• Confidentiality and Non Compete Agreement

I was working with One MNC in chemical manufacturing sector. The Confidentiality and Non Compete Agreement was signed after one year of Joining the service. I was working with the company for 8 years as GM and handling operations.(Before joining this company i was working with similar company for 13 years). I left the job one rear back and started my own business . Now my MNC company has filed civil suit for permanent injunction.
Is it Valid as per Indian Low ?
Asked 7 years ago in Civil Law

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2 Answers

1. The non compete agreement is valid but only in rare circumstances.

2.Though generally such agreement s are void u/s27 of the indian Contract Act,the globalisation of trad and commerce ahs made courts to interpret such clause in terms of economic considerations only.

3.So only after going though the agreement I can advise better.

4.However oif it is found that there is difference your nature of job and your present business and clientele is also different then I do not thin the suit or injunction is maintainable.

Devajyoti Barman
Advocate, Kolkata
22920 Answers
498 Consultations

5.0 on 5.0

1) any agreement in restraint of trade is void under section 27 of indian contract act

2) you cannot be restrained from starting your own business after leaving the organisation

Ajay Sethi
Advocate, Mumbai
95205 Answers
7607 Consultations

5.0 on 5.0

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