The Indian Contract Act, 1872, which provides a framework of rules and
regulations, governing the formation and performance of a contract in India
deals with the legality of such non-compete covenants. It stipulates that an
agreement, which restrains anyone from carrying on a lawful profession, trade or
business, is void to that extent. Under section 27 of the Indian Contract Act,
1872 agreements in restraint of trade are void.
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