Hon'ble Madras High Court Elucidates The Difference Between Compensatory Damages And Restitutionary Damages

BRIEF FACTS OF THE DISPUTE:

In the recent case of 'E-merge Tech Global Services Pvt. Ltd. v. M.R. Vindhyasagar & Anr., the Hon'ble High Court of Madras ('Madras HC') has explained the circumstances under which an aggrieved party is entitled to ascertain compensatory damages and restitutionary damages, respectively.

In the instant case, E-merge Tech Global Services Pvt. Ltd.. i.e., the Plaintiff company ("Plaintiff") filed a Civil Suit against its former employee, i.e., M.R. Vindhyasagar ("Defendant") for violation of certain non-disclosure, non-compete and non-solicitation agreements, primarily by soliciting one of the major clients of the Plaintiff. Plaintiff consequently sought relief by way of damages to the tune of Rs.2,00,00,000 (Rupees Two Crore only) and for permanent injunction restraining the Defendants from divulging or exploiting the copyrighted material belonging to the Plaintiff and also restraining the Defendant from soliciting the clients of