PERCEPT D'MARK (INDIA) PVT.LTD. vs ZAHEER KHAN

The Supreme Court addressed the validity of the right of first refusal under clause 31(b) of an agreement between Percept D. Markr (India) Pvt. Ltd. and Zaheer Khan, determining its legality under Section 27 of the Indian Contract Act, 1872. The Court held that such a provision is not in restraint of trade and is therefore valid, overturning the High Court's dismissal of the arbitration petition. The judgment clarifies that regulatory provisions like the right of first refusal do not contravene the principles of free trade as outlined in the statute.