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Employee Free to Join New Firm Despite Employer’s Non-Compete Clause – Delhi High Court

A hand signing an "Employee Non-Compete Agreement" document, overlaid on a black-and-white background of tall office buildings, symbolising corporate employment and legal restrictions.

In a recent case involving a dispute over a non-compete clause, the Delhi High Court ruled that an employer cannot restrain a former employee from joining a new company after the termination of employment. The Court vacated an interim injunction restraining the employee from working with a client of his previous employer.

Validity of Non-Compete Covenants in India

This article discusses the enforceability of non-compete agreements in India, particularly under Section 27 of the Indian Contract Act. It outlines when such covenants may be valid and the role of confidentiality clauses, drawing on key judicial decisions.