• NDA signed forcefully

Dear sir
I was working with one proprietary firm having annual turnover of around 1 cr for last 17 yrs.
Inbetween 4 yrs back I left same firm due to salary issues n started my own trading firm in sameachinery spares n even had sum deal with the company as well.
But very soon I come to know that I can't earn that much so I decided to join same form after 9 months break. Even they also hired me as business consultant with half of the salary than I used to get.
Now during last 3 yrs period even my firm starts getting orders n I started making my products side by side from vendors.
Looking at my growth suddenly one day owner sacked me from job saying m doing job n growing as a competitor as well.
They forcefully signed non disclosure non competitor agreement try to put political pressure taken extortion money n now asking profit loss of 30 lacs...infact my last 3 yrs turnover is 30 lacks.
Now I can't go to police who r friends of them
Can't go to lawyer as they said why u signed
Can't go to any political sources as they have power n money.
What to do sir.
A common man can't think of his family n settlement of good life?
I gave 14 yrs of my life with honesty but in vain.
Pankaj gangurde
Asked 4 years ago in Business Law

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14 Answers

The only option is that you hire a lawyer and file a complaint case against the employer forgetting forcefully your signature on NDA if the Court admits your complaint you can order the investigation by police after lodging an FIR and report to the courts

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

Any agreement signed by coercion force is not valid agreement so you can file a complaint regarding same and can ask for cancellation of the said agreement.

Also your firm has been in business since you joined company so you can have a ground that the NDA was signed forcefully to restrict you from doing business started before which is illegal in meaning of section 27 contract act.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Section 27 in The Indian Contract Act, 1872

27. Agreement in restraint of trade, void.—Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void. —Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void." Exception 1.—Saving of agreement not to carry on business of which goodwill is sold.—One who sells the goodwill of a business may agree with the buyer to refrain from carrying on a similar business, within specified local limits, so long as the buyer, or any person deriving title to the goodwill from him, carries on a like business therein, provided that such limits appear to the Court reasonable, regard being had to the nature of the business. 16 [***]

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Better file a private complaint under Sec 200 crpc against the person for inducing threat on you and making you to sign document to gain wrongfully from you. Magistrate will direct police to register case and investigate.

Secondly since the agreement was without consent and was obtained by fraud coercion file a declaratory civil suit to declare it as illegal and void in law.

Swarnarka Chowdhury
Advocate, Mysore
1878 Answers
5 Consultations

5.0 on 5.0

Dear Sir,

Let him issue a legal notice and thereafter let him file a suit for recovery of amount. Firstly he cannot go to Court and even if he goes to Court he cannot prove anything against you. There are several issues which have to be established before a Court of Law. Just ignore his threats and whenever they initiate any civil or criminal action take my guidance and proceed. Concentrate on your work nothing will happen.

Kishan Dutt Kalaskar
Advocate, Bangalore
6050 Answers
381 Consultations

4.8 on 5.0

During tenure of your employment you cannot carry on any business

2) on termination of employment you are at liberty to start your business

3) NDA agreement is binding on you

4) however any agreement in restraint of trade is void

5) refuse to pay Rs 30 lakhs demanded by your ex employer

Ajay Sethi
Advocate, Mumbai
87973 Answers
6207 Consultations

5.0 on 5.0

1) As of now first you transferred all your business in the name of your wife or son. On paper they will be owner or the company and you don't have any responsibility in that company on paper. Physically you will be dealing but on paper work your family members. You should not sign any paper once you sold your company to family.

2) Than you can tell your boss that you have sold company now and you do not have any contracts and business.

3) after selling your company than six months you can resigned from that company.

Ganesh Kadam
Advocate, Pune
12338 Answers
191 Consultations

4.9 on 5.0

Immediately lodge your protest with this co. and inform them that you'll not be bound by the NDA and the NON compete they made you signed under duress and coercion.

You can get in touch with a lawyer to get the above protest drafted.

,

In any view of the matter, an agreement in restraint of trade is void; and hence, if the scope of the NDA and the non compete signed by you is too narrow, it'll be void automatically.

Vibhanshu Srivastava
Advocate, New Delhi
9426 Answers
245 Consultations

5.0 on 5.0

Dear Client,

Approach lawyer and file complain through court or any other relief through court.

NDA clause is not maintainable in Indian Legal System.

Sec 27 Read as -- 27. Agreement in restraint of trade, void.—Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void. —Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void."

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

Hello,

If you are unable tol lodge an FIR against them then go ahead and file a complaint before the magistrate under section 156(3). If lawyers there are not helping you then you may take services from some outstation Advocate.

What cases have they filed against you?

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

Do not go for any settlement just leave the company after six months selling of your ow company to family members.

Ganesh Kadam
Advocate, Pune
12338 Answers
191 Consultations

4.9 on 5.0

You can approach the court don't worry

Anwar Zaidi
Advocate, Mira Bhayandar
231 Answers

4.5 on 5.0

Any contract including NDA is not valid if it is signed in coercion. File a declaratory suit.

V Ranjan
Advocate, Delhi
62 Answers

5.0 on 5.0

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”.

Exception : One who sells goodwill of a business with a buyer to refrain from carrying on a similar business within specified local limits so long as the buyer, or any person deriving title to the goodwill from him, carries on a like business therein provided that such limits appear to the court reasonable, regard being had to the nature of business.

the forcible signature for the non disclosure agreement is not valid in law nor it is enforceable.

Dont worry about the political or any other pressure, you can fight is out in court of law properly.

You can engage the services of an advocate who can understand law and not the unwilling person.

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.

Although section 27 of the Indian Contract Act states that all agreements in restraint of any profession, trade or business are void, the current trend as per various judicial pronouncements leads to the conclusion that reasonable restraint can be permitted to some extent and does not render the contract void ab initio. Reasonable of restraint depends upon various factors, and the restraint in order to prevent divulge of trade secrets or business connections has to be reasonable in the interest of the parties to ensure adequate protection to the covenant. On careful analysis of section 27 keeping in view the exception provided with it, it can be safely concluded that the section implies that, to be valid an agreement in restraint of trade must be reasonable between the parties and consistent with the interest of the public.

T Kalaiselvan
Advocate, Vellore
78131 Answers
1543 Consultations

5.0 on 5.0

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