Messer Holdings Ltd vs Shyam Madanmohan Ruia & Ors

The Supreme Court addressed the enforceability of non-competition and right of first refusal clauses in corporate agreements, specifically referencing Clause 9 of the Share Purchase and Cooperation Agreement and Clause 6.1 of the Share Purchase Agreement. The Court held that MGG's attempt to acquire shares of BOCL without GGL's consent constituted a breach of the non-competition clause, emphasizing the binding nature of contractual obligations under the Indian Contract Act, 1872. The judgment reinforced the principle that parties must adhere to the terms of their agreements, leading to the conclusion that MGG's actions were impermissible under the existing contractual framework.