A bench comprising Justice H K Sema and Justice A R Lakshmanan, in their judgement on Wednesday, held that Zaheer could not be compelled to appoint Percept D'Mark as his agent if he had no faith or trust in it.
Zaheer had signed a contract with the company in the year 2000 for a period of three years with the contract ending in October 2003.
In July 2003 the company sent him a draft agreement for extending the contract for another five years. Zaheer turned it down saying he was not interested.
Percept D'Mark then approached the Bombay High Court in December that year saying Zaheer had been paid huge amounts of guarantee money every year under the contract and asked for an injunction on his signing a contract with a third party before fulfilling his obligations under their agreement.
The company, invoking a clause in the deal, had asked Zaheer to provide all the details of any contract he intended to sign with a third party and demanded that it get the first opportunity to offer the contract.
Zaheer had refused to abide saying the agreement was one-sided and unfair.
Percept D'Mark's appeal was granted by the High Court and Zaheer and the new company that wished to represent him filed separate pleas against the judgement.
The HC then granted Zaheer's petition against the judgement and Percept brought the matter to the apex court.
The SC bench, while dismissing its plea, said restraining Zaheer from acting upon the agreement entered into with the new firm would amount to compelling him to be managed by Percept D'Mark.
''Injunction in the present would result in irreparable injury and great injustice to the first respondent (Zaheer) which is incapable of being remedied in monetary terms as he would be compelled to enter into a relationship involving mutual faith, confidence and continued trust against his will,'' the bench said.
It, however, gave liberty to Percept D'Mark to proceed against Zaheer for breach of contractual terms before the appropriate forum and in accordance with the law.