Legal Question in Employment Law in India

If starting or joining a competitive company is not allowed by law

My appointment letter says:

You shall not at any time either during the continuance of your employment or at any time thereafter , use or utilise for yourself or disvulge or disclaose to any person , firm , any details regarding know-how, drawning. knowledge, trade scret , business activities etc.. of the company which you may come across during the course of your employment.

I have resigned three months back but still to get my final check(gratuty,leave encashment, last month's salary) , they have threaten to file case againt me for starting a company competitive to them and disclosing company confidentials to this newly formed competitive company.

Question~

1)If it is illegal to start a company competitive to my previuos employer after my resignation or to join any employer competitive to my previous employer ?

2)If they can sue me?

3) If I have some law in my favour to get relieved of the stress and should able to compete with them in the same market?


Asked on 6/22/08, 3:05 pm

1 Answer from Attorneys
vinay sabharwal vinay sabharwal & co

Re: If starting or joining a competitive company is not allowed by law

It is not illegal to start a new company.The experience so gained by you is your asset. It is not at all illegal when such an experience is utilised by you in your own subsequent venture.however do not use any specific data in respect of any specific transactions of your former employer company.

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Answered on 6/25/08, 9:37 am


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