Non-compete clauses cannot restrain a company from conducting business after contract termination

Indus Power Tech Inc. Vs Echjay Industries Pvt. Ltd. (Bombay High Court)

In a significant ruling, the Bombay High Court has determined that a company cannot be restrained from conducting its business following the termination of a contract, emphasizing that non-compete clauses do not provide grounds for injunctive relief after such termination. The case involved Indus Power Tech Inc., referred to as “the Company,” and Echjay Industries Pvt. Ltd., termed “the Supplier.”

Background of the Case

The dispute arose from a Master Supply Agreement (M

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