VIKRAMAJIT SEN, SIDDHARTH MRIDUL
Texem Engineering – Appellant
Versus
Texcomash Export – Respondent
Vikramajit Sen, J.
1. This Appeal assails the Order dated 13.8.2009 whereby the learned Single Judge had allowed the Application under Order VII Rule 11 of the Code of Civil Procedure, 1908 (CPC for short) filed by the Defendant/Respondent and consequently had rejected the Plaint. It is apparent to us that the learned Single Judge was unshakably influenced by a document purporting to be a "Settlement" between the parties which had been relied upon by the Plaintiff/Appellant and denied by the Defendant. The view of the learned Single Judge was that this document constituted an illegal contract inasmuch as the Plaintiff and his sister had agreed to give evidence favourable to the Defendant so that proceedings against the latter under the erstwhile Foreign Exchange Regulation Act (FERA), 1973 could be brought to an end. The learned Single Judge has pressed Sections 23 and 28 of the Indian Contract Act, 1872 to arrive at the conclusion that such a Settlement or "contract cannot form the basis of a legitimate claim by the Plaintiff against the Defendant". Support has been taken for this conclusion from Sudhindra Kumar Rai Chaudhuri v. Ganesh Chandra Ganguli, AIR 1938 Cal 840 and
Abdul Gafur v. State of Uttarakhand (2008) 10 SCC 97
T. Arivandandam v. T.V. Satyapal (1977) 4 SCC 467
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Inspiration Clothes and U v. Colby International Limited 88 (2000) DLT 769 (DB)
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Vishnu Dutt Sharma v. Daya Sapra (Smt.) (2009) 13 SCC 729
Liverpool and London S.P. and I Association Ltd. v. M.V. Sea Success I (2004) 9 SCC 512
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