Breached Non-Solicitation Agreement Costs Businessman Rs. 71 Crore.
08 January 2024
Alternate Dispute Resolution >> Business & Commercial Law | Business Laws >> Business & Commercial Law | Contract Enforcement >> Business & Commercial Law
In a recent lawsuit, Santosh Kumar Garg successfully recovered Rs. 71,86,00,000 from Jitendra Virwani for violating a non-solicitation agreement (NSA) established upon Virwani's sale of his shares in Vikas Telecom.
The NSA prohibited Virwani from soliciting Vikas Telecom's employees or clients. Garg alleged that Virwani breached this agreement, resulting in financial losses. Virwani contested the lawsuit, arguing that it was filed beyond the legal limitation period and disputed the amount claimed. He maintained that he had issued a cheque for the sum, but payment was subsequently stopped.
The court dismissed Virwani's arguments, finding them unsubstantiated. The judge ruled that the lawsuit fell within the acceptable timeframe and that the cheque presented by Garg had been dishonored. Emails presented as evidence further bolstered Garg's case, as they contained acknowledgements from Virwani regarding the debt.
Consequently, the court ruled in favor of Garg. He was awarded the full sum of Rs. 71,86,00,000 along with interest accrued at a rate of 10% per annum, calculated from July 22nd, 2014. This verdict highlights the importance of upholding non-solicitation agreements and the potential legal ramifications for violating them.