The continuing authorized battle between insurance coverage tech corporations Acko Normal Insurance coverage and Onsurity Applied sciences over the previous’s allegations of knowledge theft and misuse has taken a brand new flip.
The Karnataka Excessive Court docket, on September 24, dismissed a petition which had been filed by Onsurity founders Yogesh Agarwal and Kulin Shah in search of the dismissal of the legal case towards them, and the quashing of the FIR. The duo’s authorized counsel argued that the fees within the FIR have been imprecise and {that a} civil case “was given a cloak of criminal conspiracy”.
However in its order, the courtroom famous that prima-facie, there was a case to be made towards Onsurity and its founders for stealing mental property and as such, there have been no grounds for dismissing the legal case.
“When it is specifically alleged that intellectual property has been stolen by petitioners and the same has been made use of for the purpose of their company ‘Onsurity Technologies Private Limited’, a fair investigation requires to be done in this behalf,” learn the courtroom’s order, including that with each legal and civil cures accessible for allegations which represent an offence, there was no motive to quash the legal proceedings.
In Might this yr, Amazon-backed insurance coverage tech startup Acko had alleged that its former worker Kulin Shah and former marketing consultant Yogesh Agarwal colluded and stole Acko’s confidential information to create competing companies — Onsurity Companies and Onsurity Applied sciences registered in Kolkata and Bengaluru respectively.
Subsequently, legal proceedings have been initiated towards Shah and Agarwal within the Karnataka Excessive Court docket, primarily based on an FIR filed by Acko. The insurance coverage tech firm additionally filed a civil go well with towards the Onsurity duo within the Bombay Excessive Court docket, the place it has demanded damages value INR 20 Cr from Shah and Agarwal.
On the latest order by the Karnataka Excessive Court docket, Onsurity founder Yogesh Agarwal stated, “We were trying to reduce our burden as two cases in two different courts and cities split our attention and energy from the business. However, we saw the wisdom in the honourable Judge’s suggestion so we agreed because we have nothing to hide. We have full confidence in our justice system and will wait for the court to rule before commenting.”
Agarwal additional alleged that Acko had been misrepresenting a number of information whereas underneath oath to the Bombay and Karnataka excessive courts. He added that these misrepresentations have been being leaked to the media in an try to defame Onsurity.
Queries to Acko concerning the newest excessive courtroom order have been unanswered until the time of publishing.
The Laptop computer That Strengthens Acko’s Case
Whereas listening to the case, the Bombay Excessive Court docket appointed advocate commissioners in three cities — Kolkata, Mumbai and Bengaluru — to examine Onsurity’s workplaces.
Inc42 has learnt from sources near the developments that throughout the inspection of Onsurity’s workplace in Bengaluru on June 27, the commissioner discovered a laptop computer with recordsdata/folders named ‘Acko’. A few of these recordsdata/paperwork bore the names of one of many defendants. Upon studying concerning the discovery of the laptop computer by investigators, the defendant is known to have urged the commissioner to miss the laptop computer and never submit it to the courtroom. The defendant’s solutions weren’t taken nicely by the commissioner, who issued a stern warning to him earlier than resuming operations. The commissioner seized laptops and different media units from the raid.
A reference to what occurred throughout the inspection of Onsurity’s workplace was additionally made by Acko’s authorized counsel in its arguments to the Karnataka Excessive Court docket. The counsel noticed that the inspection had been carried out by the commissioner with nice issue, and referred to as into query the behaviour of the co-accused throughout the inspection.
Acko’s FIR & Allegations
To supply some context, in an FIR dated Might 8, 2020, Varun Dua-founded Acko had accused Kulin Shah and Yogesh Agarwal, together with the latter’s relations, Bhagwati Prasad, Uma Agarwal and Sunita Poddar, of allegedly stealing Acko’s confidential information leading to damages to Acko Group to the tune of INR 20 Cr.
Earlier articles printed by Inc42 in June this yr captured the competing claims of each events to the case. Acko alleged that each Shah and Agarwal, as soon as key personnel for the corporate, had entry to crucial delicate information on technique, pricing, expertise and enterprise roadmap, amongst others. The duo was sure by a non-compete, non-solicit settlement, in addition to the privateness coverage of Acko, a supply near the event instructed Inc42 on the time. Acko additional alleged that its delicate data was utilized by Shah and Agarwal to arrange their new enterprise Onsurity, additionally within the insurance coverage tech house like Acko.
Onsurity Companies was registered with the Ministry of Company Affairs (MCA) in Might 2019. Nonetheless, each Shah and Agarwal’s names have been lacking from the corporate’s incorporation paperwork. As an alternative, the paperwork had the names of Yogesh Agarwal’s relations Bhagwati Prasad Agarwal and Uma Agarwal who have been listed as the administrators of the corporate.
Whereas Shah and Agarwal have been nonetheless employed with Acko, Onsurity had stepped up hiring for UI/UX designers. Months later, when Agarwal give up his consultancy position with Acko and switched full-time to Onsurity, his firm launched an Android utility on the Google Play Retailer in October 2019.
Onsurity Founder Refutes Fees
Whereas talking to Inc42 in June, Agarwal opened up on Acko’s allegations and provided his facet of the story.
He claimed that he had resigned from his full-time place with Acko in 2017 and had began paid engagements as a marketing consultant. Underneath his position, Agarwal was a part-time marketing consultant at Acko and was presupposed to work mounted hours each week underneath the consulting settlement, and therefore, he didn’t have a non-compete clause. His settlement was in impact from February 2018 to September 2019.
Agarwal emphasised that he had additionally been working with different common insurance coverage corporations, because the engagement with Acko wasn’t unique and the corporate was conscious of the identical.
Concerning the launch of Onsurity’s Android app, Agarwal instructed Inc42 that the product was a cell display safety plan, whose concept had been disclosed to Acko as nicely. Agarwal additional claimed that Acko had wished to collaborate with him on the identical, however the plan didn’t work out as a result of one of many events backing out.
Agarwal additional disclosed to Inc42 that he had began work on a brand new enterprise concept from November 2019, a healthcare wellness program for workers of small and medium enterprises (SMEs). For the proposed product, Agarwal was helped by Kulin Shah in getting conferences with potential buyers. In lots of such conferences, he was suggested to get a cofounder for his new enterprise. Agarwal approached Shah with the proposal and in March 2020, Shah joined Onsurity as a cofounder.
In February 2020, Agarwal arrange a brand new enterprise entity named ‘Onsurity Technologies’ by which he’s listed because the director. Later in April, as per a rare common assembly discover filed by the corporate, Kulin Shah was categorized as a promoter. Advertising and marketing collateral posted by Onsurity confirms that Kulin Shah and Yogesh Agarwal are founders within the firm.
Immediately, Onsurity, by way of its product TeamSure, claims to supply reasonably priced worker healthcare by way of group medical insurance coverage for SMEs and startups.
The truth that Onsurity can be engaged within the insurance coverage tech enterprise, backs claims made by Acko that its confidential data was stolen by the duo of Shah and Agarwal for industrial positive aspects.
Onsurity closed an INR 17 Cr funding spherical from Nexus Enterprise Companions, as indicated in MCA filings from March 20, 2020.
Additional, sources have instructed Inc42 that the allegations of knowledge theft made by Acko seem to have been substantiated within the inspection of Onsurity’s Bengaluru workplace by the Bombay Excessive Court docket-appointed advocate commissioner.
The Aftermath Of Acko Vs Onsurity
The Karnataka Excessive Court docket’s order implies that Onsurity’s founders will proceed to concurrently struggle a legal and civil go well with towards them in Karnataka and Mumbai respectively. The hearings for each circumstances have understandably been delayed because of the onset of the Covid-19 pandemic. The Bombay Excessive Court docket final heard the matter in July and the date for the subsequent listening to hasn’t been introduced but.
Sources instructed Inc42 that with Onsurity’s petition being dismissed by the Karnataka Excessive Court docket, it’s to be anticipated that the police would step up its investigation into the legal case towards the corporate.
In the meantime, Onsurity founder Agarwal expressed optimism concerning the Karnataka Excessive Court docket ruling.
“Yes, we made an appeal to the honourable court to quash the criminal proceedings as there was a civil suit already going on. The court though encouraged us to let it continue and let the investigation be completed so that once for all the issue is properly resolved to everyone’s satisfaction,” he stated, including that the ruling had set a plan of action that his firm was fortunately complying with.
