U.N. Bhachawat, J.-1 This is an appeal by the plaintiff arising out of a suit for permanent injunction and damages being Civil Suit No. 39-B of 1977 in the Court of 5th Additional District Judge, Bhopal.

2. The plaintiff which is a limited company employed the defendant No.1 in its service as Research and Development Officer on the 15th March, 1971 on the terms and conditions agreed between the parties for a period of 5 years and thereafter until terminated at any time by either party giving to the other party six calendar months' notice in writing The terms relevant for the purposes of the decision of this appeal extracted from the contract are set out below:

"XX XX XX XX

2. This Agreement shall have effect from 15th March, 1971 and shall continue for a period of five years and thereafter until terminated at any time by either party giving to other party six calendar months' notice in writing Nothing herein contain shall be deemed to affect the employer's right to terminated this Agreement forthwith or at shorter notice as provided hereinafter and according to the Rules of the Company.

XX XX XX XX

5. If the employer sends the employee abroad for training or any other purposes and the employee leaves the services before expiry of the contract of service, the employee shall be bound to reimburse to the employer all the expenses incurred by them for such foreign visit. The amount of such expenses calculated by the employer shall be final and the employee shall have no right to question the same.

6. The employee shall execute a separate security, fidelity and indemnity bond and oath of allegiance in terms of the standard form of the employer simultaneously with the contract of service and the employee hereby agrees and undertakes to fully abide by the provision thereof.

7. The employee hereby agrees and undertakes with the employer as under:

XX XX XX XX

(c) To devote his whole time and energy exclusively to the business and interest of the employer and not without the previous consent in writing of the employer engage himself or be concerned directly or indirectly with any other trade business or occupation whatsoever, not to take or accept any office or position whether honorary or otherwise in any other firm, concern, enterprise, or any other person whomsoever and not to give any advice or assistance to any such firm, concern or enterprise or person:

XX XX XX XX

9. The employee agrees not to take any other employment or service without the previous consent in writing of the employer during the duration of this Agreement nor directly or indirectly take part or serve at any factory, industry or concern interested in the sale or manufacture of compressed wood, glass laminates, cast epoxies and all other associated and other activities carried on by the employer from time to time. It is further specifically agreed and declared that this negative covenant prohibiting the Employee from engaging himself as stated in this clause and at any place in this agreement shall apply not only during duration of the employment but also for a minimum period of two years from the date of cessation of service of the employee with employer."

After this employment, the defendant No.1 was sent, by the plaintiff to U.K. for training at the factory of its foreign collaborator M/s Parmali Limited Gloucester, U.K. and an agreement for this training regarding the terms and conditions agreed to between the parties, namely, the plaintiff and defendant No.1 was executed on the 1st of July, 1974. The relevant part of this agreement material for the decision of this appeal is set out below:

XX XX XX XX

"4. The Company will pay all costs as indicated above in consideration of which the Trainee has agreed to serve the company in India for at least Five (5) years from the date of his return to Bhopal in the grade of Rs. 2200-150-2950.

5. It is hereby agreed and declared that if the Trainee desires to leave the services of the Company before the completion of five years, he