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Can we send legal notice to outsource employee for discllosing our trade secreat?

Querist : Anonymous (Querist) 21 October 2010 This query is : Resolved 

Dear Members:
We are coffee providing company and appointed one machine technician/employee through Man Power Agency (was an off roll employee associated with Man Power Agency), had worked in our clients sites/places to maintain coffee vending machine as a technician in Mumbai. In the site/places he had been caught doing some manipulation with our machine therefore started absconding, without our notice and thereafter he submitted his resignation to Man Power Agency.

Now he joined our competitor and started disclosing our trade secrets to them, because of this we are facing major problem with our client.

Kindly let us know what legal action we can take for disclosing our trade secrets.

Can we suggest Man Power Agency to take action.

Can we send legal notice to him from our end for disclosing our trade secret with our competitor.

Devajyoti Barman (Expert) 21 October 2010
Though agreement in restrain of trade is void on the ground of public policy, the sharing of trade secret is one exception. But it is to be seen whether the there is any such agreement with that particular employee or not. If he was employed not directly by your client and there is not contract with him, then I afraid you could nothing regarding sharing such trade secret though you could try to implicate him in any other case like causing damage to the machineries etc.
aman kumar (Expert) 21 October 2010
27- Agreement in restraint of trade void –
Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void. Saving of agreement not to carry on business of which good-will is sold.-Exception 1.-One who sells the good-will of a business may agree with the buyer to refrain from carrying on a similar business, within specified local limits, so long as the buyer, or any person deriving title to the good-will from him, carries on a like business therein, provided that such limits appear to the Court reasonable, regard being had to the nature of the business.
agreement in restrain of trade is void on the ground of public policy,
its important that what is the your terms 7 condition of your company at the time of joining ?

Raj Kumar Makkad (Expert) 21 October 2010
I concur with devjyoti.
pawan sharma (Expert) 21 October 2010
Agree with the experts.
M/s. Y-not legal services (Expert) 21 October 2010
Yes. I too agree with mr. Barman
Querist : Anonymous (Querist) 21 October 2010
thks mr.Barman for your good answer.
Kirti Kar Tripathi (Expert) 21 October 2010
Mr. Devajyoti is absolutely right.
s.subramanian (Expert) 24 October 2010
If there is non disclosure clause in the agreement you can proceed against him legally.


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