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1991 Supreme(SC) 77

SUPREME COURT OF INDIA
(Andhra Pradesh High Court)
M. Fathima Beevi, P.B. Sawant
RATTAN CHAND HIRA CHAND, APPELLANT
VERSUS
ASKAR NAWAZ JUNG (DEAD) BY LRS AND OTHERS, RESPONDENTS.
Civil Appeal No. 740 of 1978
decided on February 12, 1991.

Advocates:
DILIP PILLAI, G.A.SHAH, N.M.POPLI, P.K.PALLI, S.B.Bhasme, V.J.Francis

Headnote:

Indian Contract Act - Section 23 – Claim of compensation – Jurisdiction - Andhra Pradesh challenging the jurisdiction of the Commission - Commission was unable to proceed with inquiry as some of the claimants filed a writ petition in High Court of Andhra Pradesh challenging jurisdiction of Commission to enquire into the question of succession - High Court by its decision held that Commission was not proper forum for determining the question of succession and directed that the management of estate should remain with Committee until question was settled by a civil court - Question was ultimately settled by compromise between various claimants including the government - Compromise was incorporated in a decree passed in a suit being which was filed by some of claimants - Present proceedings are an offshoot of the said suit – Held, High Court has confirmed that under the agreement plaintiff was to promote the cause of Jung in his being recognized as heir of Jung and for the help thus rendered to receive a share of one in a rupee out of the assets obtained - Plaintiff appears to have advanced an in promoting cause of Jung as agreed upon - Help in promoting the cause was much more than mere financing. On the evidence High Court found that help Jung wanted from plaintiff was to bring to bear his influence with the Central and State Ministers and request for financial help was secondly to the request to represent the cause with the use of influence - High Court affirmed that object of agreement was to influence Central and State Ministers and to advance and expend all amounts necessary in that connection - In face of the concurrent findings with which we agree court have no doubt in my mind that the contract relating to the payment of the amount is not severable from the agreement to promote the cause of Jung by wielding the influence the plaintiff had - Every agreement of which the object or consideration is unlawful is void - |Consideration or object of an agreement is unlawful when the court regards it an opposed to public policy - If anything is done against the public law or public policy that would be illegal inasmuch 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 interpretation founded on the current needs of community - 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 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 – Appeal dismissed

JUDGMENT

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 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 of 1958 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 wherewhithal 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 would be received by him from the estate. The agreement was executed in writing on June 27, 1952 which is the subject matter or the present proceedings. Pursuant to this agreement Sajjid Yar Jung and his agents drew large amounts from the plaintiff fog 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 Sajjid 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 jointed the receiver of the estate of Nawab Salar Jung Bahadur as one o

























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