Data Theft Becoming A Menace Of Digital Age, Must Be Nipped In The Bud: Karnataka High Court
Title: Naveen Kumar R @ Naveen & ANR And State of Karnataka.
Case No: CRIMINAL PETITION NO. 3173 OF 2023
Date of Order: 12-07-2023
CORAM: HON’BLE JUSTICE M NAGAPRASANNA
INTRODUCTION
The Karnataka High Court recently remarked that the act of stealing data has become a significant problem in the digital era and needs to be curbed.
FACTS OF THE CASE
The complainant company alleged that the petitioners violated a non-disclosure agreement and stole essential client data from the company. They used this information in their rival company named Conscala. Consequently, the complainant company filed civil proceedings seeking an injunction against the use of the stolen data. The court granted a temporary injunction in favor of the complainant.
Prior to filing the civil case, the complainant also lodged a complaint with the police, stating that the data belonging to their company had been stolen by the petitioners and others. The police registered a crime for the mentioned offenses. However, an interim order from the court prevented the investigation against the petitioners from being conducted.
The petitioners’ counsel argued that there is no substantial evidence to support the allegations of offenses under Sections 408, 504, 506 of the IPC, or even under Section 66 or 66C of the Information Technology Act.
COURT ANALYSIS
The court while refusing to quash the proceedings initiated against two persons accused of having stolen client data from their previous employer and misusing it by joining a rival company. The court said after going through the records the case is shrouded with seriously disputed questions of fact and therefore, it would not be prudent to quash the proceedings at this stage. It held “The allegation against the petitioners is that they have been thieving all the data belonging to the clients of the complainant/Company and using it for the purpose of development of business of the rival Company, and have therefore, violated the non-disclosure agreement of the Company, which would become an offence as alleged for the aforesaid offences.
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Written by- Shreya Sharma