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65. On legal aspect of the case it has been submitted on behalf of the petitioner that law on the point is very clear that if there is a negative covenant, injunction should be granted even though the contract is not specifically enforceable in terms of Section 41(e) of Specific Relief Act read with Section 42 thereof. Section 42 specifically provides that the circumstances in which the Court is unable to compel specific performance, the Court is nevertheless empowered to grant injunction to perform a negative covenant. This position is undisputed.

7. Renusagar Power Co. Ltd. v. General Electric Co. .

8. The Naihati Jute Mills Ltd. v. Khyaliram Jagannath .

9. Spenborough Corporation v. Cooke Sons & Co. Ltd. reported in 1968-1 Ch. 139.

10. Raj Narain Pratap Narain v. U. P. State Electricity Board .

69. It has further been submitted on behalf of the petitioner that in a suit for perpetual injunction under Chapter VIII (Section 38-42) of the Specific Relief Act for an injunction to enforce a negative covenant under Section 42 of the Specific Relief Act, the fact that damages may afford adequate relief to the plaintiff is not a bar to an injunction being granted to restrain breach of a negative covenant.

96. It cannot be disputed that if there is a negative covenant, injunction should be granted even though the contract is not specifically enforceable Section 41(e) of Specific Relief Act read with Section 42 thereof), Section 42 specifically provides that the circumstances in which the Court is unable to compel specific performance, the Court is nevertheless empowered to grant injunction to perform a negative covenant. This position is undisputed.

97. In the present case, the contract contains both affirmative covenants as also negative/covenants (express or implied).

107. The law is well-settled that in a suit for perpetual injection under Chapter VIII (Sections 38-42) of the Specific Relief Act and for an injunction to enforce a negative covenant under Section 42 of the Specific Relief Act; the fact that damages may afford adequate relief to the plaintiff is not a bar to an injunction being granted to restrain breach of a negative covenant.

108. This is clear from Section 42 itself which provides, inter alia, that "the circumstance that the Court is unable to compel specific performance of the affirmative agreement shall not preclude it from granting an injunction to perform the negative agreement." For this ICCL relies on the following cases.