Agreement becomes void when the object of the agreement is unlawful.

M.Karpagavinayagam, J.: Nazir Maricar, the defendant in the suit has filed this appeal challenging the judgment and decree passed in favour of M/s.Marshall Sons and Company (India) Limited, Calcutta, the plaintiff, the respon- dent herein, directing the defendant/appellant to pay damages of Rs.30,000 to the plaintiff/respondent.

2. The plaintiff, the respondent herein filed a suit seeking for the relief of damages to the tune of Rs.30,000 with interest and for permanent injunction restraining the defendant from in any manner directly or indirectly employing himself with any other person and not to divulge or disclose or in any way making use any of the technical details, designs of the plaintiff to any other person.

3. The case of the plaintiff, in short, is as follows:

"The plaintiff Company was engaged in the manufacture of sophisticated construction and road making machinery. The defendant was employed in the year 1978 as Production Engineer. Since the Company was manufacturing sophisticated machines of exclusive design with foreign collaboration, the Company decided to depute some of its employees to proceed to West Germany for training. The defendant, one of the employees, was selected for training. So, an agreement was entered into on 18.9.1982 by which the Company agreed to meet the expenses of the defendant in the foreign country and the defendant after getting training agreed to serve the said Company for a period of five years after his return from the foreign training. As per the agreement, in case the defendant committed breach of agreement by going out of the Company before the expiry of five years, he is liable to pay liquidated damages of Rs.30,000, As agreed by the parties, the defendant was sent abroad by the Company at its cost and all the expenses of the defendant were met by the Company. After taking 25 days training, the defendant returned to India and joined duty on 23.10.1982. Thereafter, he was given due promotion. After some months, the defendant sent a letter of resignation on 9.4.1985. He sent another letter dated 13.5.1985 stating that he would not be reporting to work from 14.5.1985 as he already sent resignation letter. The plaintiff reminded him of the terms of the agreement. However, the defendant did not turn up for work from 14.5.1985. On 30.7.1985, the plaintiff issued notice calling upon the defendant to pay damages as agreed by him in the agreement dated 18.9.1982. He sent a reply dated 13.8.1985 containing unsustainable particulars. The plaintiff spent an amount of Rs.10,874 towards travel and Rs.24,022 towards expenses in the foreign country for training. This was done only with an expectation that the defendant’s knowledge and training would be utilized for the Company and he would serve the plaintiff for a period of five years after training. After training, he worked from 23.10.1982 till 13.5.1985 nearly for 18 months only. As per the agreement, he has to work up to 22.10.1987. The defendant after resignation is trying to get employed under the plaintiff’s competitor for using his knowledge acquired in the training given by the Company. Hence, the plaintiff filed the suit for recovery of damages of Rs.30,000 and also for permanent injunction".

4. The case of the defendant is as follows:

"The agreement dated 18.9.1982 is not enforceable as the clause about liquidated damages for the sum of Rs.30,000 was not voluntarily agreed to. Sec.27 of the Contract Indian Act makes such an agreement void. Taking advantage of the five years bondage, the defendant was subjected to unfair labour practice. Though the defendant was promoted after training, he was not given due salary. On the other hand, his juniors were promoted and they were sent to foreign countries. Thereafter, more salaries were given to them. Therefore, he sent the resignation letter on 9.4.1985 and again on 13.5.1985, he sent an intimation that he would not be reporting for work from 14.5.1985. Even assuming that there is an enforceabl

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