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Report No. 57

4.12. Principle.-

In a Calcutta case,1 Asutosh Mookerjee J. after referring to all the available Indian case law and discussing the English and American cases bearing on the subject, wound up his judgment with the following quotation from a decision of the Supreme Court of the United States.2

"The law leaves the parties to such contract as it found them. If either has sustained a loss by the bad faith of a particeps crimins, it is but a just infliction for pre-meditated and deeply practised fraud which, when detected, deprives him of anticipated profits, or subjects him to unexpected losses."

This states succinctly the general rule as to the effect of illegality.

1. Raghupati Chatterji v. Nari Shinga Hari Das, AIR 1923 Cal 90.

2. Bartles v. Coleman, 4 Peter 184 (Baldwin J.).\



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