Company filed case
4 months ago
Company headquartered at Mumbai. I employed at Chennai region. Resigned one year back. They have not released my salary. After one year they filed case at Mumbai for criminal conspiracy with the vendors. Can they file case at Mumbai?
A.Dear Client,
Yes, the Company can file a case of criminal conspiracy in Mumbai provided in the contract of employment it is specifically mentioned that all disputes arising out of employment shall come under the jurisdiction of the Court at Mumbai which is their registered office under the Companies Act, 2013. As per the mandate of Section 27 of the Indian Contract Act,1872, any terms and conditions of an agreement that directly or indirectly compels the employee to serve the employer or puts a restriction on them joining the competitor or other employer is not valid. The employee has the right to resign from the employment even if he has agreed to serve the employer. In the case where the employer is able to prove that the employee is joining the competitor to disclose the trade secret then the court may issue an injunction order restricting the employee from joining the competitor. Further, Section 73 of the Act makes provision for unliquidated damages (not stipulated in a contract), Section 74 deals with liquidated damages (stipulated in a contract) and if such breach of contract u/s.73. 74 of the Act resulted in an actual loss or damage to the opposite party employer, they can file suit against the employee claiming compensation. Moreover, the complaint of criminal conspiracy u/s.120A IPC which is punishable u/s.120B has been filed by the Company within the time provided under the Limitation Act. Section 177 of Cr. PC provides that territorial jurisdiction of every criminal offense that is committed in India shall be ordinarily inquired and tried in the court within whose local limits the offense is committed. Under section 28, any offense under the Indian Penal Code may be tried by the High Court, and under section 29, any offense under any other law which contains no special provision as to the trying courts may be tried by the High Court. You can prefer an appeal before the High Court to quash the criminal case filed in Mumbai on the grounds of territorial jurisdiction and if the court finds merit in your appeal, the criminal case may be quashed. Reach out to an Advocate for guidance and steps.
Yes, the Company can file a case of criminal conspiracy in Mumbai provided in the contract of employment it is specifically mentioned that all disputes arising out of employment shall come under the jurisdiction of the Court at Mumbai which is their registered office under the Companies Act, 2013. As per the mandate of Section 27 of the Indian Contract Act,1872, any terms and conditions of an agreement that directly or indirectly compels the employee to serve the employer or puts a restriction on them joining the competitor or other employer is not valid. The employee has the right to resign from the employment even if he has agreed to serve the employer. In the case where the employer is able to prove that the employee is joining the competitor to disclose the trade secret then the court may issue an injunction order restricting the employee from joining the competitor. Further, Section 73 of the Act makes provision for unliquidated damages (not stipulated in a contract), Section 74 deals with liquidated damages (stipulated in a contract) and if such breach of contract u/s.73. 74 of the Act resulted in an actual loss or damage to the opposite party employer, they can file suit against the employee claiming compensation. Moreover, the complaint of criminal conspiracy u/s.120A IPC which is punishable u/s.120B has been filed by the Company within the time provided under the Limitation Act. Section 177 of Cr. PC provides that territorial jurisdiction of every criminal offense that is committed in India shall be ordinarily inquired and tried in the court within whose local limits the offense is committed. Under section 28, any offense under the Indian Penal Code may be tried by the High Court, and under section 29, any offense under any other law which contains no special provision as to the trying courts may be tried by the High Court. You can prefer an appeal before the High Court to quash the criminal case filed in Mumbai on the grounds of territorial jurisdiction and if the court finds merit in your appeal, the criminal case may be quashed. Reach out to an Advocate for guidance and steps.
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A.Dear Sir,
You may challenge the same by approaching High Court and it may be quashed by the High Court.
You may challenge the same by approaching High Court and it may be quashed by the High Court.
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