Kandasamy V. Kandiah Et Al.,

1954 Present : Gunasekara, J., and Fernando, A.J.

P. KANDASAMY, Appellant, and S. R. KANDIAH et al.,
Respondents

S. C. 53-D. C. Jaffna, 5,896/M

Contract-Prohibitory statute-Illegality-Construction-Excise Ordinance (Cap. 42) -Sections 17, 24, 43, 45.

Where an agreement does not expressly contemplate the commission of a breach of any statutory provision, it can be held to be unlawful only if its performance would necessarily involve such a breach or if extrinsic evidence indicates the intention or the need to commit such a breach.

The 1st and 2nd defendants who possessed exclusive and non-transferable licences for the sale of arrack entered into an agreement of " partnership " with the plaintiffandthe3rddefendant. The agreement did not envisage that any one but the actual licensees would be responsible for the sale of arrack at taverns, and the object of the partnership was only to contribute capital and to share the profits and losses. When the plaintiff sued for an accounting and to recover his share of the profits, the trial Judge dismissed the action on the preliminary issue that the agreement was illegal and contrary to publ

Click Here to Read the rest of this document