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PAMIDIGHANTAM SRI NARASIMHA, JOYMALYA BAGCHI
Vijaya Bank – Appellant
Versus
Prashant B Narnaware – Respondent
| 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
Joymalya Bagchi, J.
CIVIL APPEAL NO.11708 of 2016
1. Appellants have challenged judgment and order dated 20.08.2014 passed by the High Court quashing clause 11(k) of the appointment letter whereby the respondent-employee [Hereinafter, respondent] was required to pay liquidated damages of Rs. 2 lakhs in the event of leaving employment of the first appellant-bank [Hereinafter, appellant-bank] prior to three years and consequentially the appellant-bank was directed to refund the said sum to the respondent.
2. In 1999, respondent had joined the appellant-bank as a Probationary Assistant Man
Restrictive covenants in employment contracts requiring liquidated damages for premature resignation are enforceable and not inherently against public policy, provided they are reasonable and serve l....
Employment bonds can be void if they impose unreasonable restrictions, are coercive, or violate public policy, especially considering the unequal bargaining power between employers and employees.
The court established the validity of an employment restriction clause in an appointment letter, emphasizing the employer's right to impose such conditions under the relevant rules and regulations.
The court ruled that an undertaking obtained under duress from an employee to waive wage recovery rights is unconscionable and void, reinforcing the principle of equality in bargaining power.
Punitive action should not be taken against an individual without establishing or proving the allegations made against them through a proper enquiry and affording them a reasonable opportunity to def....
The main legal point established in the judgment is that the provisions of the act of 1989, Section 18, and Section 20 do not apply to a part-time job appointment on a contractual basis for a fixed p....
A suit for damages due to wrongful termination must include a declaration of wrongful termination to be maintainable; reinstatement cannot be granted without such a request.
The court ruled that an employment contract can be determinable, allowing for potential termination without an injunction, and that specific performance is permissible under amended provisions of the....
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