An IT company threatening to sue due to contract breach. What are the options?

Community Forums Legal Advice India An IT company threatening to sue due to contract breach. What are the options?

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    • #17024 Reply
      Abhishekking568
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        Abhishekking568
        PARTICIPANT
        April 11, 2025 at 1:12 pm
        My friend was working in a company X as a business development manager. He shared client’s data and project details to his friend who had a very small MSME.
        They started working on the project but the friend’s company found out. They terminated him and are threatening to sue him.

        My question is –
        1. If they sue him, and he loses the case, is there chance of jail time or just monetary fines?

        2. Will the guy who had the MSME registered and started working for the client be dragged into this and face punishment?

      • #17027 Reply
        Shashankshark981
        Participant
          S
          Shashankshark981
          PARTICIPANT
          April 11, 2025 at 1:25 pm
          Yes , there is breach of trust and violations of the IT act. The company can sue for contract breach,loss of business and can lodge an FIR for a criminal offense and your friend can do jail time. Best option is to settle , write an apology letter, ensure data shared is destroyed to the companies satisfaction . Whatever it takes to get out of the criminal complaint.

          • #17030 Reply
            Primeninja2004
            Participant
              P
              Primeninja2004
              PARTICIPANT
              April 11, 2025 at 5:42 pm
              Do Not Write anything.

          • #17026 Reply
            Desiknight9081
            Participant
              D
              Desiknight9081
              PARTICIPANT
              April 11, 2025 at 1:26 pm
              In all likelihood they’ll sue him for exorbitant damages. And yes, the person with whom the data was shared will be sued too.

              • #17029 Reply
                Abhishekking568
                Participant
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                  Abhishekking568
                  OP
                  April 12, 2025 at 7:22 pm
                  Thanks for your input πŸ™Œ

              • #17025 Reply
                Ishitathinker901
                Participant
                  I
                  Ishitathinker901
                  PARTICIPANT
                  April 11, 2025 at 1:46 pm
                  What your ‘friend’ has done is illegal, unethical, immoral & just wrong. Both the questions have the same answer: LIKELY. You have two options:

                  1. Find a good lawyer who will find some technicality in the contract. But this will incur huge money

                  2. Cut a deal with the company.

                  • #17028 Reply
                    Abhishekking568
                    Participant
                      A
                      Abhishekking568
                      OP
                      April 12, 2025 at 7:23 pm
                      Thanks buddy πŸ™Œ i told him that he shouldn’t have done that as it’s unethical as well

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