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Enforceability of post-employment restraint clauses in software development contracts under Indian law?

Jurisdiction: India · 2 min ago

8

Under Section 27 of the Indian Contract Act, post-employment restraint clauses are generally void except where protecting trade secrets. The landmark case Niranjan Shankar Golikari (1967) carved narrow exceptions during employment, but courts consistently strike post-termination restraints

Statute

Section 27, Contract Act

Restraint of trade

Case Law

Golikari v. Century Spg

SCR 1967 · Supreme Court

What the agent ships

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Sources · 5

Section 27, Contract Act

Statute

Golikari v. Century Spg

SCR 1967

Limitation Act, s. 22

Statute

Balkrishna Savalram

AIR 1959

Every claim, cited.

The agent reads statutes, case law, and your own files in parallel — then cites every source it stands on. No paraphrased summaries. No invented authorities.

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Clause 8.2 · Indemnity

indemnify Customer for any and all losses including…

Suggested edit

losses arising from negligence, capped at fees paid in preceding 12 months.

ApplyDiscard

Redlined as you type.

Paste a contract or start blank. The agent flags indemnity gaps and one-sided liability clause by clause, proposing replacement language inline — you decide what lands.

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Active matters

12

Northline Employment

42d in memory

Active

Aperture v. Halcyon

128d in memory

Active

SaaS Vendor Review

7d in memory

Review

Tabor IP Filing

91d in memory

Draft

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Law Firm Partners

Memo · Northline v. Aperture

Draft

Arguments · 3 pulled

01

Restraint clause void u/s 27

02

Continuing breach · fresh cause

03

Quantum capped by Sec. 73

Weak argument flagged · Clause 8.2

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Inbox · Triaged

28

Vendor · Datazen MSA

High

NDA · Harbor Labs

Low

Offer · A. Mehta

Med

SOW · Lumen Design

Low
Cleared in 14 min · earlier this week

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earn-out escrow · precedent

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M&AIndia2024+Cited

Results · 24 matches

Meridian SPA · Schedule 4

R. Shah · 2024

Aperture Holdback Memo

Internal · 2023

Tabor MIPA · Escrow

K. Iyer · 2024

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7.2 hrs42 min

8

Share Purchase Agreement

Northline Acquisition · Draft v3

Ready

Share Purchase Agreement

Summary of work

  • Representations & warranties cross-checked against disclosure letter
  • Indemnity cap reconciled with term sheet (18 months, 20% of consideration)
  • Non-compete narrowed to match jurisdiction enforceability
Generated by 8rney · Agent mode3 sources · 2 flags

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Sources visible

Question

Limitation period for continuing breach of contract?

Deep

Answer · streaming

Under the Limitation Act, continuing breaches give rise to a fresh cause of action each day — relevant cases: Balkrishna Savalram (1959), Fyzunnissa Begum (1941).

Section 223 casesContinuing wrongIndia
Streamed response with citations

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Northline Employment

Processing · 72%

2 flagsActive

Aperture v. Halcyon

Processing · 48%

Active

SaaS Vendor Review

Indexed · ready

1 flagReview
One workspace per matter

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Canvas Editor
Apply or discard edits

Section 8.2 · Indemnity

The Provider shall indemnify Customer for any and all losses arising from any cause whatsoever including but not limited to breach…

Suggested replacement

…losses arising from Provider's negligence or breach, capped at fees paid in the preceding 12 months.

Risk: High → Low
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01
8
Term_Sheet_v3.docx
Service_Agreement.pdf
Disclosure_Letter.docx
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02

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Brief · Ready

Share Purchase Agreement

ClientNorthline Holdings
JurisdictionIndia
Sources12
3 edits suggested · tap to review

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