The Supreme Court has ordered a former employee of ATG Ceylon (Pvt.) Ltd. to pay Rs. 5 million in damages after finding that he unlawfully disclosed the company’s confidential manufacturing information and trade secrets to a South Korean glove manufacturer. 

In a judgment delivered on July 27, 2026, the Supreme Court overturned a 2019 Commercial High Court ruling that had dismissed the company’s case and instead entered judgment in favour of ATG Ceylon.  

The case was filed by ATG Ceylon, a Board of Investment company engaged in manufacturing industrial gloves, against a former process control technician who had worked for the company for more than 10 years. 

The company alleged that the employee transferred confidential manufacturing processes, proprietary technology and trade secrets relating to its “Maxi” range of gloves to a Korean competitor in exchange for financial gain. 

The Supreme Court held that the company had established, on a balance of probabilities, that the former employee entered into arrangements with the Korean company to transfer ATG’s confidential technological knowledge and manufacturing know-how. 

The Court also granted a permanent injunction preventing the former employee from disclosing or using ATG’s confidential information, trade secrets, proprietary technology and manufacturing processes, and declared that he remains under a continuing legal obligation to preserve the confidentiality of that information. 

While ATG had sought Rs. 200 million in damages, the Supreme Court awarded Rs. 5 million, noting that although the company’s actual losses were difficult to quantify, its prompt legal action had mitigated the potential damage caused by the attempted disclosure.

Court ruling : sc_chc_appeal_49_2019 (Newswire)

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