P. N. BHAGWATI, M. U. SHAH, J.

( 1 ) THIS appeal raises an important question as to how far a negative stipulation in a contract of personal service can be enforced by the Court by grant of injunction. The facts giving rise to the appeal are few and may be briefly stated as follows. The plaintiffs are a partnership firm having their registered office in Ahmedabad and they carry on business inter alia as Managing Agents of diverse textile mills situate in Ahmedabad. One of those textile mills is Ashok Mills Limited Ahmedabad. The defendant is a Bachelor of Engineering of the Gujarat University and it is common ground that he was at the date of his appointment by the plaintiffs a fresh graduate from the University. By a letter of appoint ment dated 16th May 1962 the plaintiffs appointed the defendant as an Assistant Engineer on probation for a period of three months in Ashok Mills Limited Ahmedabad. On the expiration of the period of three months specified in the letter of appointment the probation was extended for a further period of three months and on the expiration of the said period the defendants appointment as an Assistant Engineer was confirmed and a contract dated 25th June 1

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