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LAXMAN PRASAD v. PRODIGY ELECTRONICS LTD

Laxman Prasad Vs Prodigy Electronics Ltd, (2008) 1 scc 618.

IN THE SUPREME COURT OF INDIA

Civil Appeal No. 5751 of 2007 (Arising out of Special Leave Petition (C) No. 12405 of 2006)
Decided On: 10.12.2007
Appellants: Laxman Prasad
Vs.
Respondent: Prodigy Electronics Ltd. and Anr.

JUDGMENT
C.K. Thakker, J.
Page 4573

1. Leave granted.

2. The present appeal is directed against the judgment and order passed by the High Court of Delhi on April 26, 2006 in I.A. No. 9562 of 2005 in Civil Suit (OS) No. 819 of 2005. By the said order, the High Court dismissed an application filed by the appellant herein under Order VII, Rules 10 and 11 of the Code of Civil Procedure, 1908 (hereafter referred to as ‘the Code’).

3. Shortly stated the facts are that ‘Prodigy Electronics Ltd.’-plaintiff (respondent No.1 herein) (‘the Company’ for short) was formed and incorporated under the laws of Hong Kong and is engaged in the business of trading electronic goods under the name and style ‘Prodigy Electronics’, Hong Kong. The main area of business of the Company is Printed Circuit Board (PCB). The business carried on by the Company involves keen understanding of the requirements of the customers in order that the products may be manufactured to the specific needs of the customers and they may be made available at competitive prices. The Company is, therefore, required to take care of the consumer- complaints, if any. It also involves a reach into the market identifying the potential consumers of the products which involves substantial investment of time, effort and finance. According to the Company, it has developed solid reputation in India under the trade name and trade mark ‘Prodigy Electronics’ in the field of electronics generally and PCBs particularly.

4. According to the plaintiff-Company, on July 22, 2002, the defendant (appellant herein) joined Prodigy Electronics in India as a representative for marketing PCB products of the Company in India. An employment contract Page 4574 was entered into on October 2, 2003 between the defendant-employee and the plaintiff-Company. Under the said contract, the defendant was given full-time employment in the Company at Hong Kong in the capa

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