JUDGMENT :

1. The present second appeal has been preferred assailing impugned judgment and order dated 16.02.2002 delivered by the court of learned Additional District Judge Xth, Lucknow in Regular Civil Appeal No. 107 of 1993 (Executive Officer, Nagar Palika, Lakhimpur Kheri Vs. M/s Krishna Chemicals) and impugned judgment and order dated 18.9.1993 delivered by the court of learned Civil Judge IVth, Lucknow in Regular Suit No. 231/1985 (M/s Krishna Chemicals Vs. State of U.P. and others).

2. Learned trial court has decreed suit of the plaintiff/respondent for recovery of amount of Rs. 77,936.30/-along with interest at the rate of 18% per annum. Learned first appellate court has dismissed appeal preferred by the appellant.

3. The present second appeal was admitted vide order dated 23.5.2002 on the following substantial questions of law:-

“1. Whether any invalid or illegal contract may be enforced against the parties concerned?

2. Whether section 97 of Nagar Palika Adhiniyam, (1916) and Section 70 of Indian Contract Act may be ignored while deciding Regular Civil Appeal.

3. Whether ti