NIRANJAN SHANKAR GOLIKARI vs THE CENTURY SPINNING AND MFG. CO. LTD.

The Supreme Court upheld the injunction against the appellant, affirming that negative covenants during the period of employment do not constitute a restraint of trade under Section 27 of the Indian Contract Act, 1872. The Court ruled that such covenants are valid unless they are unconscionable or excessively harsh. The injunction was deemed reasonable as it was limited in time, nature, and area, serving to protect the respondent company's interests without being overly broad or unnecessary.