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1 - 6 of 6 (0.33 seconds)Superintendence Company Of India (P) ... vs Krishan Murgai on 9 May, 1980
Hon'ble Supreme Court in
Superintendence Company of India (P) Ltd. vs. Krishan Murgai
(Supra) took this distinction to its logical conclusion and held that,
"Under Section 27 of the Contract Act, a service covenant extended
beyond the termination of the service is void". It was further held
that "the court's, therefor, view with disfavour a restrictive covenant
by an employee not to engage in a business similar to or competitive
with that of the employer after the termination of his contract of
employment".
High Polymer Labs. Pvt. Ltd. vs R.K. Mutreja And Anr. on 7 September, 1982
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."
Niranjan Shankar Golikari vs The Century Spinning And Mfg. Co. Ltd on 17 January, 1967
Ltd., (1983) ILR Delhi 213
High Court High Polymer Labs Pvt. Ltd. vs. R.K.Mutreja and Anr.
Hon'ble Apex Court in Niranjan Shankar Golikari (Supra) drew a
discretion between a restriction in a contract of employment which is
operating during the period of employment and one which is to operate
after termination of the employment.
The Code of Civil Procedure, 1908
The Indian Evidence Act, 1872
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