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Aakash Educational Services Ltd. vs Sahib Sital Singh Bajwa & Ors on 29 June, 2020

In Aakash Educational Services Ltd. v. Sahib Sital Singh Bajwa, 2020 SCC OnLine Del 1719, Hon'ble High Court of Delhi reiterated the position of law on the scope of enforceability of negative covenants in a commercial contract, holding that once a contract is terminated, a negative covenant thereunder to restrict the trade, business or profession of any party is hit by Section 27 of ICA. The court also held that while such negative covenants may be legal during the subsistence or currency of the contract, however, post termination of the contract, barring exceptional cases, they will be unenforceable. In the present case, the covenant in the Service Agreement was that the plaintiff will serve the defendant company for a minimum period of two years from the date of his/her appointment and in case of breach of this condition, plaintiff shall be liable to reimburse three month's salary to the defendant.
Delhi High Court Cites 12 - Cited by 2 - V K Rao - Full Document
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