Full Judgment Text
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PETITIONER:
RATTAN CHAND HIRA CHAND
Vs.
RESPONDENT:
ASKAR NAWAZ JUNG (DEAD) BY L.RS. AND ORS.
DATE OF JUDGMENT12/02/1991
BENCH:
SAWANT, P.B.
BENCH:
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’.
HEADNOTE:
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
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policy.
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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]
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(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
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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]
JUDGMENT:
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
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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
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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
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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
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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
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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
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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.
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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
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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
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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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