How Can I Legally Stop an Ex-Employee from Using Stolen Data to Compete?

Legal Action Against Employee for Data Theft

An employee has absconded from the company and attempted to steal data, successfully doing so. The employee now plans to establish a company offering the same services as their previous employer, utilizing the stolen data in this new organization.

Under what circumstances can litigation be initiated against this employee? I have knowledge of criminal proceedings in this matter, but I am interested in pursuing civil action. I am considering a Temporary Injunction, but I would appreciate a more detailed explanation.

Please assist me with information regarding injunctions and provide relevant citations.

Thank you.

Regards,
Lovedeep S. Sodhi
Law Officer
Punjab & Haryana High Court

Additional Questions from an HR Standpoint

You should have raised this query at citelegal.com and not on this forum. In addition to the valid points that Mr. Nathrao has brought out, I would like to ask a few more questions. His points were from the legal side. Let me ask you a few questions from the HR standpoint. These are as follows:

- When did you discover the theft of the data? Was this discovery after the employee's exit from your company or before?

- How many days/weeks have passed since he has left your company?

- On the discovery of the theft of data, did your company order an investigation? Do you have evidence to prove that he was the custodian of the data? If he was the custodian of the data, then did you obtain from him any undertaking for protecting the breach of data?

- If the investigation has been completed, then on the strength of findings, why did your company not lodge an FIR against this employee? Theft of employment and abandonment of employment both go together. Did you order additional inquiry for the abandonment of employment?

- Theft is a crime; even then, why do you wish to take it as a civil case and not a criminal case?

- Apart from bringing an injunction order from the court, did you send a lawyer's notice to the employee's ex-employer stating not to enter into a contract with him since this business contract would depend on the digital assets that are stolen from your company?

It appears that you had relied too much on this person. Data breach is more of a systemic failure. Therefore, at least now, you need to take precautionary measures and institute additional layers of security.

Thanks,

Dinesh Divekar

Dear Dinesh ji,

I wanted to appreciate your post for asking very relevant and valid questions to the queriest. Since I find no option in your post to appreciate, it compelled me to appreciate you in words. Since I am compelled to write here under the circumstances stated above, I would like to say further as under: The queriest is a new member on this forum. My intention is not to discourage him from writing. He is a Law Officer in the High Court - Pb. & Haryana. He will be an asset to this forum if he actively participates in the discussions. The queries up until now that he raised in this forum, it seems we have no answers.

Regards