The voidness of the negative covenant under Section 27 of the Indian Contract Act, 1872.

JUDGMENT :

V. Kameswar Rao, J.

1. The present petition has been filed with the following prayers:-

"It is, therefore, most respectfully prayed that the Hon'ble Court may be pleased to:

(a) restrain the respondents, their representatives, successors, lawful assigns, etc. from enrolling fresh students, collecting fee and/or or in any manner associating themselves in running centre for coaching students preparing for class XII Board, Medical, IIT -JEE and other competitive examination fee for a period of two years except for completion of courses of students admitted in Aakash Institute/ Aakash IIT -JEE;

(b) direct respondents to remove forthwith the sign boards, hoardings and all other material with the name of Aakash Institute/ Aakash IIT /JEE available at the centre i.e. first and second floor, Patel Chowk, Saili Road, Pathankot, Punjab;

(c) award costs in favour of petitioner; and

(d) pass any other order in favour of petitioner which this Hon'ble Court may deem fit and proper in the facts and circumstances."

2. It is the case of the petitioner and so contended by Mr. Thanai that petitioner is engaged in running coaching centre under the name and style of "Aakash Institute/ Aakash IIT -JEE" and preparing students appearing and qualifying for Medical, IIT -JEE and other competitive examination. It has developed goodwill and reputation as premium coaching chain across the country. On account of expertise in developing technique and method of imparting coaching and also the notes and study material / programme prepared by the expert, "Aakash Institute/ Aakash IIT-JEE" has acquired distinctive status. The immense goodwill and reputation being enjoyed by the petitioner is evident from the manifold increase of students succeeding in XII Board, Medical, IIT-JEE and other competitive examination.

3. He stated, respondents were appointed as franchisee, vide agreement dated June 30, 2016 by which, the respondents were permitted to run the centre at First and Second Floor, Patel Chowk, Saili Road, Pathankot, Punjab under the name and style of "Aakash Institute / Aakash IIT-JEE". It is the case of the petitioner that, as per the terms and conditions of the Franchise Agreement ('Agreement', for short), respondents were under obligation to pay 33% of the gross fee collected from the students to the petitioner, by demand draft on expiry of each fortnight i.e. 4th day and 19th day of English calendar month. They were also required to send statement of fee collected in a preceding month. The Agreement also stipulated that the respondents shall pay the teachers and other staff regularly appointed by the centre.

4. Mr. Thanai stated that as per the terms and conditions of the Agreement, agreed between the parties, in particular clause 5.5, respondents were under obligation to serve six months advance notice in writing to the petitioner in case it wishes to terminate / exit from the agreement. Respondents could exit from the agreement only on completion of courses for particular session. It was with the object of saving interest of students and that the study of any student is not affected in any manner that the agreement required respondents to give six months' notice before exiting the agreement. He submitted that during the subsistence of the Agreement, the petitioner provided study material to the respondents. According to him, the respondents violated the terms and conditions of the Agreement and did not pay commission to the petitioner despite receiving amounts / fee from the students. Since May, 2018 amounts payable to petitioner by respondents remained outstanding and after various reminders respondents have been paying paltry amounts.

5. That apart, he stated that vide e-mail dated May 08, 2020 respondents informed petitioner that centre at Pathankot where respondents were allowed to run the centre has been closed. According to him, this was in breach of the Agreement. Be that as it may, he also concedes to the fact that the petitioner vide lette