If you are stuck in such a situation, here is what to do.

Mr. Alok Verma found himself in a perplexing situation recently. He had worked as a Marketing Associate for a company named “Innovate Solutions Pvt. Ltd.” in Nagpur from May 2020 until he resigned in February 2023. Yesterday, he received a formal notice from the Mumbai High Court via email and WhatsApp, summoning him to appear before a specific bench on a future date. After some investigation, he discovered that his former company was being sued for trademark infringement by a rival firm, “Digital Horizons Inc.” The lawsuit was filed in May 2023, a full three months after Mr. Verma had left the company. The core issue revolved around a marketing campaign that was allegedly copied, a project launched long after his departure and one he had no involvement with. Understandably, he is now concerned about his legal obligations and potential liabilities.

Advice in such cases

• Do Not Ignore the Notice: Ignoring a court notice is the worst possible action. The court can proceed with the case in your absence (ex-parte) and pass an adverse order against you, which can create significant legal complications later.

• Gather Your Documents: Immediately locate and organize all documents related to your employment with the former company. This includes your appointment letter, employment contract, resignation letter, acceptance of resignation, and the final relieving letter. These documents are crucial to prove you were not employed with the company when the alleged infringement occurred.

• Contact Your Former Employer: Reach out to the HR or legal department of your former company. Inform them about the notice you received. They are the primary party in the lawsuit and should guide you on their legal strategy. They might even agree to represent you or indemnify you.

• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Applicable Sections of Law

In such civil matters, several laws come into play. Since this is a court notice for a civil suit, the procedure is governed by the Code of Civil Procedure, 1908 (CPC). The substantive law applicable to the dispute itself, in this case, would be the Trade Marks Act, 1999.

An important legal principle is that a company is a separate legal entity, and its employees are generally not personally liable for the company’s actions, especially when they were not directly involved or when the actions took place after their employment ended. Liability is typically attached to the directors or key managerial personnel who were responsible for the decision-making process. For an ex-employee to be held liable, the plaintiff would need to prove direct involvement or personal gain from the infringing act, which is difficult to establish for actions post-resignation.

If you are the complainant

• Identify the Correct Parties: As a complainant, it’s crucial to correctly identify and implead all responsible parties. This usually means the company itself and the directors or officers directly responsible for the infringement. Naming ex-employees without concrete evidence of their involvement can weaken your case and lead to applications for their deletion from the suit.

• Gather Strong Evidence: Before filing a suit, ensure you have robust evidence of the infringement and the parties responsible for it. This includes documentation, digital evidence, and communication records.

• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

If you are the victim

If you are the one who has been wrongly sent a notice for a corporate dispute after leaving your job, you are the victim in this context.

• Stay Calm and Act Methodically: Panic can lead to poor decisions. The notice is a procedural step, not a verdict of guilt. Your primary goal is to get your name removed from the lawsuit.

• Preserve All Evidence: Keep the notice, the envelope or email it came in, and all related communications safe. Do not delete anything. Also, gather your employment records immediately.

• Prepare a Factual Reply: With your lawyer’s help, you will need to file a reply or a written statement in court. This document will state the facts clearly: your period of employment, your date of resignation, and the fact that the cause of action (the infringement) arose after you left the company.

• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

How the police behave in such cases

In a civil matter like trademark or copyright infringement, the police have no direct role. The notice you received is from a court, not a police station. Police involvement would only occur if a criminal complaint was also filed alongside the civil suit, for instance, under provisions of the Bharatiya Nyaya Sanhita (BNS) for cheating or forgery. However, in a standard infringement case, the entire process is handled through civil courts. The police may only be involved if the court directs them to serve a summons or execute a warrant, which is rare in the initial stages of such a civil suit.

FAQs people normally have

Can I be held liable for something my company did after I left?
Generally, no. You cannot be held liable for acts committed by your former company after your employment has officially ended. Your relieving letter is strong evidence of the termination of your professional relationship.

What happens if I ignore a court notice?
The court will likely proceed “ex-parte,” meaning it will hear the case without your presence and can pass a judgment against you. This can lead to financial penalties or other legal restrictions, which will be very difficult to reverse later.

Do I have to travel to the city where the court is located?
Initially, your lawyer can appear on your behalf. You are not required to be physically present for every hearing. You may only need to appear if the court specifically orders your personal presence or for giving evidence, which would be at a much later stage.

Who pays for my legal fees?
You are responsible for your own legal fees initially. After hiring a lawyer, you can file an application in court to have your name struck from the list of defendants. If you are successful, you may be able to claim legal costs from the party that wrongly impleaded you. You can also check your old employment contract for any indemnification clauses.

What evidence is required?

To prove you are not liable, you will primarily need:

• The court notice you received.

• Your appointment letter detailing your role and responsibilities.

• Your resignation email or letter.

• The company’s acceptance of your resignation.

• Your relieving letter or experience certificate, which clearly states your last working day.

• Any evidence that the alleged infringement happened after your last working day.

How long will the investigation take?

This is a civil proceeding, not a police investigation. The process of getting your name removed from the lawsuit can be relatively swift if your evidence is clear. Your lawyer can file an application under the Code of Civil Procedure for the deletion of your name as a party to the suit. The court may decide on this application within a few hearings. The main lawsuit between the two companies, however, could continue for several years.

Advocate Sudhir Rao, Supreme Court of India