Non-Compete Clause Is Invalid Post-Termination Of Contract As It Results In Restraint Of Trade: Bombay High Court Sets Aside Injunction

The Bombay High Court set aside an injunction order that had previously enforced a non-compete clause in a post-termination agreement. The Court ruled that such a clause violated Section 27 of the Contract Act, which prohibits trade restraints. The case involved an arbitration appeal under Section 37 of the Arbitration Act, and the Court’s decision reinforced the principle that non-compete clauses post-termination are legally unenforceable as they contravene public policy