Karnataka High Court Hears First Appeal Against Dismissal of Suit for Permanent Injunction and Damages in Software Development Contract. Suit Alleged Breach of Implied Contract by C-DAC Following Public Advertisement for Tamil Language Software Tools.

High Court: Karnataka High Court Bench: BENGALURU
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Case Note & Summary

The appellant, M/s. Applesoft, a software development firm, filed a suit seeking a permanent injunction against the respondents, the Centre for Development of Advanced Computing (C-DAC) and the Government of India, to restrain them from distributing Tamil language software Version 2 and to claim damages for breach of an implied contract. The dispute arose after C-DAC published an advertisement in 'The Hindu' on 27.06.2006, inviting proposals from the public for Indian language software tools, including Tamil. The appellant responded to this advertisement by submitting detailed proposals on 10.07.2006 and subsequently engaged with C-DAC officials who communicated about the evaluation of its software tools. The appellant alleged that despite complying with all requirements and fixing bugs as requested, its software tools were deliberately excluded from the final release of Version 2 during the World Classical Tamil Conference in June 2010, while C-DAC had pre-selected other entities even before the advertisement. The suit prayed for a permanent injunction against further distribution of the software, a declaration of the appellant's rights, discovery of documents, and compensation for financial loss and mental injury. The Trial Court dismissed the suit with costs of Rs.25,000 on 23.03.2019. Aggrieved, the appellant filed the present Regular First Appeal under Section 96 of the Code of Civil Procedure, 1908, which was heard and reserved for judgment by the High Court. The appellant contended that an implied contract came into force upon its compliance with the advertisement's terms and that C-DAC's failure to include its tools constituted a breach. The appeal sought to set aside the trial court's decree and grant the reliefs prayed for.

Issue of Consideration

KAHC010386382019_1

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Case Details

2025 LawText (KAR) (06) 41

Regular First Appeal No. 1340 of 2019 (INJ)

2025-06-02

Justice Hanchate Sanjeevkumar

2025:KHC:18573

S. Krishnamurthy (Appellant), Ashok G. V. (Respondents)

M/s. Applesoft and N. Anbarasan

Director General, Centre for Development of Advanced Computing (C-DAC); Director, C-DAC; Secretary to Government, Department of Information Technology

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Nature of Litigation

Appeal against dismissal of a suit seeking permanent injunction and damages for alleged breach of implied contract in software development.

Remedy Sought

Plaintiff sought permanent injunction restraining defendants from distributing Tamil language software Version 2, declaration of rights, discovery, and damages.

Filing Reason

Plaintiff alleged its software tools were excluded from C-DAC's free distribution of Tamil software despite compliance with advertisement requirements, causing financial loss and breach of implied contract.

Previous Decisions

Trial Court (XXIX Addl. City Civil Judge, Bengaluru) dismissed O.S. No. 8799/2012 with costs of Rs. 25,000 on 23.03.2019.

Judgment Excerpts

The entire premise of suit is pertaining to the law of contract. Therefore, an implied contract comes into force and could not be withdrawn or dropped by the defendants. The plaintiff has taken all steps in pursuance of that advertisement and all such steps were taken in furtherance of the public call of the defendants believing that it is so done in a bonafide manner to the response to the said advertisement.

Procedural History

The plaintiff filed O.S. No. 8799/2012 before the XXIX Additional City Civil Judge, Bengaluru City, which was dismissed on 23.03.2019 with costs of Rs. 25,000. The plaintiff then filed this Regular First Appeal under Section 96 of the Code of Civil Procedure, 1908, which was heard and reserved for judgment on 02.06.2025.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 96, Order XI Rule 1 to 22
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