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...the contract was ab initio void and therefore not in existence. In cases of frustration it is the performance of the contract which comes to an end but the contract would still be in existence for...treated as void and (c) that the arbitrators had no jurisdiction as the arbitration clause in the said contract perished along with the contract. The respondents, on the other hand, denied that the...Contract Act inter alia provides that a contract to do an act which, after the contract is made becomes impossible, or by reason of some event which the promisor could not prevent, unlawful, becomes void...
...differentiate between the terms “void” and “voidable”. Section 2(j) clearly provides as to when a voidable contract would reach the stage of being void. Undoubtedly, in cases, where the Court can come...to a conclusion that the contract is void without receiving any evidence, it would be justified in declining reference to arbitration but such cases would be few and isolated. These would be cases....(ii) The contract stands vitiated and is void ab initio in view of Clauses 29, 30 and 34 of the agreement dated 11-3-2010. Hence, the petitioner is not entitled to any payment...
.... That refers to a case where an agreement which was originally enforceable and was, therefore, a contract, becomes void due to subsequent happenings. In both these cases any person who has received any...Contract Act cannot help the plaintiff on the facts and circumstances of this case. Section 65 reads as follows:“When an agreement is discovered to be void, or when a...contract becomes void, any person who has received any advantage under such agreement or contract is bound to restore it, or to make compensation for it, to the person from whom he received it...
.... section 65 of the Contract Act does not apply to contracts which were ab initio void to the knowledge of the contracting parties but is applicable ...Contract Act is kept out only in those cases where the contract was known to be void at the time it was entered into. A distinction has been made between the cases where the contract is ...had the requisite license to possess and deal in rice. He assumed that the parties were aware of the position and, therefore, the contract was void ab initio and the...
...Section 65, Contract Act include also cases where agreements are void ab initio. It has therefore, to be held that agreements of this kind c..., and do not come within the category of the agreements which are' declared to be void under the Contract Act, they are, in effect, contracts; and. that, as these contracts have not subsequently become...was negatived by the lower Court on the ground that Section 65, Contract Act was not applicable to a case of this kind...
...:In Halsbury's Laws of England (4th Edn. Vol. 9) p. 297, para 430, it has been stated:“430. Severance of illegal and void provisions.—A contract wil...contract and the rest of the contract enforced without them. Nearly all the cases arise in the context of restraint of trade, but the following principles are applicable to contracts in general....First, as a general rule, severance is probably not possible where the objectionable parts of the contract involve illegality and not mere void promises. In...
...themselves. The question therefore arises whether the illegal or void parts may be separated or ‘severed’ from the contract and the rest of the contract enforced without them. Nearly all the cases arise...to them, in the above table; term (iii) contained in the contract of employment being repugnant to Section 4(3) of the 1972 Act and void under Section 23 of the Contract Act, must be replaced by...430, it is stated:“430. Severance of illegal and void provisions.—A contract will rarely be totally illegal or void and certain parts of it may be entirely lawful in...
...between the class of cases where the contract is void, though it may not involve any criminality, and the class of cases where the contract involves criminality. This distinction was pointed out by this.... 35 a month. Those cases, therefore, are of no assistance to the appellant. I agree with the learned District Judge in holding that the agreement alleged by the plaintiff is void.It is...agreement is discovered to be void, or when a contract becomes void, any person who has received any advantage under such agreement or contract is bound to restore it, or to make compensation for it...
...the arbitration clause itself. Another category of cases is where the substantive contract is expressly declared to be void under Section 1044 of the Indian Contract Act, 1872 where the agreement is...terms void and voidable are used loosely and interchangeably. The court ought to examine the plea by keeping in mind the provisions of the Indian Contract Act, 1872. In cases where the court comes to...a conclusion that the contract is void without receiving any evidence, it may be justified in declining the reference to arbitration in a few isolated cases. These would be cases where the court can...
...said transactions, being in the nature of wager, were void under Section 30 of the Indian Contract Act, the object was not unlawful within the meaning of Section 23 of the said Act...Hapur and therefore no question of illegality arises in this case. The law on the subject is well-settled and does not call for any citation of cases. To constitute a wagering contract there must be..., whether it is of partnership or otherwise. is unlawful if it is forbidden by law or the Court regards it as immoral or opposed to public policy and in such cases the agreement itself is void...
...an agreement is discovered to be void; or, (2) when a contract becomes void. In both these cases, if a person has received any advantage under such agreement or profited by such agreement or contract...such cases. Section 2(g) of the Contract Act defines that an agreement not enforceable by law is void, as distinguished from an agreement enforceable by law, which matures...contract that becomes void."
8. To elucidate the principle, as said above, it is unnecessary to refer to English cases when the decision depends upon the interpretation of statutory...
...”. Section 2(j) clearly provides as to when a voidable contract would reach the stage of being void. Undoubtedly, in cases, where the Court can come to a conclusion that the...contract is void without receiving any evidence, it would be justified in declining reference to arbitration but such cases would be few and isolated. These would be cases where the Court can readily...:“26. I am of the opinion that whenever a plea is taken to avoid arbitration on the ground that the underlying contract is void, the Court is required to ascertain the true nature of the defence...
...was capable of performance on the date of the agreement but becomes Impossible by supervening events. Such cases are cases where the contract ‘becomes’ void within the meaning of Section 65. The case...contract that becomes void. It is true that the section excludes cases where parties were actually aware that the contract was void on the date of the agreement. This follows from the very words in the..., 1872 operated to render such a contract void. Section 56 of the Act runs as follows:—“56. An agreement to do an act impossible in itself is void.A contract to do an act...
...extent be void. In other words, parties cannot contract against a statute.18. One of the earlier cases in which this question had arisen, was...any party thereto from any liability, under or in respect of any contract on the expiry of a specified period so as to restrict any party from enforcing his rights, is void to that extent...Contract Act. In such a case, the suit would lie in the court to be agreed upon by the parties.21. This Court has consistently taken the same view in several subsequent cases...
..., namely, (i) where the agreement is discovered to be void, and (ii) where a contract becomes void. Cases falling under the first category are those where even though the contract is void from the...contract. The cases falling under the second category, however, are those where the contract was valid at its inception but became void on account of a subsequent event.9. Where as a...proposition that S. 70 applies to all those cases where a party to a contract, which is void for being violative of S. 122, seeks restitution under the section...
...??? be void or when a contract becomes void. It may be that cases of contracts which are ab initio void fall within the ambit of this section. But the essential ingredient of this Section is that the...discovered to be void or a contract becomes void, but is a case of a contract which is void as being contrary to and prohibited by statute. The aggrieved plaintiff has brought this second appeal...an agreement is discovered to be void, or when a contract becomes void, any person who has received any advantage under such agreement or contract is bound to restore it or to make compensation for...
...question therefore arises whether the illegal or void parts may be separated or “severed” from the contract and the rest of the contract enforced without them. Nearly all the cases arise in the context of...:‘430. Severance of illegal and void provisions.—A contract will rarely be totally illegal or void and certain parts of it may be entirely lawful in themselves. The...voidable.27. Under Section 10 of the Contract Act, an agreement would partake the character of a contract when consideration is lawful and so also the objective. A void...
...cases : First, an agreement which is discovered to be void, and, secondly, a contract which becomes void. There is clearly a distinction between the agreement in the first case and the contract in the...Section 65 of the Contract Act.
5. The fact that the agreement by which the alienation was attempted was unlawful under the terms of the Act ...same principle which underlies Section 65 of the Contract Act. It is to be observed that Section 65 deals with, two...
...cases the contract is voidable and not void in one case and voidable in the other, because the construction cannot differ according to events. … Some Indian courts have held that a clause in a contract...decisions of this Court and Mulla's Contract Act. With utmost respect, we are unable to agree with the broad proposition that the absolute power of termination would be void. Referring to Madras case...reads:“If two parties stipulate that the contract shall be void upon the happening of an event over which neither party shall have any control then the contract...
...if the appellants had established frustration, it would not be as if, the contract was ab initio void. In cases of frustration it is the performance of the contract which comes to an end but the...frustration even then it would not be as if the contract was ab initio void and therefore not in existence. In cases of frustration it is the performance of the contract which comes to an end but the...became impossible of performance and ought to have been treated as void under s. 56 of the Contract Act; and
(c) that the arbitrators had no jurisdiction as the arbitration clause...