Karnataka High Court Stays Ex-Parte Mandatory Ad-Interim Injunction order As it is Void Under Section 27 of Indian Contract Act, 1872

The Hon’ble High Court of Karnataka had stayed the blanket ex-parte injunction order passed by the Addl. City Civil and Sessions Judge, Bangalore restraining former employees from doing similar and identical business as that of their employer

Trueblue Supply Chain Pvt Ltd v. LCM Logistics Pvt Ltd. [Image Source: Freepic]

The Addl. City Civil and Sessions Judge, Bangalore, on 29.09.2022, granted an ex-parte ad-interim injunction restraining Trueblue Supply Chain Pvt. Ltd. and its directors from carrying out the business of carrying and forwarding agents in a suit filed by the former employer of Trueblue Supply Chain’s directors.

Being aggrieved by the order dated 29.09.2022, the directors of Trueblue Supply Chain approached the Hon’ble High Court of Karnataka seeking to quash the order of the Addl. City Civil Judge by invoking its supervisory jurisdiction. The Petitioners contended that there was no negative covenant in the appointment letter by the former employer that restrained them from doing any lawful business or employment post resignation or termination of services. During the course of arguments, it was argued that a blanket injunction order that led to shutting down of Petitioners’ business and profession is void under Section 27 of the Indian Contract Act, 1872 and violates the fundamental principles laid down in Article 19(1)(g) of the Indian Constitution.

The single-judge bench of the Karnataka High Court headed by Justice B. M. Shyam Prasad stayed the ad-interim injunction order for a period of 4 weeks and issued notice to the former employer, the Plaintiff in the suit instituted before the City Civil and Session Judge, Bangalore.

The Petitioners, Trueblue Supply Chain Pvt. Ltd. and its directors were represented by Senior Advocate Promod Nair for Khurana and Khurana Advocates and IP Attorneys led by Abhijeet Deshmukh, Arjun Santhosh and Deeksha Prakash.

Case Title: WP No. 22110/2022 (GM-CPC) Trueblue Supply Chain Pvt Ltd v. LCM Logistics Pvt Ltd.

Author: Arjun Santhosh, Senior Associate-Litigation, Khurana & Khurana Advocates and IP Attorneys. in case of any queries please contact/write back to us via email to chhavi@khuranaandkhurana.com or at  Khurana & Khurana, Advocates and IP Attorney.

Co-author: Deeksha Prakas. Associate , Khurana & Khurana Advocates and IP Attorneys.

Leave a Reply

Categories

Archives

  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • September 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010