SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2007 Supreme(Bom) 1689

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORIDINARY ORIGINAL CIVIL JURISDICTION
D.Y. CHANDRACHUD, J.
VFS Global Services Private Limited. - Plaintiff.
vs.
Suprit Roy – Defendant.
NOTICE OF MOTION NO. 4388 OF 2007 in SUIT NO. 3171 OF 2007
Decided on: 10TH DECEMBER 2007.

Advocates:
Advocate appeared:
Mr. C.U. Singh, Senior Counsel with Mr. Ashish Kamath i/b. M/s.
V. Deshpande & Co. for the Plaintiff.
Mr. Sandeep Parikh with Mr. H.N. Jain i/b. Gordhandas & Fozdar
for the Defendant.

Headnote:Indian Contract Act,1872, S.27-Void agreement--Agreement in restrain of trade would not automatically become void if restraint is for a limited period and its clause prohibits an employee from disclosing commercial or trade secrets-However,cluse in agreement restraining employee from obtaining gainful employment elsewhere held as not fair and proper in view of mandate of S.27 of Contract Act.(Paras 10,11 and 13)

ORAL JUDGMENT:

The Notice of Motion has been taken out by the Plaintiff in the present case for enforcing a negative covenant contained in a contract of employment. The Defendant was employed by the Plaintiff on 12th July 1999 in the grade of Senior General Manager. On 2nd July 2001, he was transferred to the Visa Facilitation Services (VFS) Division and designated as General Manager. The terms and conditions of employment as originally envisaged continued to remain the same save and except as modified. Under the original contract of employment, the services of the Defendant could be brought to an end by either side with one month's notice or salary in lieu thereof. On 11th July 2003, additional terms and conditions were imposed by the employer. Among them was a condition that the Defendant shall not participate with any other company carrying on similar business and shall not commence similar business during the period of employment or for a period of two years thereafter.

2. A Memorandum of Understanding was thereafter entered into between the parties on 10th December 2003. Clauses 3 and 4 of the agreement provided for a covenant on confidentiality to the following effect :-

“ The Employee shall undertake that he will not make use of disseminate or in any way disclose any confidential information of the company whether during the period of employment or after, to any person, firm or business except to the extent of necessary negotiation, discussion and consultation with personnel or authorized representatives of the Company and for any purpose that the Company may hereinafter authorize in writing. The Employee shall treat all confidential information of the company with the same degree and care as it accords to its own confidential information and also represent that he will exercise reasonable care to protect the confidential information provided by the company.” Under clause 6 it was provided that in the event that the Defendant left service or was terminated from service, he shall not enter into service with any other employer who has a conflict of interest with the business of the Plaintiff for a period of one year without the permission of the Management. On 26th July 2006 the Plaintiff, upon a review of the conditions governing employment introduced a condition styled as a Garden Leave Clause to the following effect :-

“ The Company reserves the right to require you to remain away from work/employment for a period of 3 (three) months after termination or resignation of your services with the company. You shall agree to comply with all conditions that may be laid down by the Company at the time of such resignation or termination. The Garden Leave period shall commence after you have served the notice period and have ceased to be on the rolls on the Company. You shall be bound and undertake that you will not directly or indirectly, whether through partnership or as a shareholder, joint venture partner, collaborator, employee, consultant or agent or in any other manner whatsoever, whether for profit or otherwise carry on any business, which competes directly or indirectly with the whole or any part of the business of visa processing services or having/conducting business similar to the business conducted by the company for a period of 3(three) months after serving the notice period and ceasing to be an employee of the Company. You shall also be bound to comply with the conditions of Non Compete and Non Solicitation as set out in the terms and conditions. The Company shall pay you compensation which shall be equal to 3 (three) month's remuneration last drawn by you at the time of your termination or resignation. Please note that the company shall apply this clause at its sole discretion and you shall not claim it as a right.”

3. On 8th October 2007, the Defendant tendered his resignation from service and stated that while under the letter of appointment he was























Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top