Niranjan Shankar Golikari vs

The Century Spinning And Mfg. Co.

on 17 January, 1967

Presented By:Amit Kr. MBA 1st YearSection ‘A’

INTRODUCTION

Niranjan Shankar Golikari

(PETITIONER)

The Century Spinning And Mfg. Co.

(RESPONDENT)

• Section 27 in The Indian Contract Act, 1872

• Section 57 in The Indian Contract Act, 1940

• Article 136 in The Constitution Of India 1949

Section

Discussed

8. On 7 Nov., he informed the respondent company that he had resigned from October 31.

9.On 23 Nov.,received a letter that his resignation had not been accepted.

10. On 28 Nov.,replied that he had already obtained another job.11. The respondent company thereupon filed a suit in the court at Kalyan claiming Rs. 2410/- as damages being the salary for six months & a perpetual injunction restraining him from divulging any or allinformation under Clause 17 .

4. Before September 1964 No difficulty arose between them.

5. He remained absent from the 6-9 October 1964 without obtaining leave.

6. October 12, he applied for 28 days privilege leave form October 14.

7. Before that was granted he absented himself from the 14-31 October, 1964.

.

1. On 5 March,1963 joined the service as Shift Supervisor and was given training in the manufacture of tyre cord yarn.

2. The contract was for 5 years and during the period he would not work in similar capacity in any other concern and would maintain secrecy as to the technical aspects of his work.

3. A/C to Clause 6 of the contract he Shall not engage directly or indirectly in any business,if he will then he have to pay the company as liquidated damages.

Facts of

case

The appellant admit in court that he was employed as a Shift Supervisor,denied that his duty was only to supervise and control labour and to report deviations of temperature etc.

He also alleged that the said agreement was,unconscionable, oppressive and executed under coercion and challenged its validity on the ground that it was opposed to public policy.

Judgement

Petition

dismissed