can my company stop me from joining competition
A joins a company and signs a non-competing company 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 three 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?
Yes , the company 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.
- Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at LawRato.com and has been responded by one of the Labour & Service Lawyers at LawRato.com to address the specific facts and details. You may post your specific query based on your facts and details to get a response from one of the Lawyers at LawRato.com or book a Detailed Consultation with a Lawyer of your choice to address your query in detail.
Get Started >>
Answers by Our Lawyers
- Landlord not giving possession nor giving money back what to do?
- Unable to pay credit card amount what can i do
- rights of step brothers in my fathers property
- Does daughter has share on property of mother gifted by grandfather
- What is the procedure for adoption? No paperwork was done at first.