Competition issues with distribution and agency agreements in India
Competition issues with distribution and agency agreements in India Chadha & Co Regulation of the distribution relationship Competing products Are restrictions on the distribution of competing products in distribution agreements enforceable, either during the term of the relationship or afterwards? Indian courts have drawn a clear distinction between non-compete covenants after the term of the agreement and non-compete covenants post the term of an agreement. To determine enforceability of such covenants, the courts consider the question whether the covenant is or is not in restraint of trade. It is well established that the non-compete covenants operative during the period of a contract are generally enforceable if the restriction is reasonable in the context of the particular trade and business, and where the restriction is required to enhance the level of service to the customers and efficiently manage the sale of products. In a recent judgment of the Delhi High Court, whe...