Under provisions of section 27 of contract act Any agreement in restraint of trade is void

2) you are at liberty to join competitor

3) your joining any employer after resignation would not amount to breach of contract as in india any agreement in restraint of trade is void

4) the Bombay High Court held that a restraint operating after termination of the contract to secure freedom from competition from a person who no longer worked within the contract, was void. The court refused to enforce the negative covenant and held that, even if such a covenant was valid under German law, it could not be enforced in India. (Taprogge Gesellschaft MBH v. IAEC India Ltd., AIR 1988 Bom 157)

Hello,

If you have signed a non compete clause then usually you should not join any other company working in the same domain. If you go on and join some company on the same domain the previous employer might take action due to the breach of the contractual obligation.

Regards

It is not strictly enforceable. No condition imposed by them in your employment agreement could defeat your right to trade and profession and in any case agreement in restraint of trade and profession is void. You may go ahead with your similar subsequent employments. Try that the news of your subsequent employer does not reached FABHOTELS. Rest things can be taken care of.

When we see the Indian legal scenario about the non compete clause, it is prohibited under the Law of Contracts. Section 27 of the Indian Contract Act-1872 provides that ”Every agreement by which anyone is restrained from exercising a lawful profession or trade or business of any kind, is to that extent void”

Indian law is therefore very clear and strict on this point, any such non compete agreement shall not be binding on the parties and the same shall be null and void. By using the term void ab initio, for such type of agreements it has shown that it has kept such non compete clause in the agreements beyond consideration. Indian courts have also consistently refused to enforce post termination non compete clauses in employment contracts as “restraint of trade” is impermissible under section 27 of the Indian Contract Act-1872, and have held them as void and against the public policy because of their potential to deprive an individual of his or her fundamental right to earn a living.

Therefore you may join the competitor company and can challenge the former employer's legal action as per provision of law in this regard.