What Constitutes a Breach of NDA in India?

A breach of a non-disclosure agreement (NDA), also known as a confidentiality agreement or nondisclosure agreement, occurs the moment the receiving party discloses, uses, or fails to protect confidential information as promised in the nda contract. This includes sharing trade secrets with competitors, using proprietary data for personal benefit, leaking details on social media, or retaining information after the relationship ends. Even accidental or indirect disclosure violates the nda agreement and triggers legal liability.

Legal Framework Governing NDA Enforcement

Indian courts enforce nda contracts primarily under the Indian Contract Act, 1872 (compensation & damages), Specific Relief Act, 1963 (injunctions), and Information Technology Act, 2000 (electronic non-disclosure agreements). Criminal provisions under the IPC and IT Act apply when theft of trade secrets is involved, making breach both a civil and potentially criminal offence.

Most Powerful Remedy: Injunction

The fastest and most effective remedy is an injunction. Delhi High Court, Bombay High Court, and commercial courts routinely grant ex-parte interim injunctions within 24–48 hours, followed by permanent injunctions that permanently bar the breaching party from using or disclosing the confidential information protected under the confidentiality agreement.

Monetary Compensation and Penalties

Victims can claim actual damages, pre-agreed liquidated damages (if reasonable), exemplary damages for malice, and account of profits — forcing the wrongdoer to surrender all earnings made from the breach. Recent 2024–2025 judgments awarded ₹7–25 crore in combined damages and penalties for breach of nda agreements in tech and fintech sectors.

Why Generic NDAs Fail in Court

Thousands of businesses use vague online templates lacking clear definitions of confidential information, jurisdiction clauses, survival periods for trade secrets, and reasonable liquidated damages. Courts frequently strike down such nondisclosure agreements as unenforceable or in restraint of trade.

How LawChef Makes Your NDA Breach-Proof

At LawChef, every non-disclosure agreement and nda contract is custom-drafted by senior commercial advocates. We include precise definitions, perpetual protection for trade secrets, Delhi/NCR jurisdiction and arbitration, pre-agreed damages, and full IT Act compliance — ensuring swift interim relief and maximum recovery when breach occurs.