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2025 Supreme(SC) 831

PAMIDIGHANTAM SRI NARASIMHA, JOYMALYA BAGCHI
Vijaya Bank – Appellant
Versus
Prashant B Narnaware – Respondent


Advocates appeared:
For the Appellant(s) : Mr. Rajesh Kumar Gautam, Adv. Mr. Likivi K Jakhalu, Adv. Mr. Deepanjal Choudhary, Adv. M/S. Mitter & Mitter Co., AOR Mr. S.R. Singh, Sr. Adv. Mr. Sushant Kumar Yadav, Adv. Mr. Prateek Yadav, Adv. Mr. Gaurav Lomes, Adv. Mr. Prithvi Yadav, Adv. Ms. Asha Gopalan Nair, AOR
For the Respondent(s): Mr. Rajesh Kumar Gautam, Adv. Mr. Likivi K Jakhalu, Adv. Mr. Deepanjal Choudhary, Adv. M/S. Mitter & Mitter Co., AOR Mr. Rahul Chitnis, Adv. Ms. Shwetal, Adv. Mr. Aditya Khanna, Adv. Mr. Chander Shekhar Ashri, AOR Mr. Sanjay Kapur, AOR Mr. Surya Prakash, Adv. Ms. Divya Singh Pundir, Adv. Mr. Devesh Dubey, Adv. Ms. Shubhra Kapur, Adv. Mr. Sanjiv Goel, Adv. Mr. Annu Mishra, Adv.

Table of Content
1. challenge to liquidated damages clause (Para 1 , 2 , 3 , 4 , 5 , 6 , 7)
2. allegations of constitutional violations (Para 8)
3. validity of restrictive covenants (Para 10 , 11 , 12 , 13 , 14 , 16)
4. enforceability of restrictive covenants. (Para 15)
5. contracts and public policy concerns (Para 17 , 18 , 19 , 20 , 21 , 22)
6. liquidated damages necessity (Para 27 , 28 , 30 , 31)
7. liquidated damages due to premature resignations. (Para 29)
8. distinction from related case law (Para 32 , 33 , 34)
9. ruling on enforceability of clause (Para 35)
10. final order on appeals (Para 36 , 37)

JUDGMENT

CIVIL APPEAL NO.11708 of 2016

2. In 1999, respondent had joined the appellant-bank as a Probationary Assistant Manager. His service was confirmed in 2001. Thereafter, he was promoted to Middle Management Scale-II. In 2006, appellant-bank issued a recruitment notification for appointment of 349 officers in different grades. Clause 9 (w) of the recruitment notification reads as follows:-

3. Cognizant of the said condition, respondent applied to the post of Senior Manager-Cost Accountant at basic pay of Rs.18,240/- and was selected for the said post.

Clause 11(k) of the said letter reads a

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