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
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
damages on account of the breach of the aforesaid negative covenant contained in Clause (10) and, for permanent injunction restraining the respondent by himself ... company sought an interim injunction by way of enforcing the aforesaid negative covenant and a Singly Judges of the Delhi High Court initially granted
time attention to the service of the employers and also
a negative covenant preventing the employee from working elsewhere
during the term of the agreement ... MacDonald, ILR 36 Cal 354 as instances where such a negative
covenant was enforced, the learned Judges observed that Illustrations
(c) and (d) to Section
lead to the conclusion that the said contract also included a negative covenant and therefore, the said negative covenant could be given effect ... valid and binding contract or not and whether it contains a negative covenant or not and also as to whether the said agreement is contingent
consists of two covenants, namely a positive covenant undertaking to serve a particular person during a particular period and also a negative covenant agreeing ... These illustrations clearly show that in some cases a negative covenant can be implied and that in proper cases where there is a specific negative
service contract has been given to the employer.
The negative covenant as contained in the agreement dated 16 th January,
OMP No.151/2013 Page ... argued that in the present case the contract
containing the negative covenants is completely enforceable in law. The
contractual period has not expired. The negative
contentions of the parties, the learned single Judge held that the negative covenants in agreement could be enforced only during the pendency of the contract ... contract restriction. The learned single Judge further held that clause 6 - negative covenant of the agreement can be enforced only during the period of contract
