Answer By law4u team
Injunction is a judicial remedy granted by a civil court that requires a party to do or refrain from doing a specific act. In the context of breach of contract, an injunction is primarily used to prevent the breach of a negative stipulation in a contract or to restrain a party from acting against the terms of the agreement. It is governed by the Specific Relief Act, 1963, which continues to apply even after the enactment of the new criminal laws like BNS or BNSS, as it deals with civil remedies. Meaning and Nature: An injunction is an equitable remedy, which means it is not granted automatically but is at the discretion of the court. It is meant to prevent irreparable harm that cannot be adequately compensated by monetary damages. Types of Injunctions Relevant to Breach of Contract: 1. Temporary (Interim) Injunction: Granted during the pendency of a case to maintain the status quo. It is regulated by Order 39 of the Civil Procedure Code, 1908, and granted when: There is a prima facie case, The balance of convenience is in the applicant’s favor, There is a likelihood of irreparable injury if not granted. 2. Permanent (Perpetual) Injunction: Granted by a decree after full trial when the court finds that the plaintiff is entitled to restrain the defendant permanently from doing certain acts that breach the contract. 3. Mandatory Injunction: A rarer form of injunction, where the court compels a party to perform a certain act — for example, undoing what has been wrongfully done in breach of the contract. This is provided under Section 39 of the Specific Relief Act. When is Injunction Granted in Breach of Contract Cases? An injunction may be granted when: The contract contains a negative covenant (a promise not to do something) — for example, a clause that an employee will not work for a competitor during the term of employment. The breach involves irreparable damage that cannot be compensated with money. Damages are not an adequate remedy — like in contracts related to confidential information, intellectual property, or exclusive distribution agreements. The contract is of a type that cannot be specifically enforced (e.g., personal service contracts), but a negative obligation can be enforced via injunction. Legal Basis (under Specific Relief Act, 1963): Section 36: Injunctions generally granted to prevent breach. Section 37: Classifies injunctions as temporary or perpetual. Section 38: Lays down conditions for granting perpetual injunctions, particularly when the defendant invades or threatens to invade the plaintiff’s right. Section 39: Allows the court to grant mandatory injunctions to compel performance of certain acts to prevent breach or rectify the situation. Illustrative Example: Suppose A contracts with B, a software developer, that B will work exclusively for A for 2 years and not for any competitor during that period. If B tries to join a rival company during this time, A can seek an injunction to restrain B from doing so. Although courts do not enforce contracts of personal service directly (i.e., they won’t force B to work for A), they can restrain B from working with the competitor during the contract term if such a negative covenant exists. Limitations on Grant of Injunction: Courts are cautious in employment contracts, especially post-termination restraints, as they may be viewed as restraint of trade under Section 27 of the Indian Contract Act, 1872. Injunctions are not granted where monetary compensation is adequate. If the plaintiff has not come to court with clean hands or has delayed unnecessarily, the injunction may be denied. Injunctions cannot be used to enforce illegal contracts. Recent Legal Trends: Indian courts, especially post-2018 amendment to the Specific Relief Act, have shown a shift toward granting specific performance and injunctions more liberally in commercial contracts, especially where the contracts involve public interest, strategic infrastructure, or are difficult to quantify in damages. However, the remedy remains discretionary, not automatic, and is subject to equitable considerations. Conclusion: Injunction in breach of contract cases is a powerful equitable tool used to prevent parties from acting contrary to contractual terms, particularly where damages would be insufficient. Governed by the Specific Relief Act and principles of equity, injunctions help ensure that the sanctity of contracts is preserved, especially where negative covenants or irreparable harm are involved. While not every breach gives rise to injunction, in suitable cases, courts use it to preserve rights and prevent unfair advantage or exploitation.
