Counselence Connect - Counselence

Counselence Connect

Our newsletter, Counselence Connect, released every week, gives a crisp, succinct update on changes in laws brought about by actions of legislature, government, and courts. Each Connect will be relevant for corporates and would not take more than 5 minutes to read.

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Validity of Restrictive Covenant & Liquidated Damages In Employment Contract

Reading Time: 4 minutes

The Supreme Court in Vijaya Bank and Another v. Prashant B Narnaware, held that a restrictive covenant in an appointment letter requiring an employee to serve for a minimum period and pay liquidated damages upon premature resignation is not in restraint of trade nor is it opposed to public policy or violative of Articles 14 and 19 of the Constitution.

May 26, 2025

Arbitration Clause in Invoice Binds Parties, if Unchallenged

Reading Time: 3 minutes

The Bombay High Court, in Sanjiv Manmohan Gupta case, held that if correspondence included an arbitration clause in the invoices and parties acted on them without protest, acceptance of the clause is implied. This Connect analyses the judgment and reasoning of the Bombay High Court.

May 19, 2025

Writ Maintainable To Safeguard Existing Right

Reading Time: 4 Minutes

The Allahabad High Court in Jai Prakash Associates Ltd. v. State of U.P., held that the writ jurisdiction can be invoked to safeguard existing rights and not for seeking to establish any new right. However, such jurisdiction may be resorted to where the controversy involves a public law element and challenges executive fiat rights on the grounds of being illegal, arbitrary and disproportionate.

May 12, 2025

Reappointment After Termination To Be Considered Afresh For Pension Calculations

Reading Time: 3 minutes

This Connect provides a brief overview of the judgement of the Bombay High Court in the V.N. Madhu case wherein it held that tenure of service provided by an unlawfully appointed employee would not be considered for the purpose of computing pension and gratuity benefits. Reappointment when made lawfully would be considered afresh for the purpose of computing pension and gratuity benefits.

May 5, 2025

Appointment of Arbitrator under Incomplete MOU

Reading Time: 4 minutes

This Connect provides a brief overview of the Calcutta High Court judgement in Greenbilt Industries case wherein it adjudicated on the appointment of an arbitrator for settling a dispute two corporate entities. The issue before the court was whether it must appoint an arbitrator based on a clause contained in a draft Memorandum of Understanding (MOU). The HC rejected the petition on the basis that the cause of action did not arise within the jurisdiction of the court based on the draft MOU.

Apr 28, 2025

Registration Cannot Be Refused Due To Lack Of Title Documents

Reading Time: 3 minutes

This Connect provides a brief overview of the judgement of the Supreme Court in the K. Gopi V. The Sub-Registrar & Ors., case wherein it struck down Rule 55(A)(i) of the Tamil Nadu Registration Rules, 1949 as it is ultra vires the Registration Act, 1908 and reiterated that registering authority cannot adjudicate on the seller’s title to execute the transfer and refuse registration on the same ground.

Apr 21, 2025

Implementing Court Orders

Reading Time: 2 minutes

This Connect provides a brief overview of the Bombay High Court judgment in the Arun Firodiya case wherein it dismissed the criminal writ petition filed by the chairman of Kinetic Engineering Ltd. challenging the lower court’s order for issuance of process against him for non-implementation of the court orders.

Apr 15, 2025

The Principle of ‘No Work No Pay’

Reading Time: 4 minutes

The Allahabad High Court, in the Shivakar Singh case, denied relief to an employee who was in jail for nearly three years and had claimed back wages for the period, on the principle that missing work due to incarceration does not entitle the employee to back wages. The writ petition seeking back wages was rejected. This Connect provides a brief overview of the judgment wherein it applied the “no work, no pay” principle.

Apr 7, 2025

Evidence Proving Employer-Employee Relationship

Reading Time: 2 minutes

The Kerala High Court (HC), in the case of Sakkir Hussain vs Binu Madhu, held that it can exercise jurisdiction over the order of compensation passed by the Commissioner when there is lack of evidence to prove the existence of an employer-employee relationship.

Mar 31, 2025

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