Court : Mumbai
Decided on : Jan-29-1991
Reported in : AIR1992Bom309; 1991(4)BomCR631; (1991)93BOMLR183
..... or fraud and only a particular stipulation is vitiated. it all depends upon facts of each case. the plaintiff is entitled to rely on sections 14 and 15 of indian contract act, 1872 as well as the general principles of law of economic duress now being recognised in english, american and australian legal system. whenever the duress results in a varied ..... to the plaintiff then and there before accepting the supply, the defendant no. i did not say a word. on this aspect, theexplanation to section 17 of the indian contract act, 1872 is of considerable significance. the said explanation reads as under:--'explanation silence as to facts likely to affect the willingness of a person to enter into a ..... law enunciated in english, american and australian judgments have no relevance in indian legal system. the indian contract act, 1872 is not exhaustive. the, above-referred principles are also relevant for interpretation and elucidation of law of coercion contained in section 15 of indian contract act, 1872. these principles was broadly approved by our supreme court in a different context in the case of central ..... 's case and cannot be ignored in a case pertaining to bank guarantee as bank guarantee is also a contract governed by the same provisions. section 15 of the indian contract act, 1872 defines 'coercion' as under:-- ' 'coercion' is the committing, or threatening to commit, any act forbidden by the indian penal code, or the unlawful detaining, or threatening to detain, any property, to .....Tag this Judgment!
Court : Mumbai
Decided on : Oct-11-1991
Reported in : 1992(2)BomCR125; (1992)94BOMLR620; 80CompCas740(Bom); 1992(2)MhLj1110
.....  73 comp cas 701. it was pointed out there that statutory provisions regarding guarantees were to be found in sections 124 to 147 of the indian contract act, 1872, and that specifically section 126 of the contract act dealt with guarantees. then, a reference was made to the supreme court decision in punjab national bank ltd. v. shri vikram cotton mills ltd. : [ ..... the bank issues the bank guarantee. thus, if a contract between two persons postulates that one of them shall furnish a bank guarantee, then the bank ..... guarantee requires concurrence of three persons. this being the situation, a contract of guarantee, because of section 126 of the contract act, has always to be considered as a tripartite document in india ...... by virtue of the provisions of section 126 of the indian contract act, 1872, every bank guarantee is a tripartite contract between the banker, the beneficiary and the person at whose instance ..... with what the supreme court held in punjab national bank's case  40 comp cas 927 on the meaning of a guarantee as defined in section 126 of the contract act. i, therefore, hold that the dispute regarding invoking the bank guarantee is referable to arbitration. 10. as regards the second question, the relevant portion of the bank guarantee .....Tag this Judgment!
Court : Delhi
Decided on : Jan-08-1991
Reported in : AIR1991Delhi298; ILR1991Delhi634
..... of gujarat that there was no bailment in that case nor could such bailment be inferred as s. 140 of the contract act, 1872 required that bailment could arise only under a contract between the parties. the court observed that this contention was not sustainable and that bailment is dealt with by the ..... defendants were responsible for any loss occasioned to the plaintiffs. u/ s. 148 of the indian contract act, 1872, a bailment is defined as the delivery of goods by one person to another for some purpose, upon a contract that they shall, when the purpose is accomplished, be returned or otherwise disposed of according to ..... contract act only in cases where it arose from a contract but it was not correct to say that there could not be a bailment without an enforceable contract. the supreme court observed that there was a legal obligation to preserve the ..... own goods of the same bulk, quality and value as the goods bailed. then, u/ s. 152, the bailee, in the absence of any special contract, is not responsible for the loss, destruction or deterioration of the thing bailed, if he has taken the amount of care of it described in s. 151 ..... and a common seal with power to acquire, hold and dispose of property both movable and immovable and to contract and shall by the said name sue and be sued. (sec. 3 of the act). second defendant, thereforee, is neither a necessary nor a proper party in these proceedings. the suit against .....Tag this Judgment!
Court : Karnataka
Decided on : Dec-05-1991
Reported in : ILR1992KAR1053; 1992(2)KarLJ583
..... bank of india v. premco saw mill; (iii) : air1929all72 , chakanlal and ors. v. kanhaiyalal ors. ; (iv) , gulam hussain v. faiyaz ali khan;24. section 127 of the indian contract act, 1872 ('the act' for short) reads thus:-'127. consideration for guarantee. - anything done, or any promise made, for the benefit of the principal debtor, may be sufficient consideration to the surety for giving ..... guarantee or even a past benefit can constitute a valid consideration for the sustenance of such an engagement.................'.'14. a reference to illustration (c) of section 127 of the indian contract act may be made. it reads:'a, sells and delivers goods to b. c afterwards without consideration, agrees to pay for them in default of b. the agreement is ..... must fulfil before the guarantee will attach, it may be entire of fragmentary and therefore divisible. the consideration for a promise of guarantee need not appear in writing.under the contract act, past consideration is also good consideration,26. in kali charan's case, it was contended that the surety bond was without consideration, because, the surety was not executed at ..... supported by consideration. even otherwise, it is contended by sri aswatharam, learned counsel appearing for the plaintiff-bank that as per the provisions contained in section 127 of the contract act, even the past consideration is a good consideration, it is also contended that the loans were granted on condition that the directors should stand as sureties and and it .....Tag this Judgment!
Court : Supreme Court of India
Decided on : Mar-15-1991
Reported in : JT1991(1)SC685; (1991)2MLJ21(SC); 1991(1)SCALE478; (1991)3SCC79; 1SCR885
..... khanna, the learned counsel for the appellant, is that the agreement is opposed to public policy and, therefore, it is void under section 23 of the contract act, 1872. according to him the agreement was to knock out the pubic property on a minimum price and that, therefore, the object of the agreement is opposed ..... a third person, namely, the rival decree-holder. accordingly, it was held that the agreement was fraudulent and that, therefore, void under section 23 of the contract act; same is the view expressed by the lahore high court in nand singh @ ghudda v. emperor :a.i.r. 1943 lah 101 and in hutchegowda v. ..... policy which tends to defeat any provision of law or purpose of law, it becomes unlawful and thereby it is void under section 23 of the contract act. section 23 is concerned with only the object or consideration of the transaction and not the reasons or motive which prompted it. public policy imposes certain ..... to public policy and is hit by section 23. we found no force in the contention. section 23 of the contract act adumbrates that the consideration or object of an agreement is lawful unless it is forbidden by law; or is of such a nature that, if permitted, ..... , the object of the agreement is not opposed to public policy, and therefore, it is not void under section 23 of the contract act.9. thus, on the facts of this case we have no hesitation to conclude that the impugned agreement between the appellant and the respondent is lawful .....Tag this Judgment!
Court : Mumbai
Decided on : Aug-21-1991
Reported in : 1991(4)BomCR15; (1993)IIILLJ135Bom
..... the provisions of a binding statute, viz. section 9-a of the industrial disputes act, 1947.9. mr. dharap's protestations to the contrary notwithstanding, i am of the view that the provisions of the indian contract act, 1872, cannot be ignored by the industrial court despite the wide latitude possessed by it ..... , and every agreement of which the object or consideration is unlawful is void. by applying the test laid down in section 23 of indian contract act for more than one reason, the industrial court was'justified in coming to the conclusion that the agreement was void and unenforceable. having arrived at ..... act provides that the consideration or object of an agreement is lawful, unless -(a) it is forbidden by ..... created under the provisions of the m.r.t.u. & p.u.l.p. act is contrary to statute, then the industrial court not only cannot ignore the provisions of section 23 of the indian contract act, but it is also obliged to follow the provisions thereof. section 23 of the said ..... withdrawn. this, in the view of the learned judge of the industrial court, amounted to a contravention of section 9-a of the industrial disputes act. consequently, the agreement between the bombay municipal corporation and the petitioner-union, being in contravention of the provisions of the applicable statute, was not .....Tag this Judgment!
Court : Kolkata
Decided on : Jul-22-1991
Reported in : AIR1992Cal47,(1992)1CALLT166(HC),96CWN485
..... of the vidyasagar samabaya abasan samity which are relevant for the purpose of deciding the appeal is reproduced below :--'6. (a) any indian capable of making contract under section 11 of the indian contract act, 1872, joining in the application for registration of the society or subsequently admitted to membership after registration in accordance with the rules and bye-laws, shall be a ..... is liable to be evicted. (2) the agreement between the parties is a contingent contract inasmuch as the same contemplated that to make the contract effective approval and/ or sanction by the cooperative society must be obtained and in view of sections 31 and 32 of the contract act, 1872 when the society did not approve the sale the agreement has failed. (3) ..... vague the court cannot specifically enforce such contract. (5) no explanation has been given as to why ..... the contract having been cancelled by the respondent same is no longer enforceable. (4) the contract itself being uncertain and .....Tag this Judgment!
Court : Delhi
Decided on : Apr-01-1991
Reported in : 1991(21)DRJ53
..... to that of the firm within a specified period or within specified local limits; and notwithstanding anything contained in section 27 of the indian contract act, 1872, such agreement shall be valid if the restrictions imposed are reasonable. . section 55(1) in settling the accounts of a firm after dissolution, the ..... firm within a specified local limits, and, notwithstanding anything contained in section 27 of the india contract act, 1872, such agreement shall be valid if the restrictions imposed are reasonable. '(16) under section 27 of the contract act every agreement by which any person is restrained from exercising a lawful profession, trade or business of ..... , however, appear to me that the plaintiffs themselves are not sure of their stand but let me set out the sections : indian contract act, 1872 : 'section 27. every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is ..... not be understood without the aid of the english law. this restraint clause has, thereforee, to be held to be void under section 27 of the contract act. (17) the word 'firm' in section 54 would mean here the competent builders. this firm continues. a unit of automobiles and motorcycles was ..... any kind is to that extent void. the 8 kms. restraint clause would appear to be per se void under section 27 of the contract act as it puts restriction on the party preventing him from exercising his lawful right of trade or business of the kind. the exception to the .....Tag this Judgment!
Court : Karnataka
Decided on : Jun-13-1991
Reported in : 1993ACJ877; AIR1992Kant301; ILR1992KAR392
..... . 77 : responsibility of a railway administration after termination of transit.-- (1) a railway administration shall be responsible as a bailee under sections 151, 152 and 161 of the indian contract act, 1872 (9 of 1872), for the loss, destruction, damage, deterioration or non-delivery of goods carried by railway within a period of seven days after the termination of transit :provided that where the ..... section 72 has been replaced by present sections 73 and 77. further the responsibility of the railway administration as a bailee under sections 151, 152 and 162 of the indian contract act, 1872, for the loss, destruction or deterioration or non-delivery of the goods carried by the railway has been limited to the period of seven days after the termination of transit ..... or deterioration of animals or goods delivered to the administration to be carried by railway shall, subject to the other provisions of this act, be that of a bailee under ss. 151, 152 and 161 of the indian contract act, 1872. (2) an agreement purporting to limit that responsibility shall, in so far as it purports to effect such limitation, be void, unless it ..... bear their own costs throughout. we make it clear that our decision docs not govern the case of liability of a railway administration as where-house keeper under any other contract or under any other law.21. after we pronounced the judgment, sri sadashivan, learned counsel for the respondent-plaintiff made an oral application under article 134-a of the constitution .....Tag this Judgment!
Court : Supreme Court of India
Decided on : Nov-25-1991
Reported in : AIR1992SC1604; 1992(40)BLJR178; JT1991(5)SC400; 1991(2)SCALE1363; (1992)1SCC647; Supp2SCR567; 1992(1)LC483(SC)
..... , 9 of 1872.(5) no compensation shall be awarded under this section unless the plaintiff has claimed such compensation in his plaint :provided that where the plaintiff has not claimed any such ..... 73 of the indian contract act for the principles of quantification and assessment of compensation does not obliterate this distinction.the provisions of section 21 seem to resolve certain divergencies of judicial opinion in the high ..... less liberal standards apply if what is sought by the amendment is the conversion of a suit for specific performance into one for damages for breach of contract in which case section 73 of the contract act is invoked. this amendment is under the discipline of rule 17 order 6, c.p.c. the fact that sub-section (4), in turn, invokes section ..... a contract between the parties which has been broken by the defendant, and that the plaintiff is entitled to compensation for that breach, it shall award his such compensation accordingly.(3) [omitted as unnecessary.](4) in determining the amount of any compensation awarded under this section, the court shall be guided by the principles specified in section 73 of the indian contract act, 1872 .....Tag this Judgment!