This is a heartfelt opinion based on the limited information available in the thread initiated by you.
Is this company registered in India? Was the employee/associate employed in office of the company located in India?
Generically speaking: If the agreement is not signed this may be deemed as not made, offered, accepted hence may be deemed as non existent between both the employer and employee.
What is the location of jurisdictional courts stated in such contract…………?
The burden of proof shall lie upon the party that shall lay a claim to breach of agreement.
Gossip and rumor can not be record.
The appointment letter/contract of employment/ or any digital contract signed by employee/associate may also be look into carefully to check if some clauses to the effect are inserted or not?
Apparently it seems you have gone thru the appointment letter/contract of employment for ‘Non Compete Clause’, non solicitation.
You may once again carefully go thru job advertisement, interview call letter, offer letter, appointment letter, digital contract etc Employment book, corrigendum if any supplied to you or signed by you, emails etc if any………………………………and look for other clauses e.g.; Non Disclosure, Confidential information, Trade Secrets, Database etc……………….
Employee can not be restrained to join any other employer after separation and non compete clause amounts to restraint of lawful profession.
]
An agreement, which restrains anyone from carrying on a lawful profession, trade or business, is void to that extent. Under section 27 of the Indian Contract Act, 1872 agreements in restraint of trade are void.
Indian courts have consistently refused to enforce post-termination non-compete clauses in employment contracts, viewing them as "restraint of trade" impermissible under Section 27 of the Indian Contract Act, 1872, and as void and against public policy because of their potential to deprive an individual of his or her fundamental right to earn a livelihood.
The ‘Non Disclosure’, ‘Confidential Information’ “Database’ may stand as an exception and, its validity, may be upheld in post employment period.
There are many threads on similar subjects which you may find interesting e.g:
https://www.lawyersclubindia.com/forum/Legal-issues-in-joining-client-company-85262.asp#.UffhMNKAqWM
It shall be appropriate to show your documents and record to a competent and experienced labor consultant/service lawyer/law firm, specializing in such matters, give inputs in person…………………….
The lawyer that has seen all documents and has analyzed the merits can advise you the best, and let your lawyer’s opinion be qualified and final.
You may proceed as deemed fit at your end.
Valuable advice of learned experts/members is sought.
