Legal Term

Non-Compete Clause

प्रतिस्पर्धा निषेध (Pratispardha Nishedh)
Plain English Definition

A clause restricting a person from working with competitors or starting a competing business. In India, post-employment non-compete clauses are VOID under Section 27 of the Indian Contract Act, 1872. During employment, reasonable non-compete restrictions may be valid.

Real Indian Example

Your offer letter says 'you cannot join any competitor for 2 years after leaving.' This is legally unenforceable in India — you're free to join any company after you resign. However, a non-solicitation clause (not poaching clients) may hold.

Found In These Documents
Employment ContractPartnership AgreementFranchise Agreement

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