Case Name : Percept D’mark (India) (P) Ltd vs Zaheer Khan and Another Case Reference: (2006) 3 SCR 146 : (2006) 4 SCC 227 Neutral Citation: Case Number: Civil Appeals 5573-74/2004 Court: Supreme Court Bench: 02 Coram: HK Sema, Dr AR Lakshmanan (Author) Date: 22.03.2006
A restraint beyond the term of a contract is void and not enforceable (Page 170, A-B) However, doctrine of restraint of trade does not apply during continuance of contract for employment; it only applies when the contract has ended This doctrine is applicable to all contracts, not only contracts of employment
Specific performance of contracts for personal service are impermissible (Page 170 D)
Consideration for interim injunction
Party being forced to enter into a contract with a party they do not wish to deal with, is not something that can be compensated (Page 170, F-H) Establishing prima facie case of breach of contract does not by itself entitle said party to injunction sought (Page 171, A-C)
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Refer also: Gujarat Bottling Co Ltd vs Coca Cola Niranjan Shankar Golikari vs Century Spinning and Mfg Co Ltd Hindustan Petroleum vs Sriman Narayan, (2002) 5 SCC 760
See also: A&C Act, 1996 - Section 9
PDF: Percept Dmark India vs Zaheer Khan, (2006) 3 SCR 146.pdf