Section 9 Interim Measures and Enforceability of Indirect Non-Compete Clauses Against Non-Signatory Sister Concerns

sketch of the Bombay High Court
Case
Parle Agro Private Limited v. Udayak Agro Products Pvt Ltd (Bombay High Court, 23-09-2026)
Law
Arbitration and Conciliation Act, Indian Contract Act.

Highlights of the Judgment:

  • Examination of the scope of Section 9 of the Arbitration and Conciliation Act, 1996, for granting interim relief affecting non-signatory group entities.
  • Interpretation of negative covenants prohibiting direct and indirect competition through associate or sister concerns.
  • Analysis of contractual protections covering trade secrets, technical know-how, and manufacturing processes under franchise agreements.
  • Evaluation of the balance of convenience and irreparable injury when assessing interim injunctions against alleged breaches of non-compete clauses.
  • Reconciling separate corporate personalities with overarching contractual obligations binding related corporate entities.