PERCEPT TALENT MANAGEMENT PVT LTD Vs. YUVRAJ SINGH

JUDGEMENT

(1.) THIS appeal arises from the Judgment of the learned Single Judge dated 7-12-2007. By the said judgment, the learned Single Judge has dismissed the Arbitration Petition filed by the appellants under Section 9 of the Arbitration and Conciliation Act, 1996 ('1996 Act' for short).

(2.) ARBITRATION Petition under Section 9 of the 1996 Act was filed by the appellants No.1 and 2 (hereinafter referred to as 'the petitioners No.1 and 2) inter alia seeking an order that pending the hearing and final disposal of the arbitration proceedings in pursuance of the promotion agreement dated 12/12/03, the respondent No.1 be restrained from in any manner entering in to any negotiations/ agreement/ arrangement with any other party without complying with clause 19(2) of the promotion agreement dated 12/12/03. The learned Single Judge by relying upon the decisions of the Apex Court in the case of Percept D'Mark (India) (P) Limited Vs. Zaheer Khan & Another reported in 2006 (5) (SC) 35: 2006 (4) SCC 227 and other cases held that the negative covenant contained in clause 19(2) of the Promotion Agreement dated 12-12-2003 would prima facie amount to a clause in restraint of trade and, therefore, the relief sought in the Arbitration Petition cannot be granted. By observing that at this stage prima facie clause 19.2 cannot be regarded as a term independent of the existing contract, the learned Single Judge dismissed the Arbitration Petition. Challenging the said Judgment, the present Appeal is filed.

(3.) AS per Clause 17.1 of the Promotion agreement dated 12-12-2003, the contract between the parties was to come into force with effect from the close of business hours on October 16, 2003 and continue to remain in force for a period of 4 (four) years from the date of execution of the said agreement or till the conclusion of ICC World Cup, 2007, whichever is later, unless terminated earlier by the parties, in accordance with the terms of the said agreement.