• Non-compete

A joins a company and signs a non-compete agreement. The terms of the agreement specify that A cannot join another company dealing with the same products during the term of the employment, which is for a fixed period of two years. A submits a resignation letter after one year, and the company relieves him. The company then approaches the court seeking a injunction against A, when he is offered a position in another company dealing with the same products. Can the company succeed in obtaining injunction?
Asked 3 years ago in Labour from Kolkata, West Bengal
Yes , you can seek injunction. Negative covenants operative during the period of employment when the employee is bound to serve his employer exclusively are not to be regarded as restraint of trade and therefore do not fall under s. 27 of the Contract Act.  Refer Niranjan shankar v Century Spinning 1967 Air 1098 SC
H. S. Thukral
Advocate, New Delhi
524 Answers
129 Consultations
5.0 on 5.0

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
Ask a Lawyer

Labour Lawyers

Krishna Kishore Ganguly
Advocate, Kolkata
12695 Answers
260 Consultations
5.0 on 5.0
Thresiamma G. Mathew
Advocate, Mumbai
1323 Answers
89 Consultations
5.0 on 5.0
S J Mathew
Advocate, Mumbai
1961 Answers
68 Consultations
5.0 on 5.0
Shashidhar S. Sastry
Advocate, Bangalore
1254 Answers
61 Consultations
5.0 on 5.0
H. S. Thukral
Advocate, New Delhi
524 Answers
129 Consultations
5.0 on 5.0
B.T. Ravi
Advocate, Bangalore
742 Answers
32 Consultations
5.0 on 5.0
Saptarshi Banerjee
Advocate, Kolkata
200 Answers
4 Consultations
4.9 on 5.0
Advocate Buvaneswari
Advocate, Chennai
24 Answers
12 Consultations
4.4 on 5.0
Rajinder Kumar
Advocate, New Delhi
68 Answers
4 Consultations
5.0 on 5.0
Rajni Sinha
Advocate, Mumbai
273 Answers
25 Consultations
4.8 on 5.0