Bombay High Court
Bharat Barrel & Drum Mfg. Co. Pvt. Ltd.
Versus
Hindustan Petroleum Corporation Ltd.
Decided On:

Headnote:CONTRACT ACT, 1872

       Section 23

       See Iron and Steel Control Order, 1956, Clause 7

       IRON AND STEEL CONTROL ORDER, 1956

       Clause 7 - Contract Act, 1872, Section 23-Agreement-Transfer of steel received by plaintiff to defendant and vice versa received under allotment order Allotment order prohibiting transfer-Held, agreement is illegal.

       In the present case the letter of the plaintiffs clearly admits that there was a prohibition in law upon the transfer of steel received from Rourkela under allotments to any other party. The agreement contemplates the transfer, first, of steel received by the plaintiffs under allotments from Rourkela to the 3rd defendants and, thereafter, the transfer of steel received by the 3rd defendants under allotments from Rourkela to the plaintiffs. The agreement clearly, is illegal and the Court will not assist in its enforcement.

       For Citation : AIR 1989 Bom 170