Century Spinning
and Manufacturing Co. Ltd. it is contended that a negative covenant
operating during the period of contract of employment when the
employee ... interests where the negative
stipulation is not void. There is also nothing to show
that if the negative covenant is enforced the appellant
would
respondent Nos.39 to 42 from acting in breach of negative
covenant as pleaded in Paragraph 42 of the Plaint.
The reliefs in the suit ... disregarding the existing arrangement is a clear breach of the implied
negative covenant and a breach of implied covenant can be restrained by
injunction although
employers interests where the negative stipulation is
not void. There is also nothing to show that if the negative covenant
is enforced the appellant would ... interests where the negative stipulation is not void.
There is also nothing to show that if the negative covenant is enforced
the appellant would
this is an agreement in perpetuity; and (iii) there is a
negative covenant which prohibits the Arcelor Mittal Companies from
dealing directly with the Defendant ... said agreements would
clearly show that there is no negative covenant and it provides that in
certain cases, the Arcelor Mittal Companies (procuring companies
where it is to operate during the period of the contract.
Negative covenants operative during the period of the contract of
employment when the employee ... fall under Section 27 of the Contract Act. A negative covenant
that the employee would not engage himself in a trade or business or
would
that the respondents are right in contending that
enforcement of the negative covenants presupposes the existence of a
subsisting agreement. As noticed earlier ... assumption that the original agreement stood renewed including the negative
covenants contained in clauses 15 and 20 of the original agreement which
authorised only
three
places, namely, Mulshi, Umraj and Kolhapur. The agreement had a
negative covenant to the effect that after expiration of the term of the
franchise ... part of the mark, is in breach of the negative covenant contained in the
franchise agreement. The application for interim relief in this behalf,
originally
with the plaintiff.
10. The law with regard to negative covenant in employer-
employee contract is well-settled. The Supreme Court in Niranjan
Shankar Golikari ... held that the negative covenant
operative during the period of employment when the employee is
bound to serve his employer exclusively
highlighted. Payment received as non-competition
fee under a negative covenant was always treated
as a capital receipt till the assessment year ... loss of source of business; that
payment was received under the negative covenant
and therefore the receipt of Rs.50 lakhs by the
assessee from
Saregama Ltd vs The New Digital Media & Ors on 22 December, 2017
Author: Soumen
