[Allen Vs Unacademy] Jaipur Court Restrains 20 Teachers From Breaching Service Agreement

Commercial Court no. 1 Jaipur vide order dated, 29.06.2022 and 13.07.2022 granted an ad-interim stay in favour of Applicant, Allen career Institute by restraining 20 Respondents, teachers at Allen Institute, who shifted to Unacademy, overnight, from breaching the service agreement and further restraining the respondent from divulging to any other business any confidential or proprietary information of the applicant mainly trade secret, course materials, question papers, formulas, algorithms etc. 

It is pertinent to mention that over 50 teachers have allegedly left Allen Career Institute to join Unacademy overnight. 

Counsel for the respondents stated that no case for stay can be made out since the teachers have already joined Unacademy, and a mail was sent to Allen institute in this regard.

The counsel of the Applicant apprised the court that after investing significant time and effort in training the Respondent faculty members, they abruptly left the Applicant institute in the middle of the academic session without informing/handling over the job responsibilities in flagrant violation of the service agreement.

In Kota's competitive exam prep environment, the battle to acquire star teachers between top coaching institutes is not new. The two giants of the coaching industry have been embroiled in controversies over poaching tactics. The situation is so intense that Allen's co founder Brajesh Maheshwari had previously made it clear that that teachers who leave Allen for more money would be blacklisted forever from returning to the institute. 

The applicant, Allen Career Institute, was represented by Adv Aditya Jain, Rohit Jain, Neha Gyamlani and Bhavya Golecha.

 Advocate Ajatshatru S Mina appeared for the respondents.