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1957 Supreme(Mad) 42

P.V.RAJAMANNAR, PANCHAPAKESA AYYAR
Maniam Hiria Gowder – Appellant
Versus
Naga Maistry – Respondent


Advocates:
M. K. Nambiar and C. F. Louis for Appellant.
R. Desikan for Respondent.

Rajamannar, C.J.-We have no doubt whatever that the principle underlying the long catena of cases of which it is sufficient to refer to Velu Padayachi v. Sivasooriam1, and Viswanathan v. Namakchand Gupta2, will apply to this case, the principle being that an agreement of partnership which will entail a transfer of a licence or permit granted by the Government when there is an express provision prohibiting such a transfer is illegal and void ab initio. The case in Viswanathan v. Namakehand Gupta1, related to an agreement of partnership in respect of a cinema business and the decision in Velu Padayachi v. Sivasooriam2, arose under the Abkari Act. The doctrine on which these rulings are based is thus explained in Viswanathan v. Namakchand Gupta1. When a penalty is imposed for contravention of a provision of law that can be taken as an indication that the transaction which involves such a contravention is prohibited and is therefore illegal ; but when there is no imposition of a penalty, the question whether the contract is illegal should be determined on a consideration of the purpose behind the legislation. If the provisions are enacted for the purpose of revenue and in the interests




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