Data Evolve Solutions told the Delhi High Court that KPMG conducted an “illegal visit” to its Hyderabad office and cloned the Digi Yatra app, deploying it in 28 airports despite the agreement allowing use at only four. The Court questioned whether new issues proposed by Data Evolve arise from the pleadings.
New Delhi: Data Evolve Solutions on Thursday told the Delhi High Court that KPMG had conducted an “illegal visit” to its Hyderabad office and cloned the Digi Yatra app. The company alleged that KPMG then deployed the application across 28 airports, even though the original agreement allowed use at only four airports.
The matter arose during arguments on whether additional issues should be added to the ongoing Digi Yatra ownership case between Data Evolve Solutions and Digi Yatra Foundation (DYF).
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The submission was made before Justice Subramonium Prasad, who questioned whether any of the six new issues proposed by Data Evolve actually came from the pleadings.
During the hearing, Data Evolve sought the inclusion of six further issues, arguing that certain factual matters—including the KPMG visit, deployment of the application, and the timeline of its development—should be part of the trial record.
Counsel for Data Evolve highlighted that the application was originally developed in 2020, prior to signing the Minimum Viable Agreement (MVA) with DYF.
The Court carefully examined each of the proposed issues and asked counsel to specify where the related claims appeared in the plaint.
Justice Prasad emphasized that issues can only be framed when they arise directly from the pleadings of both parties. Regarding Data Evolve’s references to outstanding payments, the Court clarified:
“Issues arise when there is an assertion in the plaint and denial in the written statement. Where does this come in the plaint? Otherwise, you file a counterclaim. Pay court fees and then go ahead with that.”
Justice Prasad observed that most of the new issues suggested by Data Evolve were either already covered by the issues framed on October 29 or did not arise from the plaint.
The Court granted DYF time to file its reply to the application for additional issues and listed the matter for further hearing on December 10. DYF has also moved a similar application seeking the framing of additional issues.
On October 29, the Delhi High Court had framed the following issues in the case:
- Whether DYF is the rightful owner of the Digi Yatra Central Ecosystem under the 2021 Minimum Viable Product Agreement;
- If so, whether DYF also holds intellectual property or other rights over the software and services created by Data Evolve;
- Whether Data Evolve infringed DYF’s rights; and
- Whether DYF, in turn, misused any intellectual property belonging to Data Evolve.
DYF, a Section 8 not-for-profit company formed under the Ministry of Civil Aviation’s Digi Yatra Policy, 2021, had selected Data Evolve Solutions through a startup challenge in May 2021. The parties executed the MVA on November 17, 2021.
DYF maintains that the MVA clearly vests all intellectual property in the Digi Yatra platform, including developed software, modifications, and derivative works, with DYF, while only pre-existing software owned by Data Evolve remains with the developer.
DYF began disengaging from Data Evolve after allegations surfaced in late 2023 about diversion of ₹36.53 crore in traffic fines by the promoter of the developer company.
DYF sought clarifications in November 2023, and, dissatisfied with the response, issued a disengagement letter in January 2024 directing Data Evolve to hand over the Digi Yatra Central Ecosystem, the Digi Yatra app, and all operational credentials.
Data Evolve, however, claims that DYF withheld payments and insists that it owns the intellectual property in Digi Yatra’s software architecture.
The company has also approached a Hyderabad court seeking protection of its claimed IP. In March 2024, DYF moved the Delhi High Court, which granted an ad-interim ex parte injunction restraining Data Evolve from using or copying any Digi Yatra passenger data.
Case Title:
Digi Yatra Foundation v. Data Evolve Solutions
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