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IN THE HIGH COURT OF DELHI AT NEW DELHI
MANMOHAN SINGH, J.
INDEPENDENT NEWS SERVICE PVT. LTD. - Petitioner
Versus
MR. ANURAAG MUSKAAN - Respondent
OMP No.151/2013
Decided On : April 02, 2013
Arbitration and Conciliation Act, 1996 - Restrictive Covenants - Sections 9, 27 of the Contract Act, 1872 - The court discussed the enforceability of negative covenants in an employment contract and the implications of the termination clause. The court found that the respondent violated the terms of the agreement by joining a competitor channel during the term of the contract. The court restrained the respondent from engaging in any on-screen solo services for a limited period.
Fact of the Case:
The petitioner, a leading media company, sought to restrain the respondent from providing services to any other television channel during the term of the contract and for a year thereafter. The respondent, a presenter, joined a competitor channel during the contract term and claimed that the restrictive covenants were void and unenforceable.
Finding of the Court:
The court found that the respondent breached the agreement by joining a competitor channel during the contract term. The court restrained the respondent from engaging in any on-screen solo services for a limited period. The court also held that the petitioner was not entitled to a permanent injunction to restrain the respondent from working with the competitor channel.
Issues: The issues involved the enforceability of restrictive covenants in the employment contract, the respondent's breach of the agreement, and the appropriate relief sought by the petitioner.
Ratio Decidendi: The court held that the respondent's actions violated the terms of the agreement, and therefore, restrained the respondent from engaging in any on-screen solo services for a limited period. The court also found that the petitioner was not entitled to a permanent injunction to restrain the respondent from working with the competitor channel.
Final Decision: The court restrained the respondent from engaging in any on-screen solo services for a limited period, but did not grant a permanent injunction as sought by the petitioner.
MANMOHAN SINGH, J.
1. The petitioner has filed the present petition under Section 9 of Arbitration and Conciliation Act, 1996 seeking inter alia, the following relief :
“a) That the respondent be restrained from in any manner engaging or providing services in violation of the terms of the Agreement to any other television channel during the term of the contract i.e. till 16th January, 2014 and for a period of one year thereafter i.e. 16th January, 2015 either as a presenter, host, anchor, reporter in any other manner in any on-screen role whatsoever or from permitting his name, image, voice or any other personal television channel either for shows or promos or advertising.”
2. The case of the petitioner is that the petitioner is one of the leading media companies in India and broadcasts and operates a 24 hour Hindi news channel by the name INDIA TV which recruits a large number of producers, anchors, reporters, technical personnel, editors, journalists etc. and spends aggressive amounts of monies on promoting the image, persona and personality of the Presenter and the same is categorized as “BRAND BUILDING EXPENSE”.
3. Mr. Anuraag Muskaan, respondent in the matter was recruited by INDIA TV. He joined INDIA TV on 16th January, 2012 as a Presenter. He entered into an agreement with the petitioner on the same date. His professional fee was fixed at Rs.95,833/- per month. The term of the agreement dated 16th January, 2012 was for two years effective from the date of telecast of the 1st show on the channel and renewable in writing with the mutual consent of the parties. He was required to perform his services from various offices of the petitioner throughout India including New Delhi and NCR.
4. After executing the agreement, he was involved in various programmes of INDIA TV including –
• Breaking News
• News specials like Super Fast 200, Top 20 Reporter, Non-Stop Super Fast, Newsline, Chak De Cricket etc.
These bulletins and programmes are aired in the morning band and also during the Prime Band. He got enormous popularity due to the fact that he was showcased in a prominent manner by the petitioner.
5. It is alleged that on 8th February, 2013 the petitioner received an e-mail from the respondent by which he requested the petitioner to relieve him of his duties with immediate effect. He was informed by the petitioner by mail that in view of terms of agreement, he cannot leave the job, thus his resignation was not accepted but he left the office with a request to accept the resignation alongwith a cheque for an amount of Rs.5,74,998/- on the table of one of the officials of the petitioner company. It is also alleged that he is now falsely claiming that his resignation was accepted by the petitioner company as the cheque for an amount of Rs.5,74,998/- left on the table of the official of the petitioner company.
6. The main terms stipulated in the agreement dated 16th January, 2012, are :
• That the term of the agreement shall be 2 years.
• The respondent has to render services as a presenter on INDIA TV on exclusive basis.
• The Presenter does not have any right to terminate the agreement.
• That the entire copyright vests in the petitioner company.
• The respondent shall not engage in any other during the currency of the contract and that the services are exclusively for INDIA TV.
• The Presenter shall not during the validity of this agreement allow his name, image or voice to be associated with any other television channel.
• The Presenter shall not take up any work of similar nature which is in competition with INDIA TV during the validity of the agreement.
• For a period of one year which after the termination of this contract or expiry of this contract the Presenter will not engage in a similar programme having a similar concept on any other television channel.
• The Presenter shall not take up any assignment contrary to the interest of India TV.
• The Presenter shall not take up any part time employment with any other
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