The New South Wales Supreme Court ruled in favor of grocer company Metcash Limited's (ASX: MTS) position against its former supermarket chief.

In the court judgment, Justice Michael Ball decided to prevent Lou Jardim from performing any role with or invest in competitor SPAR Australia until the end of November. Ball considered that in all likelihood both former supermarket head and the Metcash thought well of the possibility of Jardim crossing to the other side.

Jardim met SPAR chief executive Leigh Carson in July, close to five months after his last day at work. The former Metcash head proposed an acquisition of 51 percent of the rival grocery wholesaler's shares.

Developing tensions between Jardim and Metcash chief executive Andrew Reitzer forced the former to stop working in February 5. Both parties began negotiations since then ending with the signing of a deed of release.

Under the deed of release, Metcash will be giving Jardim nine months' written notice of termination in June. Metcash subsequently gave the notice on June 1 and paid $2.24 million in incentives to Jardim.

The payment puts Jardim under “gardening leave” until March 2011. He is also obligated to act in accordance with Metcash's rules and regulations until then.