1. Facts of the Case
Mr. X, an employee at a BPO (Business Process Outsourcing) company, had access to sensitive business information, including client databases, contact details, and service agreements. He deliberately disclosed this data to an outsider, who is in the same line of business, with the intention of diverting the BPO’s clients to that outsider’s company. This act caused business loss to Mr. X’s employer and was done without authorization.
The employer later discovered the data leak and filed a complaint, alleging breach of trust, confidentiality, and cyber law violations.
2. Issues in the Case [Questions]
- Does Mr. X’s disclosure of client data constitute an offence under Indian cyber law or criminal law?
- Is intentional data leakage for competitive advantage punishable?
- Can this be treated as breach of trust, data theft, or misuse of confidential information?
- What are the civil and criminal liabilities of Mr. X?
3. Legal Principles Covered
A. Information Technology Act, 2000
- Section 43 – Penalty and compensation for damage to computer, computer system, etc.
Covers unauthorized access, downloading, copying, or extracting data.
→ Mr. X copied/extracted company data without authorization. - Section 72 – Breach of confidentiality and privacy
If a person, in the course of exercising powers under the Act or accessing information due to employment, discloses information without consent, it is punishable.
Punishment: Imprisonment up to 2 years, or fine up to ₹1 lakh, or both. - Section 66 – Computer-related offences
When actions under Section 43 are done dishonestly or fraudulently.
Punishment: Imprisonment up to 3 years, or fine up to ₹5 lakh, or both.
B. Indian Penal Code, 1860
- Section 408 IPC – Criminal breach of trust by clerk or servant
Mr. X, being an employee (a clerk/servant in legal terms), misused company property (client data) for personal gain.
Punishment: Imprisonment up to 7 years, and fine. - Section 405 IPC – Criminal breach of trust
Dishonest misappropriation of property entrusted in the course of employment. - Section 420 IPC – Cheating and dishonestly inducing delivery of property
If any act induced the clients or employer to suffer loss based on deception.
C. Employment and Contract Law
- Breach of employment contract and non-disclosure/confidentiality agreement, if applicable, can lead to termination, civil suit for damages, and injunctions.
4. Possible Judgement
Based on the above facts and laws, Mr. X is criminally liable under:
- Section 72 and Section 66 of the Information Technology Act, for unauthorized disclosure and fraudulent misuse of digital data.
- Section 408 IPC, for criminal breach of trust by an employee.
- Possible action under contract law for breach of confidentiality agreements.
The court may rule:
- Conviction under IT Act and IPC provisions.
- Imprisonment up to 3–7 years, depending on the gravity of harm caused.
- Fine and/or compensation to the BPO company.
- Injunctions preventing Mr. X from contacting or soliciting the clients again.
- Recommendation for disciplinary action, including termination of employment.
