Contract - Whether The Restraint Of Trade Clause In Partnership Agreement Contravened s.28 Contracts Act 1950 ('The CA 1950')

Author:Jayadeep Hari & Jamil
Profession:Jayadeep Hari & Jamil
 
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CASE:

Millennium Medicare Services v Nagadevan Mahalingam [2016] 2 CLJ 36

BRIEF FACTS:

The appellant ("MMS") was running a business of healthcare centres ("the said business") with the principal place of business at Bandar Baru Permas Jaya, Johor. MMS was also running the said business at the branches of Taman Johor Jaya, Ulu Tiram and Jalan Mawar. The respondent ("Nagadevan") was a registered medical practitioner. Nagadevan had agreed to join MMS as a partner vide an agreement dated 1.11.2006 ("the said agreement"). The partnership was deemed to have commenced on the date of the said agreement. Under the said agreement, there was an express term restraining Nagadevan as a partner from practicing as a medical practitioner within the radius of 15km from any of MMS's branches. The restraint would apply to Nagadevan if he practices as a medical practitioner regardless by him setting up any medical practice by himself or as a partner or as an employee. The express term also stated that the restraint would be effective for three years from the date Nagadevan had ceased to be a partner of MMS. Subsequently, Nagadevan gave a three-month notice to resign and withdrew as a partner of MMS. As of April 2007, Nagadevan practised as a medical practitioner at a clinic which was within the radius of 15km from one of the MMS's branches. In consequence, MMS sought from the High Court, inter alia, for an injunction to restrain Nagadevan from practicing within 15km radius from MMS's branches, and for damages. The...

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