Injunction to perform negative agreement
57. Notwithstanding section 56, clause (f), where a contract comprises an affirmative agreement to do a certain act, coupled with a negative agreement, express or implied, not to do a certain act, the circumstance that the Court is unable to compel specific performance of the affirmative agreement shall not preclude it from granting an injunction to perform the negative agreement: provided that the applicant has not failed to perform the contract so far as it is binding on him.
(a) A contracts to sell to B for taka 1,000 the good-will of a certain business unconnected with business-premises, and further agrees not to carry on that business in Chittagong. B pays A the taka 1,000 but A carries on the business in Chittagong. The Court cannot compel A to send his customers to B, but B may obtain an injunction restraining A from carrying on the business in Chittagong.
(b) A contracts to sell to B the good-will of a business. A then sets up similar business close by B's shop and solicits his old-customers to deal with him. This is contrary to his implied contract, and B may obtain an injunction to restrain A from soliciting the customers, and from doing any act whereby their good-will may be withdrawn from B.
(c) A contracts with B to sing for twelve months as B's theatre and not to sing in public elsewhere, B cannot obtain specific performance of the contract to sing, but he is entitled to an injunction restraining A from singing at any other place of public entertainment.
(d) B contracts with A that he will serve him faithfully for twelve months as a clerk. A is not entitled to a decree for specific performance of the contract. But he is entitled to an injunction restraining B from serving a rival house as clerk.
(e) A contracts with B that, in consideration of taka 1,000 to be paid to him by B on a day fixed, he will not set up a certain business within a specified distance. B fails to pay the money. A cannot be restrained from carrying on the business within the specified distance.