Post-employment restraint clauses are void where they block future employment and no protectable confidential information is shown.

Post-employment restraints that bar an employee from joining a third party or dealing with present, past or prospective customers are void as a restraint of trade under Section 27 of the Indian Contract Act, 1872, unless confined to the period of employment. The court found no identified trade secret, technical know-how, or confidential information whose disclosure required protection, so no injunction could be justified on that basis. It also held that the relief sought was not specifically enforceable or capable of effective supervision, attracting the bar under Section 41(e) of the Specific Relief Act, 1963, read with Sections 14(c) and 14(d).

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Issues: Whether an ad interim injunction could be granted to restrain an employee from taking up employment with a third party and from allegedly divulging confidential information after cessation of employment.

Analysis: Post-employment restraints preventing an employee from taking up other employment or dealing with customers are hit by the prohibition against restraint of trade under Section 27 of the Indian Contract Act, 1872, unless they operate only during the subsistence of employment. A covenant restraining the employee for two years after termination from joining present, past or prospective customers was treated as void and contrary to public policy. No specific trade secret, technical know-how, or confidential information whose disclosure could be injurious to the employer was shown. The Court also held that the relief sought could not be specifically enforced or effectively supervised, attracting the bar under Section 41(e) of the Specific Relief Act, 1963, with Sections 14(c) and 14(d) also militating against such injunction.

Conclusion: The injunction was not grantable and the application was rejected; the plaintiff was left to seek damages, if otherwise available in law.

Ratio Decidendi: A post-employment restraint that prevents an employee from competing or accepting other employment is void as a restraint of trade, and an injunction will not issue to enforce such a covenant where no specific confidential information warranting protection is established.

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