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CNeed some advice on how to process this.
I worked for a company for 2 years and then joined one of its clients(the company made me sign a non-compete – in addition to the offer letter at the time of joining – that I cannot join its clients for 2 years or something like that – mind you they wouldn’t have offered me a job had I not signed it)
I left the company on 12th April 2024. I updated my LinkedIn (and this was a dumb move). I didn’t think they would care because they were going to terminate the contract with the client. And as of June 2024, the company I’m working with is no longer their client.
The company sent a legal notice(I replied to it through a lawyer) in May and then I got a summons on 3rd Feb 2025 that the case will be ex-parte if I don’t show up. I checked the details and the case was registered in July last year but I never got any notice. Only got the summons recently.
Now, I’m talking to a lawyer and he assured me that it won’t stand. But I’m worried about having to spent a lot of money on travelling since the company is in Pune which is almost 1600KMs. Lawyer also said it’ll take atleast 7-8 hearings. So, I’ll have to spend a lot of money on flights plus lawyer’s fee.
They have accused me of other things as well in the legal notice.
Here is the non-compete clause –
I will not for period of two year afer the termination of this agreement,
whether voluntarily or involuntarily• directly or indirectly solicit to provide, without the prior written consent of the Company, any professional services such as those provided by the Company for anyone who is a client of the Company anytime during the twelve months prior to my leaving the Firm and for whom provided any services as an employee of the
Company during the five years prior to my leaving or (b) directly or indirectly, without the prior written consent of the Company, solicit for employment with myself or any Company or entity with which I am associated, any employee of the Company or otherwise disrupt, impair, damage, or interfere with the Company’s relationship with its employees.What should I do? And will this be in my favour or not?
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CThey have accused me of bringing damage to their reputation, telling people to resign while I was working there and this –
Our client states that you are bound by the terms of the said Agreement
(Annexure I), specifically reproduced below:
“I will not make any private use of Confidential and Proprietary
Information that may come to my attention because of my employment with the Company, nor will I pass such Confidential and Proprietary Information on to anyone else. Iunderstand the term “use” includes, but is not limited to, anyone’s purchase or sale of securities influenced by such Confidential and Proprietary Information, access to which is directly or indirectly due to my relationship with the Company.”They are seeking close to 18 lacs.
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AI will not comment since there must be nuances in this situation that I’m not aware of.
But you should read Section 27 of the Contract Act. The company has to prove that you will divulge confidential company information that has the potential of harming their business interest.Secondly, I’m not aware of what your former company is, but since the company has filed the suit in another city, you should look into challenging the jurisdiction on the ground that the alleged breach has occurred in your present place of living.
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CI did come across Section 27. I am guessing they want to waste my time and resources because it would be hard to prove I leaked any confidential information.
About the 2nd point, can you explain a bit more? My lawyer didn’t say anything about it(may be he doesn’t know). Also, I was working from my hometown so your point stands.
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AYou should ask your lawyer if that court has jurisdiction or can the jurisdiction be challenged.
Please read Section 16 of CPC (you can google). I am quoting a part of the same :
“…Court within the local limits of whose jurisdiction the defendant actually and voluntarily resides, or carries on business, or personally works for gain.”Now there can be a jurisdiction stated in the agreement as well. So go through it with your engaged lawyer.
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UI don’t think non-compete clauses can hold for 2 years. They’re generally for 6 months.
Your lawyer can try to contest the logic behind it and you can say that you were pressured into signing this as they said sign it or leave. -
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Uwhy don’t you quit and settle for zero amount? im thinking you can probably get another job. Also your former employee can also file a lawsuit on your new employer which will essentially make you part of the new employer’s problem. so think wisely.
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