Following the board's decision, Jain may not find it easy to leave the liquor company, which he is credited with turning around.

According to sources close to the company, SWC has issued a letter to Jain, saying his resignation is a breach of the terms of the agreement between him and the company.

The agreement requires a written notice of 12 months prior to the resignation, said the sources. The company is believed to have written that the agreement continues to be in force and Jain remains contractually bound by the firm.

The company is believed to have taken strong objection to reports of Jain joining the Vijay Mallya-controlled UB group, its main rival.

The company is also believed to have written to Jain that in his capacity as MD, he had access to confidential documents and knowledge about sensitive issues, decisions and affairs of the company, including its future plans.

SWC is understood to have communicated to Jain that his employment contract with the company has not been terminated. It has also requested him not to accept any other employment, including from the UB group, said the sources.

Jain's resignation, after being at the helm of the Manu Chhabria-controlled company, had caused a flutter in the liquor industry. Industry officials had attributed his resignation to "difference of opinion" with the Chhabrias.

It is believed that Jain's resignation was a result of the "curtailment of his powers" in recent months, following an internal restructuring of key executives.

Jain, who is also credited with spearheading SWC's acquisition strategies, is understood to have not taken well to the restructuring, resulting in the appointment of two independent executive vice-presidents in charge of beer and liquor operations, which were earlier under Jain's control.

Soon after Jain announced his resignation, Mallya had issued a statement saying he would invite him to join the UB group. A few days later, another statement from the UB group announced Jain's induction as president.

The UB group recently made a Rs 250-crore offer to buy out three key SWC liquor brands--Haywards, Director's Special, and Royal Challenge--to strengthen its presence in the premium and regular whisky and beer markets. The offer was made by McDowell & Co Ltd, the UB group flagship, before the Calcutta high court.