Alleged Disclosure Of Confidential Information May Be Contractual Breach, But Not Defamation: Delhi High Court

The Delhi High Court has held that allegations of disclosure of confidential business information by an employee, even if assumed to be true, would at best constitute a breach of contractual obligations and not amount to defamation in the absence of any defamatory imputation made to third parties.Justice Neena Bansal Krishna dismissed an appeal filed by a book company, which had challenged the rejection of its suit seeking ₹10 lakh in damages for alleged defamation by a former employee. The trial court had rejected the plaint under Order VII Rule 11 CPC for failure to disclose a cause of action.One of the key allegations was that the employee had met representatives of competing companies and disclosed confidential information relating to the company's clientele and business practices.However, the High Court held,“...it pertains to an alleged breach of confidentiality and contractual obligations arising out of the employment relationship and such conduct does not, by itself, disclose any defamatory imputation. At best, it may give rise to contractual or employment-related claims, but does not disclose any defamatory imputation published to a third party so as to constitute a cause of action for defamation.”The company also claimed that the Respondent-employee had been contacting other employees and making defamatory statements against it.The Court however emphasised that these allegations were not supported by any particulars and the Plaint did not disclose what was communicated, to whom it was communicated, or in what context. “The plaint, fails to disclose the contents or substance of any such communication. Mere contact or communication with employees, in the absence of specific defamatory statements, does not constitute publication of a defamatory imputation to a third party,” the Court said.Thus finding that the pleadings were vague and lacked necessary particulars, the Court held that no cause of action for defamation arises.Appearance: Ms. Aishwarya Raj, Advocate for Appellant; Mr. Anshul Sharma, Advocate for RespondentCase title: Rohan Book Company Private Limited v. Sachin TyagiCase no.: RFA 847/2024Click here to read order

Alleged Disclosure Of Confidential Information May Be Contractual Breach, But Not Defamation: Delhi High Court

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