A.ALAGIRISWAMI
Mac Laboratories (Private) Ltd. – Appellant
Versus
V. R. Nathan, Sole Proprietor of V. R. Nathan & Sons – Respondent
This is an appeal against an order of interim injunction passed by the Vth Assistant Judge, City Civil Court, Madras, in I.A. No. 9305 of 1966 in O.S. No. 3102 of 1966. The appellants are defendants in the suit. They are manufacturers of pharmaceutical products and also sole agents in India for foreign manufacturers of pharmaceutical products. The plaintiff and defendants entered into an agreement in May, 1955 which was to last for a period of 12 years from 1st April, 1955, with an option to renew for a like period at the end of the term. The expenses of the plaintiff’s organisation were to be met by the defendants. But it was not to exceed 15 per cent. of the gross sales. The plaintiff was to be entitled to a half-share in the profits made. It is not necessary to enter into great details as to the terms of the contract between the parties. The defendants proposed to take over the distribution with effect from 1st September, 1966 into their own hands and announced their decision by their letter dated 23rd August, 1966, purporting to terminate and revoke all their existing contracts with the plaintiff. The plaintiff filed the suit alleging that the defendant had no power to
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