https://www.taxtmi.com/caselaws?id=770850 SC upheld liquidated damages clause in public sector bank's employment contract requiring minimum service tenure. HC had quashed the clause as violating constitutional provisions and contract law principles regarding restraint of trade and public policy. SC held that in liberalized economy, public sector undertakings need efficient retention policies to compete with private players. The restrictive covenant was reasonable considering bank's recruitment constraints under constitutional mandate requiring fair competitive procedures. HC's mechanical reliance on precedent without considering factual matrix was erroneous. Appeal allowed, HC judgment set aside. en-us Wed, 14 May 2025 00:00:00 +0530 Sat, 17 May 2025 08:39:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=770850 SC upheld liquidated damages clause in public sector bank's employment contract requiring minimum service tenure. HC had quashed the clause as violating constitutional provisions and contract law principles regarding restraint of trade and public policy. SC held that in liberalized economy, public sector undertakings need efficient retention policies to compete with private players. The restrictive covenant was reasonable considering bank's recruitment constraints under constitutional mandate requiring fair competitive procedures. HC's mechanical reliance on precedent without considering factual matrix was erroneous. Appeal allowed, HC judgment set aside. Case-Laws Indian Laws Wed, 14 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=770850