File suit by previous company for compensation due to join new company
3 years ago
I left a company after 3year worked as a software developer in NOIDA (UP)my annual CTC was approx 3 lakhs .Now joined new software company of same nature for my better future at noida (UP). I had left that company after satisfactory clearance given by management. Now my old company suit file me for 11 lakh as compensation to the company due to loss of work on saying that you can not join this company because you had singed your appointment letter accepting our terms conditions and not joining these all company names ware given in that appointment letter . Can my previous company suit such file on me ? Advice please.
This is clearly an agreement in restraint of trade. As such, it is void under Section 27 of the Indian Contract Act.
You can apply to have the case dismissed on this ground.
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Ayantika Mondal @ Prime Legal
Responded 3 years ago
Section 27 of the Indian Contract Act provides that agreements in restraint of trade are void. As such, you can apply to have the case dismissed.
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Jagannath S Pawar
Responded 3 years ago
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