Tata Consultancy of Bombay, India, is an international computer consulting firm.

Question

Tata Consultancy of Bombay, India, is an international computer consulting firm. It spends considerable time and effort recruiting the best personnel from India's leading technical schools. Tata employees sign an initial three-year employment commitment, often work overseas, and agree to work for a specified additional time when they return to India. Desai worked for Tata, but then he quit and formed a competing company, which he called Syntel. His new company contacted Tata employees by phone, offering higher salaries, bonuses, and assistance in obtaining permanent resident visas in the United States if they would come work for Syntel. At least 16 former Tata employees left their jobs without completing their contractual obligations and went to work for Syntel. Tata sued. What did it claim, and what should be the result?

Explanation / Answer

There was a hindrance that was observed in the Contractual rights that resulted into the breach of the contract that the Tata employees signed with the Company. In this regard, Tata sued. Based on the suit, the result was that that while the United States District Court granted for Syntel the summary judgment, the Court of Appeals reversed the same. The reasoning behind this was that the act of Syntel was not legal in the sense that it attempted to hack the employees of Tata even prior to the completion of their contractual agreements with the Company, thereby seeking to reap the benefits from the place where it failed sowing anything. The impact was that the case went for a trial.

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