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1986 Supreme(MP) 244

High Court Of Madhya Pradesh
T. N. SINGH
NIHAL SINGH - Appellant
Versus
RAM BAI - Respondents
Second Appeal 266 Of 1973
Decided On : 10/03/1986

Advocates Appeared:
ARUN MISHRA, D.K.KATARE

Headnote:(1) Contract Act, 1872-Ss. 65 & 23-both parties equally at fault-cannot invoke section 65 of the Act-the contract would be void ab initio. Whether or not the fact that a contract was void ab initio was known to both parties, if they were both at fault and if their conduct was repugnant to such public policy as was statutorily or constitutionally entrenched in the legal system it would not be open to anyone of them to derive any benefit from the transaction, vitiated by the immoral or unconstitutional act or conduct. [Para 9

       It is not possible for a party "in pari delicto" to invoke section 65 of the Contract Act and to found his action on that. It is also by now well-settled that when a contract is entered into by parties in contravention of any statutory prohibition, it would not be a case of contract "becoming" or of being ‘discovered to be" void: it would be a case of a contract which is void ab initio and indeed dehors section 23 et al, when the transaction is not allowed to take place. [Para 15

       (2) Constitution of India-Arts. 73 (2) & 23-contract in violation of Art. 13(2) is void ab initio -the contract is unenforceable-sale of a woman is prohibited and suit is not maintainable for refund of consideration paid for her purchase.

       When a contract is in violation of any constitutional injunction enshrined in Part III, such a contract would not only be void ab initio in virtue of Article 13 (2) of the Constitution but, the constitutional prohibition of Article 23, when it operates in any case, would act as a threshold bar to the transaction. Indeed, because, such a contract would not only be unenforceable, a suit based on such a contract, could not have been entertained by any Court of law acting under the Constitution which prohibits such a transaction from taking place. Because a Court set up under the Constitution cannot be party to violation of a constitutional injunction. If sale of a woman is considered "traffic in human beings", which is prohibited by Article 23 of the Constitution, how any action based on a contract, evidencing such a transaction, can at all be entertainable. AIR 1916 Cal 266; AIR 1949 Pat 250

       1 CLJ 261; AIR 1968 AP 375; AIR 1986 SC 1180; AIR 1963 SC 1295; (1877) 94 US 113; AIR 1984 SC 802; AIR 1963 SC 378; (1915) 3 K. B. 556; AIR 1920 Nag 157; AIR 1920 Nag 183; AIR 1936 Nag 15; AIR 1947 Bombay 392; AIR 1951 Pat 463; 1957 JLJ 966; AIR 1941 Pat 510; and AIR 1962 Pat 343 discussed. [Para 16

T. N. SINGH, J.

( 1 ) A woman was sold, mercifully not in an open market. Because the sale failed, the buyer has sued for refund of the consideration. Was sale not traffic in human beings, prohibited by Article 23 of the Constitution ? May be, the sale has not attracted, in terms, the Suppression of Immoral Traffic in Women and Girls Act, 1956, for short, the Immoral Traffic Act. But, the moot question is, whether the plaintiff is entitled to the relief claimed, invoking Section 65 of the Contract Act, for short, the 'act'.

( 2 ) BOTH the Courts below having decreed plaintiff's suit, defendant has appealed to this Court. The facts of the case lie within a narrow compass. The question, therefore, would also be whether such custom does at all survive after the Constitution case into force. Plaintiff's case was that she was Dangi by caste and had a son named Laxman who could not be married at an early age according to custom prevalent among people of Dangi caste. Because her son, who was aged 24 years, had lost all hopes of marriage, she contracted with the defendant to arrange a Dangi woman for her son who could be kept by him as his mistress. The defendant was paid Rs. 4,000/- for a woman whom he sent to plaintiff's house representing that she was a Dangi woman. For hardly 20 days, the woman had lived with her son when she got a message from the defendant that a warrant had been issued against the woman from the Court and she should, therefore, be sent back to the village. Thus, she went back, not to return ever thereafter. Later when it was discovered that the woman was a Bedhni (dancing girl), plaintiff asked the defendant to refund the amount, when he refused to do. Defendant denied all allegations and also pleaded that the contract was void and was unenforceable; and that the suit was not maintainable.

( 3 ) TWO Courts below concurrently held that the defendant had obtained Rs. 4,000/- from the plaintiff fraudulently on the condition of supplying a Dangi woman for her son. But invoking Section 65 of the Act, the Court of appeal below affirmed trial Court's decree, albeit relying on the decisions reported in P. R. Srinivasa Aiyar, AIR 1918 Mad 444, Alsidas Pannalal, AIR 1944 Nag 159 and Bhan Singh, AIR 1933 Lah 849 (2) to which I shall advert in due course.

( 4 ) IN this Court, learned counsel for the plaintiff/respondent has tried to support the decrees passed by the two Courts below on the basis of decisions above-referred of High Courts of Madras. Nagpur and Lahore and has cited two more decisions. Before I proceed to look at those decisions, I would extract below Section 65 of the Contract Act, because judicial opinion on the interpretation of the provision is equivocal and not unanimous : "65. Obligation of person who has received advantage under void agreement, or contract that becomes void - when an agreement is discovered to be void, or when a contract becomes void, any person who has received any advantage under such agreement or contract is bound to restore it, or to make compensation for it, to the person from whom be received it. "

( 5 ) IN P. R. Srinivasa Aiyar, (AIR 1918 Mad 444) (supra), one of the learned Judges constituting the Bench was definitely of the view that the words "discovered to be void" in Section 65 should be construed to mean "an agreement which was void ab initio, but not then known to the parties to be so, than an agreement of which the illegality must be taken to have been always known to them". The basis of the distinction is difficult to follow because the contract in that case was of "marriage-brokerage" which was held void under Section 23 of the Act. In Alsidas Pannalal, (AIR 1944 Nag 159) (supra), this decision was relied on and the Division Bench took the same view dissenting from the view taken by a Division Bench of Calcutta High Court in the case of Ledu, AIR 1916 Cal 266 even though the Calcutta case did not concern a contract for marriage-brokerage, as was the case before their Lor
















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