No Agreement Can Empower An Employer to prohibitate an Employee to Join Similar Concern

During joining of an Employee have no option but to sign the job agreement, as there is personal & social instability pressure going inside, he may had no bargaining power and was in need of employment.
An employee, particularly, after the cessation of his relationship with his employer is free to pursue his own business or seek employment with someone else.

However, during the subsistence of his employment, the employee may be compelled not to get engaged in any other work or not to divulge the business/trade secrets of his employer to others and, especially, the competitors.

The law is well-settled that all contracts in restraint of trade are void and hit by Section 27 of the Contract Act. A judgment of this Court in Krishan Murgai v. Superintendence Co. of India, succinctly deals with the law on this point.

This stipulation was prima facie against public policy of India and an arm twisting tactic adopted by an employer against a young man who was looking for a job. 

Everybody has a right to strive for progress in career. The restrictions imposed upon the employee in the Agreement is thus void and unconscionable. Section 14(c) and (d) of the Specific Relief Act also prohibits grant of such injunctions. 

The balance of such convenience is more in favor of the employee who has to make his livelihood by seeking employment in the trade in which he has some experience. 

In the case of - Ambiance India Pvt. Ltd. vs Shri Naveen Jain on 16 March, 2005 Equivalent citations: 122 (2005) DLT 421, 2005 (81) DRJ 538  - No irreparable loss/injury would be caused to the plaintiff as its contract with M/s. Indigo Orient Limited, with whom the defendant is working, has already come to an end by efflux of time and it is not pleaded that the same has been renewed. The plaintiff can be adequately compensated in terms of money and may claim damages for the breach, if any. 

Accordingly, IA No.4894/2004 stands dismissed. 

Nothing stated herein shall be taken as an expression of opinion on the merits of the suit pending before the Court in as much as the observations made herein are tentative only.