Yuvraj can enter into new contract subject to judgement

MUMBAI: Cricketer Yuvraj Singh can enter into a fresh contract with a new portfolio management agency, but it will be subject to judgement on appeal filed by Percept before the Bombay High Court.

Division bench of Chief Justice Swatanter Kumar and Justice J P Deodhar today reserved the judgement. However, the court did not restrain the Indian batsman from inking deal with the new agency, but said it will be subject to outcome of the present case.
   
Both Yuvraj's counsel as well as that of Globosport with which he is likely to sign a new deal agreed to this.
   
Percept Talent Management Agency has appealed against Justice Dhananjay Chandrachud's judgement, which held that Percept can not bind him by 'right of first refusal' clause. Such clause requires that on expiry of existing contract with Percept, Yuvraj must give the agency right to match an offer made by outside agency.
   
However, Yuvraj was not willing to abide by this clause, and Justice Chandrachud held that such a clause was illegal as per Indian Contract Act, as it puts restraint on trade.
   
Before the division bench, Yuvraj's lawyer Iqbal Chhagla cited Supreme Court's judgement in similar case against Zaheer Khan. "Post termination restraint is void, as per the law laid down by Supreme Court," Chhagla said, adding that Yuvraj's existing contract had come to an end on December 11.
   
However, Percept's argument is that first-refusal clause was a separate agreement itself, and it will not be hit by the Contract Act's provision that bars any term which restrains trade.