Rattan
Chand Hira Chand Vs. Askar Nawaz Jung & Ors [1991] INSC 33 (12 February 1991)
Sawant,
P.B. Sawant, P.B. Fathima Beevi, M. (J)
CITATION:
1991 SCR (1) 327 1991 SCC (3) 67 JT 1991 (1) 433 1991 SCALE (1)200
ACT:
Indian
Contract Act-Sections 23, 65, 69, 70 and 73(2)-Contract whereby one party is to
assist another in recovering property and sharing proceeds by using
influence-Whether opposed to 'public policy'.
HEAD NOTE:
Nawab Salar
Jung III expired on March
2, 1949 leaving behind
him no issue but a vast estate.
Several
persons came forward to be his heirs. One of the claimants, Sajjid Yar Jung,
did not have the wherewithal to establish his claim to a share in the estate.
He approached the plaintiff for financial help. An agreement was executed between
them according to which Sajjid Yar Jung agreed to return all amounts to be
advanced by the plaintiff and in addition to give him one anna share in the
amount that would be received by Sajjid Yar Jung from the estate. Sajjid Yar
Jung borrowed a total sum of Rs-75,000 under the agreement.
The
dispute was ultimately settled in the Civil Court by compromise between the various claimants.
According
to the plaintiff, the amount due to Sajjid Yar Jung was about Rs.60 Lakhs and
hence the plaintiff claimed Rs.3 lakh as one anna share in addition to the sum
advanced, i.e. Rs.75,000. The plaintiff filed the present suit for the recovery
of the total amount. The City Civil Court inter alia found that the agreement
was opposed to public policy as the object of the agreement was that the
plaintiff should wield his influence with Central and State Ministers to have
the Nawab recognised as the heir to the estate in return for his being given
one anna share in the amount to be received by the Nawab. The Court, therefore,
held that the agreement in question was not enforceable, and even the amounts
actually advanced could not be recovered by the plaintiff.
In the
appeal, the Division Bench of the High Court held that the agreement was one
whole agreement and hence the plaintiff was not entitled to recover even the
amount of Rs.75,000 which was actually advanced. The Division Bench also held
that the agreement was public policy.
328
This Court granted special leave only in respect of the said amount of Rs.75,000.
Before
this Court it was contended on behalf of the plaintiff that
(i) the
amount of Rs.75,000 could be separated from the other agreement or could be
treated differently;
(ii) if
the champertous nature of the agreement was ignored which it was legitimate to
do so in this country, there was no other ground of public policy on which the
agreement could be struck down;
(iii)
assuming that the agreement was a champertous one, it was neither immoral nor
against public policy, and even de hors the agreement, the appellant was
entitled to the said advance of Rs.75,000 under section 70 of the Indian
Contract Act. It was further urged that both the City Civil Court as well as the High Court had created a new head of public
policy to declare the agreement as void, although according to the relevant
statutory provisions as well as the decisions of the court, the agreement was
not void.
Dismissing
the appeal, this Court, HELD: Per Sawant, J.
(1) It
is apparent on the face of the record that the advance and the share in the
estate were parts of the same contract- one as a consideration for the other.
The two stand together and none can stand without the other. [333F]
(2) A
contract which has a tendency to injure public interests or public welfare is
one against public policy. [337D]
(3)
What constitutes an injury to public interests or welfare would depend upon the
times and climes.
The
social milieu in which the contract is sought to be enforced would decide the factum,
the nature and the degree of the injury. It is contrary to the concept of pubic
policy to contend that it is immutable, since it must vary with the varying
needs of the society. What those needs are would depend upon the consensus
value-judgments of the enlightened section of the society. These values may sometimes
get incorporated in the legislation, but sometimes they may not. [337E]
(4)
The legislature often fails to keep pace with the changing needs and values nor
is it realistic to expect that it will have provided for all contingencies and
eventualities. [337E-F] 329
(5) It
is not only necessary but obligatory on the courts to step in to fill the lacluna.
When courts perform this function undoubtedly they legislate judicially. But
that is a kind of legislation which stands implicitly delegated to them to
further the object of the legislation and to promote the goals of the society.
[337F]
(6) So
long as the courts keep themselves tethered to the ethos of the society and do
not travel off its course, so long as they attempt to furnish the felt necessities
of the time and do not refurbish them. their role in this respect has to be
welcomed. [337G] Ghurelal Parakh v. Mahadeodas Maiya & Ors., [1959] Suppl.
2 S.C.R. 406; Richardson v. Mellish, [1824] 2 Bing. 229; In
re Mirams, [1891] 1 Q. B. 594, referred to.
(7)
All courts are at one time or the other felt the need to bridge the gap between
what is and what is intended to be. The courts cannot in such circumstances
shirk from their duty and refuse to fill the gap. In performing this duty they
do not foist upon the society their value judgments. They respect and accept
the prevailling values, and do what is expected of them. [338D]
(8)
The courts will fail in their duty if they do not rise to the occasion but
approve helplessly of an interpretation of a statute or a document or an action
of an individual which is certain to subvert the societal goals and endanger
the public good. [338E]
(9)
The contract in the present case had been entered into with the obvious purpose
of influencing the authorities to procure a verdict in favour of the late Nawab
and was obviously a "carrier" contract.
To
enforce such a contract although its tendencies to injure public weal are
manifest is not only to abdicate one's public duty but to assist in the
promotion of a pernicious practice of procuring decisions by influencing
authorities when they should abide by the law. To strike down such contracts is
not to invent a new head of public policy but to give effect to its true
implications. [338F-G] In the matter of Mr. 'G', a Senior Advocate of the
Supreme Court, [1955] 1 S.C.R. 490, referred to.
(10) A
democratic society is founded on the rule of law and any practice which seeks
to subvert or circumvent the law at its very root. When the Court
discountenances such practice, it only safeguards 330 the foundation of the
society. Even assuming that the Court finds a new head of public policy to
strike down such practice, its activism is not only warranted but desired. [338G-H]
Per Fathima Beevi, J.
(1)
There is no doubt that the contract relating to the payment of the amount is
not severable from the agreement to promote the cause of Sajjid Yar Jung by
wielding the influence the plaintiff had. [339G]
(2)
Every agreement of which the object or consideration is unlawful is void. The
consideration or object of an agreement is unlawful when the court regards it
as opposed to public policy. [339G]
(3)
Public Policy is a principle of judicial interpretation founded on the current
needs of the community. The law relating to public policy cannot remain
immutable. It must change with passage of time. [339H-340A]
(4) A
bargain whereby one party is to assist another in recovering property and is to
share in the proceeds of the action and such assistance is by using the
influence with the administration irrespective of the fact that the persons
intended to be influenced are not amenable to such influence is against
protection and promotion of public welfare. It is opposed to public policy.
[340B]
CIVIL
APPELLATE JURISDICTION: Civil Appeal No. 740 of 1978.
From
the Judgment and Decree dated 18.3.1975 of the Andhra Pradesh High Court in
C.C.C.A. No. 106 of 1969.
G.A.
Shah, V.J. Francis and N.M. Popli for the Appellant.
S.B. Bhasme,
P.K. Pillai and Dilip Pillai for the Respondents.
The
Judgment of the Court was delivered by SAWANT, J. Although the leave granted by
this Court is limited to the question whether the plaintiff is entitled to an
amount of Rs.75,000 which according to him he had actually advanced and the
respondents had received for the purpose of prosecuting their litigation, and,
therefore, the issue to be answered lies within a narrow 331 compass, it is
necessary to state the relevant facts briefly to understand correctly the
significance of the question to be answered.
2. Nawab
Salar Jung III, a celebrity of the erstwhile State of Hyderabad expired on March 2, 1949 leaving behind him no issue but a
vast estate. As was expected, several persons came forward claiming to be his
heirs, and among them were Sajjid Yar Jung and Turab Yar Jung who claimed to be
his first cousins.
The Nizam
by a notification of May
9, 1949, appointed a
Committee to administer the estate of the late Nawab Salar Jung. On the merger
of the Hyderabad State, the Central Government by the Nawab Salar Jung Bahadur
(Administration of Assets) Act 1950, continued the Committee and also provided
that no suit or other legal proceeding for the enforcement of any right or
remedy in respect of any asset, shall be instituted in any court by any person
other than the Committee except with the previous consent of the Central
Government.
3. In
the meanwhile, on May
31, 1949, the Nizam
had already appointed a Commission to enquire into the question of succession
to the estate, and one of the questions referred to the Commission was whether
the Jagir of the late Nawab Salar Jung escheated to the Government and another
was the ascertainment of his heirs. The Commission was unable to proceed with
the inquiry as some of the claimants filed a writ petition in the High Court of
Andhra Pradesh challenging the jurisdiction of the Commission to enquire into
the question of succession.
The
High Court, by its decision of September 23, 1952 held that the Commission was not the proper forum for determining the
question of succession and directed that the management of the estate should
remain with the Committee until the question was settled by a Civil Court. The question was ultimately
settled by compromise between the various claimants including the Government.
The compromise was incorporated in a decree dated March 5, 1959 passed in a suit being Suit No. O.S. 13/58 which was filed
by some of the claimants. The present proceedings are an offshoot of the said
suit.
4. Sajjid
Yar Jung who claimed to be one of the first cousins of the late Nawab Salar
Jung did not have the wherewithal to establish his claim to a share in the
estate. He approached the plaintiff who was a businessman of Bombay for financial help to enable him to
establish his claim. According to the plaintiff, he agreed to do so and Sajjid Yar
Jung agreed to return all amounts to be advanced to him from time to time and
also to give the plaintiff one anna share in the amount that 332 would be
received by him from the estate. The agreement was executed in writing on June 27, 1952 which is the subject matter of the
present proceedings. Pursuant to this agreement Sajjid Yar Jung and his agents
drew large amounts from the plaintiff from time to time, totalling to about
Rs.75,000. Sajjid Yar Jung expired before the plaintiff received his share of
the amount as per the agreement but after Sajjid Yar Jung successfully
established his claim to the share in the estate. According to the plaintiff,
the amount due to Saijid Yar Jung from the estate was about Rs.60 lakhs and
hence he claimed Rs.3 lakhs as his share (calculated at one anna in a rupee) in
addition to the return of the sums advanced by him which as stated above was
Rs.75,000. The plaintiff, therefore, filed the present suit against the heirs
of Sajjid Yar Jung for accounts and for administration of his estate and for
distribution of the amount among the plaintiff and the defendants. He also
joined the receiver of the estate of Nawab Salar Jung Bahadur as one of the
defendants to the suit.
5. The
heirs of the late Nawab Sajjid Yar Jung (hereinafter referred to as "Nawab")
contested the suit and denied that the plaintiff had advanced any amounts to
the Nawab. They also raised other contentions including the contentions that
the suit was barred by limitation and that the agreement of June 27, 1952 was unenforceable in law as it was
in the nature of a champerty deal which was opposed to public policy and
forbidden by law.
6. The
City Civil Court where the suit was filed found that the agreement was genuine,
that it was admissible in evidence, that the amounts were advanced by the
plaintiff to the Nawab and that the suit was not barred by limitation.
However,
the Court found that the agreement was opposed to public policy as the object
of the agreement was that the plaintiff should wield his influence with Central
and State Ministers to have the Nawab recognised as the heir to the estate in
return for his being given one anna share in the amount to be received by the Nawab.
The Court, therefore, held that the agreement in question was not enforceable.
The
Court also held that even the amounts actually advanced by the plaintiff and
received by the Nawab could not be recovered by the plaintiff. Accordingly, the
Court dismissed the suit with costs. The plaintiff preferred an appeal to the High
Court.
7. The
Division Bench of the High Court held that the appeal had abated against all
the respondents on account of the failure of the plaintiff-appellant to bring
on record the heirs of one of the respondents, viz., Askar Nawab Jung who had
died pending the appeal. On 333 merits, the Bench also held that the agreement
was against the public policy. The Court further held that the agreement was
one whole agreement and hence the plaintiff was not entitled to recover even
the amount of Rs.75,000 which was actually advanced by him to the Nawab for
prosecuting the litigation. It is this decision which is challenged before us.
8. As
stated earlier, leave has been granted only in respect of the said amount of
Rs.75,000 and, therefore, we are concerned in the present appeal only with the
question as to whether the conclusion arrived at by the High Court, i.e., that
the agreement is opposed to public policy and the actual advance of Rs.75,000
was a part of the whole agreement and was, therefore, also tainted by the vice
of being contrary to public policy is correct.
9.
That the amount of Rs.75,000 was advanced by the plaintiff to the Nawab for
prosecuting his claim as a sharer in the estate, is not disputed. In fact, the Nawab
had to approach the plaintiff and had to enter into the agreement in question
for the express purpose of successfully prosecuting his claim. The plaintiff
cannot also contend that he had agreed to and did advance the said amount of
Rs.75,000 only because he wanted and expected the Nawab to be successful in the
prosecution of his claim. The advance was not a friendly loan or without
consideration. The agreement itself stipulated that on the successful
establishment of the claim, the Nawab would not only return the said advance
but would also pay to the plaintiff consideration for the said advance. That
consideration was agreed to be at the rate of one anna in a rupee. It is,
therefore, apparent on the face of the record that the advance and the share in
the estate, were a part of the same contract- one as a consideration for the
other. The two stand together and none can stand without the other. Hence, I am
not impressed by the contention advanced by Shri Shah for the appellant that
the amount of Rs.75,000 which was advanced by the appellant can be separated
from the other agreement or could be treated differently. I am in agreement
with the High Court that the agreement has to be treated as a whole and the two
parts, viz., the advance and the consideration for the same cannot be separated
from each other.
10.
The next question is whether the advance in question was opposed to public
policy. On this question, Shri Shah took us through the law on the subject, and
contended that both the City Civil Court as well as the High Court have created
a new head of public policy to declare the agreement as void, although
according to the relevant 334 statutory Provisions as well as the decisions of
the Court, the agreement is not void. In the first instance, he referred us to
the provisions of Sections 23, 65, 69, 70 and Part (ii) of Section 73 of the
Indian Contract Act. Section 23 states 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, would defeat the provisions of any law, or is fraudulent;
or involves or implies injury to the person or property of another; or the
Court regards it as immoral, or opposed to public policy. In each of these
cases the consideration or object of an agreement is said to be unlawful. Every
agreement of which the object or consideration is unlawful is void. He then
pointed out to us that the specific rule of English law against maintenance and
champerty have not been adopted in India and a champertous agreement is not per
se void in this country.
He
contended that before a champertous agreement is held to be void, it must be
shown that it is against public policy or against justice, equity and good
conscience. He contended in this connection that the Nawab admittedly did not
have sufficient finance to prosecute his claim though, he had a valid claim as
shown by the result of the litigation in that behalf. The plaintiff, therefore,
did not do anything wrong in advancing the amount in question to him to enable
him to establish his claim successfully since the Nawab could not have repaid
the amount unless he got a share in the estate. It was a legitimate exercise to
reduce the agreement to writing and to stipulate therein that the amount should
be repaid along with a share in the estate when the Nawab's claim was
established. The share in the estate being only one anna in a rupee could not
also be said to be on the high side and conscionable. The High Court has given
a finding in that behalf in favour of the appellant.
The
High Court has, however, held against the appellant only on the ground that the
agreement was against public policy.
He
strenuously urged that if the champertous nature of the agreement is ignored
which it is legitimate to do so in this country, there is no other ground of
public policy on which the agreement can be struck down.
11. In
this connection, he referred us to the decision of this Court in the matter of
Mr. 'G', a Senior Advocate of the Supreme Court, [1955] 1 SCR 490 where it is
reiterated that a champertous contract would be legally unobjectionable if no
lawyer was involved and that the rigid English rules of Champerty and
Maintenance do not apply in India. In that case, he pointed out to us that the
agreement was held unenforceable because it was agreement between a lawyer and
his client and it amounted to professional misconduct.
However,
this Court has also observed there that if such an agreement had been 335 between
a third party "it would have been legally enforceable and good. It may
even be that it is good in law and enforceable as it stands though we do not so
decide because the question does not arise; but that was argued and for the
sake of argument even that can be conceded. It follows that there is nothing
morally wrong, nothing to shock the conscience, nothing against public policy
and public morals in such a transaction per se, that is to say, when a legal
practitioner is not concerned. But that is not the question we have to
consider. However much these agreements may be open to other men what we have to
decide is whether they are permissible under the rigid rules of conduct enjoyed
by the members of a very close professional preserve so that their integrity,
dignity and honour may be placed above the breath of scandal".
12.
His second leg of the argument rested on the other provisions of the Indian
Contract Act to which I have made reference above. He contended that even
assuming that it was an agreement to receive consideration a share in the claim
that was to be established by the Nawab, it was not against public policy. He
contended that the amount in question was admittedly advanced and an advantage
of it was taken by the Nawab to establish his claim. He had, therefore, to
return the same to the appellant. In this connection, he referred to us to the
other provisions of the Indian Contract Act to which I have made a reference
earlier. Section 65 states that 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 69 states that a person who
is interested in the payment of moneys which another is bound by law to pay,
and who therefore pays it, is entitled to be reimbursed by the other. Section
70 declares that where a person lawfully does anything for another person, or
delivers anything to him, not intending to do so gratuitously, and such other
person enjoys the benefit therefore, the latter is bound to make compensation
to the former in respect of, or to restore, the thing so done or delivered.
Part (ii) of Section 73 states that when an obligation resembling those created
by contract has been incurred and has not been discharged, any person injured
by the failure to discharge it, is entitled to receive the same compensation
from the party in default as if such person had contracted to discharge it and
had broken his contract.
Shri
Shah also referred us to the provisions of Section 84 of the Indian Trusts Act,
1882 which reads as follows:
336
"84. Where the owner of property transfers it to another for an illegal
purpose and such purpose is not carried into execution, or the transferor is
not as guilty as the transferee, or the effect of permitting the transferee to
retain the property might be to defeat the provisions of any law, the
transferee must hold the property for the benefit of the transferor.
Relying
on these statutory provisions as well as the judicial decisions, he contended
firstly that assuming that the agreement was a champertous one, it was neither
immoral nor against public policy, and secondly even de hors the agreement, the
appellant is entitled to the said advance of Rs.75,000 under Section 70 of the
Indian Contract Act.
13.
The High Court referred to the evidence on record in appeal which had an
intimate bearing on the nature and the purpose of the agreement in question and
came to the following conclusions. The Court held that the plaintiff- appellant
was approached by the Nawab because being a businessman of eminence, he was
highly influencial. He had an access to the ministers and other worthies in the
Government. He was in a position to secure to the Nawab his claim by wielding
his influence. The Nawab knew about it and the plaintiff was also confident
about it. It'was immaterial that those whom he had approached were men of high
repute and great integrity of character. The fact that because of his
accessibility he could get things done through them or could make use of his
other standing with them to deliver goods to the Nawab, was enough to taint the
entire agreement with the vice of introducing corruption in public life. The
High Court also found that the advance which was made was in the nature of an
investment to share the booty. There was no reason for the plaintiff who was a
total stranger to the Nawab to undertake the financing in question which was in
those days on a considerably high- scale. No person who was not confident of
delivering the goods would have embarked on financing on such a liberal scale.
The plaintiff admittedly was a businessman who knew the value of each pie he
was spending. He was doing it as a fruitful investment with sure returns. That
is evident from the terms of the contract themselves since both the advance and
the consideration for which the advances were made form part of one integral
contract. On these facts which are on record, the High Court came to the
conclusion that the parties had entered into the agreement in question with the
avowed purpose that the plaintiff would use his then prevailing influence with
the worthies in the 337 Government to secure the gains for the Nawab. The Court
On this evidence came to the conclusion that the agreement was nothing but one
obviously made to lend services as a "go-between" or a
"carrier" for commission. This being so, it was against public
interest and detrimental to the health of body politic.
14.
The High Court further repelled the contention that either the City Civil Court or it was evolving a new head of public
policy by referring to a decision of this Court in Ghurelal Parakh v.
Mahadeodas
Maiya & Ors., AIR 1959 SC 781=(1959) Suppl. 2 SCR 406 and the decisions of
the English Court and to opinions of the
jurists/experts in treatises and essays on the subject of public policy.
The
Court also pointed out that this was by no means a new head of public policy
and it can come under the head "agreements tending to injure the
public" as mentioned at page 325 of Anson's Law of Contract (23rd ed).
15. I
am in respectful agreement with the conclusion arrived at by the High Court. It
cannot be disputed that a contract which has a tendency to injure public
interests or public welfare is one against public policy. What constitutes an
injury to public interests or welfare would depend upon the times and climes.
The social milieu in which the contract is sought to be enforced would decide
the factum, the nature and the degree of the injury. It is contrary to the
concept of public policy to contend that it is immatable, since it must vary
with the varying needs of the society. What those needs are would depend upon
the consensus value-judgments of the enlightened section of the society. These
values may sometimes get incorporated in the legislation, but sometimes they may
not. The legislature often fails to keep pace with the changing needs and
values nor is it realistic to expect that it will have provided for all
contingencies and eventualities. It is, therefore, not only necessary but
obligatory on the courts to step in to fill the lacuna. When courts perform
this function undoubtedly they legislate judicially. But that is a kind of
legislation which stands implicitly delegated to them to further the object of
the legislation and to promote the goals of the society. Or to put it
negatively, to prevent the frustration of the legislation or perversion of the
goals and values of the society.
So
long as the courts keep themselves tethered to the ethos of the society and do
not travel off its course, so long as they attempt to furnish the felt
necessities of the time and do not refurbish them, their role in this respect
has to be welcomed.
It is
true that as observed by Burrough, J. in Richardson v. Mellish, [ 1824] 2 Bing. 229 at 252 public policy is "an unruly
horse and 338 dangerous to ride" and as observed by Cave, J. in re Mirams,
[189] 1 QB 594 at 595 it is "a branch of the law, however, which certainly
should not be extended, as judges are more to be trusted as interpreters of the
law than as expounders of what is called public policy". But as observed
by Prof. Winfield in his article 'Public Policy in the English Common Law'
[1928]42 Harv. L. Rev. 76, 91]:
"Some
judges appear to have thought it [the unruly horse of public policy] more like
a tiger, and refused to mount it at all perhaps because they feared the fate of
the young lady of Riga. Others have regarded it like
Balaam's ass which would carry its rider nowhere. But none, at any rate at the
present day, has looked upon it as a Pegasus that might soar beyond the momentary
needs of the community." All courts are at one time or the other felt the
need to bridge the gap between what is and what is intended to be.
The
courts cannot in such circumstances shirk from their duty and refuse to fill
the gap. In performing this duty they do not foist upon the society their
value-judgments.
They
respect and accept the prevailing values, and do what is expected of them. The
courts will, on the other hand, fail in their duty if they do not rise to the
occasion but approve helplessly of an interpretation of a statute or a document
or of an action of an individual which is certain to subvert the societal goals
and endanger the public good.
16.
The contract such as the present one which is found by the City Civil Court as well as the High Court to have
been entered into with the obvious purpose of influencing the authorities to
procure a verdict in favour of the late Nawab was obviously a
"carrier" contract. To enforce such a contract although its
tendencies to injure public weal is manifest is not only to abdicate one's
public duty but to assist in the promotion of a pernicious practice of
procuring decisions by influencing authorities when they should abide by the
law. To strike down such contracts is not to invent a new head of public policy
but to give effect to its true implications. A democratic society is founded on
the rule of law and any practice which seeks to subvert or circumvent the law
strikes at its very root. When the Court discountenances such practice, it only
safeguards the foundation of the society. Even assuming, therefore, that the
Court finds a new head of public policy to strike down such practice, its
activism is not only warranted but desired.
339
The appeal is, therefore, dismissed. In the circumstances of the case, there
will be no order as to costs.
FATHIMA
BEEVI, J. I have had the advantage of perusing the judgment prepared by my
teamed brother, Sawant, J. I agree with him that the appeal must fail.
I wish
to say a few words. The only point that arises for decision in the appeal is
whether an amount of Rs.75,000 which the plaintiff claims to have advanced, is
recoverable from the respondents. The relevant facts have been stated by my
learned brother and it is not necessary to repeat the same. The City Civil Court found that the agreement on the
basis of which the plaintiff claimed relief was opposed to public policy.
The
object of the agreement according to the trial court was that the plaintiff
should wield his influence with Central and State Ministers to have Sajjid Yar
Jung recognised as the heir of late Nawab Salar Jung in return for his being
given one anna share in the assets to be received by Sajjid Yar Jung from the
estate of late Nawab Salar Jung.
The
High Court has confirmed that under the agreement the plaintiff was to promote
the cause of Sajjid Yar Jung in his being recognised as heir of the Nawab Salar
Jung and for the help thus rendered to receive a share of one anna in a rupee
out of the assets obtained. The plaintiff appears to have advanced an amount of
Rs.75,000 in promoting the cause of Sajjid Yar Jung as agreed upon. The help in
promoting the cause was much more than mere financing. On the evidence the High
Court found that the help Sajjid Yar Jung wanted from the plaintiff was to bring
to bear his influence with the Central and State Ministers and the request for
financial help was secondary to the request to represent the cause with the use
of influence. The High Court affirmed that the object of agreement was to
influence the Central and State Ministers and to advance and expand all amounts
necessary in that connection.
In the
face of the concurrent findings with which we agree, I have no doubt in our
mind that the contract relating to the payment of the amount is not severable
from the agreement to promote the cause of Sajjid Yar Jung by wielding the
influence the plaintiff had. Every agreement of which the object or
consideration is unlawful is void.
The
consideration or object of an agreement is unlawful when the court regards it
as opposed to public policy. If anything is done against the public law or
public policy that would be illegal in as much as the interest of the public
would suffer in case a contract against public policy is permitted to stand.
Public policy is a principle of judicial 340 interpretation founded on the
current needs of the community. The law relating to public policy cannot remain
immutable. It must change with passage of time. A bargain whereby one party is
to assist another in recovering property and is to share in the proceeds of the
action and such assistance is by using the influence with the administration,
irrespective of the fact that the persons intended to be influenced are not
amenable to such influence is against protection and promotion of public
welfare. It is opposed to public policy. In this view, we would hold that the
plaintiff cannot enforce the agreement to recover the amount from the
respondents.
ORDER
The appeal is, therefore, dismissed with no order as to costs.
R. S.
S. Appeal dismissed.
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