Category: Interim Relief

ISSUE:

Whether the 1994 agreement superseded the existing 1993 agreement?

Whether the 1993 agreement was in restraint of trade under section 27 of the Indian Contract Act, 1872?

RULE:

Section 42 Specific Relief Act, 1963- Where a contract comprises an affirmative agreement to do a certain act, coupled with a negative agreement, express or implied, not to do a certain act, in such a case, if the court is unable to compel specific performance of the affirmative agreement, it will not prevent it from granting an injunction to perform the negative agreement.

ISSUE:

Can appellate courts interfere with interlocutory orders passed by lower courts?

RULE:

Except in cases where it can be demonstrated that the first instance court's discretion was used arbitrarily, capriciously, or perversely, or in cases where the court disregarded well-established legal rules governing the granting or refusing of interlocutory injunctions, the appellate court will not substitute its own discretion for the first instance court's discretion.