That the Defendant be directed to give effect to the
negative covenant contained in clause 15 and 20 of the
Extraction Agreement dated ... merely a suit for perpetual injunction
insisting upon performance of the negative covenants as contained in
Clauses 15 and 20 of the agreement. The plaint
Arguing further learned senior counsel submitted that all negative covenants are
not in restraint of trade. This is true even though the negative covenant ... covenant
even where specific performance of the affirmative covenant may not be enforced.
Section 42 provides as follows:-
"42. Injunction to perform negative agreement
damages on account of the breach of negative covenant
contained in clause (10); and for permanent injunction
restraining the respondent by himself, his servants, agents ... sought an ad interim injunction by way of enforcing
the aforesaid negative covenant and a Single Judge of the
Delhi High Court initially granted
trade interest
of the company.
HELD: The appeal must fail.
(i) Negative covenants operative during the period of
employment when the employee is bound ... interests where the
negative stipulation is not void. There is also nothing to
show that if the. the negative covenant is enforced the
appellant would
Ramachandran submitted on behalf of the petitioner that the negative covenant that is contained in the non-solicitation clause is a reasonable restriction that ... action claiming damages on account of the breach of the aforesaid negative covenant contained in the said clause 10. Two concurring opinions were rendered
submitted that the aforesaid Clause 12 of the Agreement contains a negative covenant whereby the Defendant agreed not to sell or otherwise part with ... behalf of the petitioner that there being a clause containing negative covenant in the said Agreement (Clause 12) and a provision giving rights
That the Defendant be directed to give effect to the negative covenant contained in Clause 15 and 20 of the Extraction Agreement dated ... merely a suit for perpetual injunction insisting upon performance of the negative covenants as contained in Clauses 15 and 20 of the agreement. The plaint
raised by the learned senior counsel for the
petitioner:-
(a) a negative covenant restraining the right of the employee, during the
subsistence of his service ... negative covenant are not
contained in the contract and, as such, the said covenant cannot be
enforced.
(c) The negative covenant relied upon
period of five years. The plaintiffs seek to enforce the negative covenant embodied in Clause 13.1 which has been quoted in para 2 above ... DEFENDANTS' CASE
6. The defendants urged three points :--
(i) The negative covenant embodied in Clause 13.1 of the contract sought to be enforced
other person or entity other than the First Petitioner.
The Negative Covenant:
5. The dispute that arises in these proceedings essentially focuses upon the provisions ... agreement with the third party.
7. Clause 19.2 contains a negative covenant. The negative covenant is that upon the expiry of the term
