9. Stand over to 10th June 2021.
[R.I. CHAGLA J.]
