Sunday, May 26, 2024

𝗝𝘂𝗱𝗶𝗰𝗶𝗮𝗹𝗗𝗿𝗲𝗮𝗺™

𝙰𝙵𝙵𝙾𝚁𝙳𝙰𝙱𝙻𝙴 & 𝙰𝙲𝙲𝙴𝚂𝚂𝙸𝙱𝙻𝙴

MODEL ANSWERSPECIFIC RELIEF

NEGATIVE AGREEMENT

Under what circumstances the court can grant an injunction to perform a negative agreement?

Section 42 of the Specific Relief Act, 1963, deals with the provisions of granting an injunction to perform a negative agreement. According to this section, if there is a contract between two parties and one part of contract is to do something and another part of contract is not to do an act, then if the contract is severable in nature and the court is unable to compel the parties to perform an act, then also the court can grant an injunction to perform the latter part of the contract.

Basically, according to this section, if the court is unable to grant specific performance of part of contract which is about to perform an act, then also the court can grant an injunction to perform another part of the contract which restrain the parties from doing a particular act.

But the court can grant an injunction only if the plaintiff performs his part of contract which is binding on him. If he fails to perform his part of contract, then in such a case, court will not grant an injunction. For example: – If A employees B for two years in his factory on the condition that within the period of two years B will not join any another factory which is competitive in nature.

But within above said period B leaves the factory of A and joins C’s factory, then in such a case, B cannot be compelled to do job in A’s factory but he can be restrained from joining C’s factory.

In the leading case of Niranjan K. Golikari vs. Century Spng. & Mgf. Co. Ltd., the Hon’ble court held that if there is a contract between employer and employee and according to that contract an employee is bound to serve the employer for 3 years and within that 3 years an employee cannot join another employer and if the employee leaves the employer within the period of 3 years and joins another employer, then in such a case, former employer can not ask for specific performance of that part of contract which states that employee has to serve the employer for the period of 3 years but he can claim an injunction and restrain the employee from joining another employer.

Moreover, in the leading case of Sunil Chand vs. Aryodaya Spng. & Weaving Mills Ltd., the Hon’ble court held that remedy given under section 42 of the Specific Relief Act, 1963, is not violative of Article 19(1)(g) of the Indian Constitution and if the employer restrains the employee from joining another employer according to the contract, that is legal and he can do so.

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