Parmod Kumar Yadav vs M/S Future Soft (India) Pvt. Ltd on 30 November, 2013
19. Hon'ble High Court in High Polymer Labs Pvt. Ltd. vs.
R.K.Mutreja and Anr (Supra) laid down in para 14, "To my mind, the
law laid down by the Supreme Court clearly is that any contract in
restraint of trade after the period of employment of service is void as
vocative of Section 27 of the Contract Act but that such restrictive
covenant during the period of employment is binding unless it is
unconscionable, unreasonable, excessively harsh or one sided".
Hon'ble High Court further laid in para 16 as under:
"I am, Therefore, of the view that Section 27 of the Contract
Act is applicable when there is a contract in rest trait of trade after
the cessation of employment whether by resignation or in any other
manner and such a restrictive covenant is void and unenforceable.
However, such a restrictive covenant is enforceable and is not hit by
Section 27 of the Contract Act if the same is during the continuance
of service of a wholetime employee provided that such a, covenant or
contract is neither unreasonable nor unconscionable nor excessively
harsh nor onesided."