Can one coaching center force the teacher to not join the other coaching center after leaving the job?

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Shubham Budhiraja[1]



Mr. A resigned from the coaching center-I without giving 3 months’ notice and joined coaching center-II. Section 9 petition filed to restrain him to serve the coaching center-II unless 36 months lapsed as per the agreement. The court refused the prayer because the contract is determinable and specific relief of mandatory injunction cannot be allowed. Even, the Interim injunction/ restraint of teacher from working in coaching center-II cannot be allowed because negative clause of contract hit by section 27 of Indian contract act, the only remedy is damage against the teacher.[2]

 

(I)                 Employees are in the profession of teaching – the sweep and span of the injunction prayed for would render them incapable of employment avenues in their field of expertise viz. teaching/ in the same business as conducted by their former employer.

 

(II)               This would and practically render them idle and prevent them to earn livelihood, which must not be allowed, being contrary to Section 27 of the Indian Contract Act, 1872 [hereinafter “Contract Act”]. Side-lining professional(s) is likely to inflict their future prospects and would have adverse impact on their mental wellbeing.

 

(III)             Clause which restricts the Employees from being in employment with any entity which competes with the whole or any part of the business, is prima facie void under Section 27 of the Contract.


[1] Advocate, Delhi High Court, (LLB, ACS, BCOM(H), Shubhambudhiraja02@gmail.com

[2] Chem Academy v. Sumit Mehta, O.M.P.(I) (COMM.) 356/2021, Delhi High Court 

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