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2003 Supreme(Bom) 29

IN THE HIGH COURT OF BOMBAY
Kochar R.J., J.
Star India Private Limited .... Plaintiff.
Versus
Laxmiraj Seetharam Nayak another.... Defendants.
Notice of Motion No. 2933 of 2002 in Suit No. 3452 of 2002, decided on 10-1-2003.
Advocates appeared :
Ravi Kadam with Sanjay Kadam i/b., Kadam Co., for plaintiff.
Kapil Sibal with Atul Sharma, S.V. Doijode, Akhil Sibal, P.A. Kabadi Ms. Minakshi Iyer i/b., Doijode Patharphekar Associates, for defendant No. 1.
I.M. Chagla with Atul Sharma, S.V. Doijode, Akhil Sibal, P.A. Kabadi Ms. Minakshi Iyer i/b., Doijode Phatarphekar Associates, for defendant No. 2.

Headnote:Code of Civil Procedure, 1908 - Order XXXIX, rules 1 and 2 - Service contract is not a warrant to bind the employee to the employer for ever - Fear of the employer that losing the employee would result in loss in business cannot be a ground to restrain the employee from leaving his present job and joining another job - No case made out even prima facie to restrain the employee on the ground of having learnt the trade secrets of the company - Even balance of convenience is not in favour of the employer because after being restrained, the employee will be a disgruntled lot which will not be conducive to the employer.

       Contract Act, 1872 - Section 8 and section 15, Specific Relief Act, 1963 - Freedom to contract must include freedom to occupation in public interest - In absence of any case made out that the employer will suffer heavy loss if the employee is not restrained from leaving his employ, no injunction can be granted.

       Contract Act, 1872 - Section 27 - Every employee gains some information and general knowledge about the company he is working with, but every such information or knowledge cannot be branded as trade secret or confidential information.

JUDGMENT - KOCHAR R.J., J.:---The plaintiff is a company incorporated under the Companies Act, 1956 presently known as Star India Private Limited. It carries on a business of acquiring copyrights in cinematrographic films, television serials, programmes etc. and it also produces and commissions production of television programmes for various television channels. The plaintiff also claims that it enjoys tremendous popularity amongst television viewers in India and abroad. The plaintiff has an exclusive contract/contracts with Satellite Television Asia Region Ltd., a company incorporated in Hong Kong for advertising and revenue collection in respect of its eight telecast channels.

2. The defendant No. 1 joined the plaintiff company as Area Sales Manager in January 1993 and the graph of his progress shows that he became Sales Manager, Vice President Advertising Sales, Senior Vice President Advertising Sales and on and from July 2002 he became Executive Vice President Advertising Sales under the renewed contract dated 27-6-2001 for a period of three years upto 30th June, 2004. The said contract incorporated several terms and conditions of service. His salary in July 2002 was Rs. 83,42,400/- p.a. It further appears that the aforesaid salary was excluding other perquisites such as company accommodation, chauffeur driven car club membership, mobile phone, laptop computer, telephone, medical expense reimbursement etc.

3. The 2nd defendant was subsequently impleaded as a party, as according to the plaintiff, the 2nd defendant induced breach of contract by the 1st defendant and purported to employ him inspite of the subsistence of the service contract dated 27th June, 2001 till 30th June, 2004. According to the plaintiff, the said 2nd defendant is carrying on a competing business with the plaintiff. The 2nd defendant was closely associated with the plaintiff in as much as that the news programmes for Star News Channel of the plaintiff were produced by the 2nd defendant. According to the plaintiff, the 2nd defendant disassociated with the plaintiff and intends to start its own business of news channel with the help of the 1st defendant by employing him.

4. The 1st defendant tendered his resignation from the service of the plaintiff by a letter dated 16-9-2002 intending to resign from the employment of the plaintiff. The 1st defendant requested the plaintiff by his subsequent letter dated 23-9-2002 to be relieved from employment by 15-10-2002. By a reply dated 26-9-2002 the plaintiff refused to accept the resignation sent by the 1st defendant and insisted that he should continue in service till 30th June, 2004 in accordance with the terms and conditions stipulated in the service contract. The 1st defendant by his letter dated 1-10-2002, however, asserted his absolute right to resign from employment and insisted that his resignation would become effective from the date of his letter and that he should be relieved from employment by 15-10-2002. It appears that the 1st defendant discontinued to report for work from 16-9-2002.

5. The plaintiff has approached this Court praying for a decree of declaration that the purported resignation of the 1st defendant to be illegal, null and void and not binding on the plaintiff and that the 1st defendant be restrained by a perpetual order and injunction of this Court from taking up or continuing in any employment or any office or engagement by himself or rendering any consultancy or any other service directly or indirectly with any other company, entity or person in a business similar to or competing with the plaintiff till 30th June, 2004. The plaintiff also sought similar injunction against the 1st defendant injuncting him from in any manner using or disclosing or divulging the confidential information and trade secret and knowledge relating to the plaintiff's business including the plaintiff's business plans, strategies, marketing policies, franchisee agreements, affiliates/joint ventures etc. as set

































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