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Non-compete Clause in an Employment Agreement Void

This Connect provides a brief overview of the judgement of the Calcutta High Court in the Parraj Automobiles Private Limited v. Mr. Samiran Sinha case, where it held that as per Section 27 of the Indian Contract Act, 1872, non-compete clause in an employment agreement shall be void, as the same is violative of a person’s right to livelihood. However, provisions pertaining to non-solicitation, non-disclosure and similar confidentiality obligations shall be valid and employers can seek protection of the same through injunctive relief.