Legal notice from previous company

Could you provide here the clause ad verbum?

The company does hold such a right but not the widest latitude is given. It should be reasonable. 

Hi, it is advisable to send them a reply of the legal notice , at this stage mentioning thier demands and allegations to be false and frivolous.. Since they have not initiated any legal proceedings , at this stage we can only prepare our defence .. For further consultation kindly contact ph:- 9654062181

I am not a lawyer but wisdom tells me since you were an employee those were your living skills.What financial guarentees your previous employer provided you after you left that company.Since they did not provide any such remuneration for 3 years you do not have any option but to join another company for your daily bread and butter. Hence their notice after 3 years just because you have signed an nda to earn your bread and butter is one sided and not legally valid!

Dear Aditya,

Thanks for the reply.

Clause:

1) After ceasing to be employed in company's service, you shall not do any of the following acts, for a period of three(3) years, without the written permission of the Managing director.

• Engage yourself in employement, consultancy, business or vocationeithet with or without monetary/other benefits, with any Person/firm/company directly or indirectly carrying on of any business similar to or incompetition with business of the company.
• Seek to procure orders fom or do business with any person/firm/company who has at anytime during the three years immediately preceding such cessation, done business with the company.
• Endeavor to entice way from the company any person who has at time during the six months immediatly preeding such cessation been employeed or engaged by the company.

2) You shall not diclose or give out to any unauthorised person, any proprietary or confidential information or documents relating to the products, research, designs, product development, services, business or operations, nor use the same for any purpose other than the company's during the period of your employement in the company or after cessation of employement in the company

Hello Venaktesh, please refer to Sec 27 Contract Act. That will be of help. The first point of the respective clause appears to be hit by Sec 27.

The query starts with pointer to Non Compete Clause and ends with reference to NDA..

Probably there was NO separate agreement signed on NDA and it was also narrated in appointment order.

 

While Indian Courts have consistently been declining to enforce Non Compete Clauses……………the NDA can be troublesome.

You have also posted that your friend has developed similar products for current establishment although he/she signed NDA with past establishment.

 

At this stage when a (mere) letter has been sent by past establishment if he/she can settle the matter by his/her own skills and convince them that it is entirely different and NO violation has been caused by him/her and put the matter on permanent shut up mode, it shell be the best recourse.

Here he/she has to mind the clauses signed by him/her with current establishment and must not disclose anything that alerts current establishment.

 

The letter might be pre litigation notice.

If the matter is not resolved and lands up in court of law then defend in court of law on merits.

If he/she has helped current establishment then ideally IT should help.

You may check if and how far or fully the current establishment shall support and defend your friend and product developed for current establishment.

 

You may go thru the case of M/s TVS vs M/s  Bajaj and issue of 2plugs and 3 plugs…. And pick up the relevant points, if any, and benefits if any you can have from the said case.

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Originally posted by : Venkatesh
	Dear Sirs, We have typical poblem. My friend when he started career joined in Locomotive Product developement company. As per the Appoinment order of the compnay one clause is mentioned that he should not join in any of the same business company and compitetor companies with in three years after relieving from the company. But after having 3 years experience he got better offer from an big MNC which is the same business. So he joined over there and developed few products similar to earlier company. Now its almost three and half years completed in the present comapany. At this point of time previous company sent a letter stating that Breach of contract agreement-NDA and claiming that estimated loss for the company about five crores. And asking his to pay that money and stating that failing which legal actions would be initiated against him. Is there any right for any company to hold the person skills to serve other companies. How to reply on that letter and how to come out of this loss.  Regards Venkatesh

 

Take help from some seasoned and well experienced expert in service matters. Any casual reply of anyone on your casual query may not help you in anyway.