Harish Kumar (Owner) 06 August 2012

Validity of an agreement

Dear Sir,

One of my friend has left a pvt ltd company in last dec. he has an agreement in which there is a condition that after the termination of this agreement he will not work for another 3 years in similar trade. Also this agreement was done in Rs 100 stamp paper which was not registered. agreement was signed by the director of the company but the same was not stamped (director). Is the ageement valid? kindly advise.

Regards

Harish

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2 Replies

Adv.R.P.Chugh (Advocate/Legal Consultant (rpchughadvocatesupremecourt@hotmail.com)) 06 August 2012

Such restriction is a unreasonable restriction on your friends right & freedom to practise profession of his choice and hence would fail to bind him being hit by S.27 of the Indian Contract Act, 1872. Your friend can work freely without fear of anything.