MAGANLAL RAMBHAI GANDHI Vs. AMBICA MILLS LTD

JUDGEMENT

(1.) This is an appeal by the original defendant. The admitted facts, giving rise to this litigation, are that the defendant who is a graduate of the Engineering College entered into a contract with the respondent plaintiff, the Ambica Mills Ltd., agreeing to serve the plaintiff for a period of five years from 1st November 1960. The agreement also provided that the defendant was not to serve anywhere else during that period. From 15th February 1961, the defendant left the service of the plaintiff and started service in another firm, namely, Swastik Textile Trading Co., on a better salary. The respondent-plaintiff therefore filed a suit, and, inter alia, claimed an injunction to restrain the defendant from serving the Swastik Textile Trading Co., or any other Company or person or firm directly or indirectly till 1st January 1965. The injunction prayed for by the plaintiff has been granted by the trial Court, and in appeal some slight variation was made in the form of the injunction. The variation was that the injunction would not, apply to service to any Company, firm or person outside India. With this modification, the trial Court's decree was confirmed. Hence this second appeal by the original defendant.

(2.) Before me, the learned counsel for the appellant has urged the following points:

(3.) There is no merit in the contention that the agreement between the parties is hit by Section 23 of the Contract Act. That section reads as follows: