The Supreme Court on Monday refused to restrain a singer from signing new contracts for his promotional activities on a plea by Delhi-based Frankfinn Aviation Services and its subsidiary Frankfinn Music.
A bench headed by Justice B N Agarwal refused to pass any restraint order against singer-cum-anchor Vikas Bhalla. However, it gave liberty to Frankfinn to withdraw the petition and file the appeal before a division bench of the Bombay High Court.
Seeking to restrain Bhalla of album "Mehek Teri" fame, from working as an artiste with anybody else till June 2010, Frankfinn alleged the artist had breached the terms of his three-year contract from June 2007 to June 2010.
The artist had entered into contracts for exclusively rendering his services to the company. In return, he was to be promoted through live shows and events organised by Frankfinn all over the country and abroad.
The group said it had scrupulously fulfilled its part of the obligations but Bhalla, after deriving benefits, had attempted to go back on the contract.
According to the company, it invested over Rs 40 lakh towards promoting Bhalla's first album "Mahek Teri."
It said the refusal to grant interim injunction would affect the sanctity of the contract and exclusivity clauses which were the very premise of all service contracts.
Neither party was in a disadvantageous position while bargaining the terms of the contract and there was no scope for duress or coercion, it added.
"The Bombay High Court (single judge) erred in refusing grant of interim injunction against the respondent (Bhalla) during the contract period, despite the petitioner (Frankfinn) having made out a prima facie case for such injunction," said the petition filed through Parekh and Company.