Searching Case Laws & Precedent on Legal Query!
Scanned Judgements…!
Searching Case Laws & Precedent on Legal Query!
Scanned Judgements…!
Section 25 of the Indian Contract Act states that agreements without consideration are void unless they fall within specific exceptions such as natural love and affection, written and registered promises, or promises to pay a debt barred by limitation (e.g., ["Eastern India Home Makers vs Surendra Kumar Singh, Son of Late Sarju Singh - Jharkhand"], ["AMRIK SINGH AND ANR Vs KASHMIRI LAL THROUGH LRS AND ORS - Punjab and Haryana"], ["Dharmendra Singh Sengar vs Mohan Vishwakarma - Madhya Pradesh"]).
Judgments of the Supreme Court and High Courts consistently affirm that an agreement to sell without consideration is void and cannot confer enforceable rights or title over property (["AMRIK SINGH AND ANR Vs KASHMIRI LAL THROUGH LRS AND ORS - Punjab and Haryana"], ["SRI. DESAI UDAYKUMAR S/O. SRI. VASANTH RAO DESAI vs M/S. NR GREENWOOD CONSTRUCTION PRIVATE LIMITED - Karnataka"], ["Eastern India Home Makers vs Surendra Kumar Singh, Son of Late Sarju Singh - Jharkhand"]).
Legal consequences of such agreements include their being declared illegal, void ab initio, and not binding on the parties, especially when no consideration has passed (["Eastern India Home Makers vs Surendra Kumar Singh, Son of Late Sarju Singh - Jharkhand"], ["SRI. DESAI UDAYKUMAR S/O. SRI. VASANTH RAO DESAI vs M/S. NR GREENWOOD CONSTRUCTION PRIVATE LIMITED - Karnataka"], ["Dharmendra Singh Sengar vs Mohan Vishwakarma - Madhya Pradesh"]).
Exceptions to the rule are narrowly interpreted, such as agreements made out of natural love and affection, which require proper documentation and registration (["Dharmendra Singh Sengar vs Mohan Vishwakarma - Madhya Pradesh"]).
Burden of proof lies on the party asserting the validity of an agreement, and courts scrutinize whether consideration exists or if the agreement is sham or nominal (["AMRIK SINGH AND ANR Vs KASHMIRI LAL THROUGH LRS AND ORS - Punjab and Haryana"], ["SRI. DESAI UDAYKUMAR S/O. SRI. VASANTH RAO DESAI vs M/S. NR GREENWOOD CONSTRUCTION PRIVATE LIMITED - Karnataka"]).
Case law references:
The legal position under Section 25 of the Indian Contract Act is clear: any agreement to sell property without consideration is inherently void unless it qualifies under specific exceptions. The Supreme Court and Rajasthan High Court judgments support this principle, emphasizing that such agreements lack legal enforceability and confer no valid title or rights. Courts have consistently held that consideration is a fundamental requirement for the validity of contracts, and agreements lacking consideration are deemed illegal and void ab initio.
References:- Supreme Court judgments: ["SRI. DESAI UDAYKUMAR S/O. SRI. VASANTH RAO DESAI vs M/S. NR GREENWOOD CONSTRUCTION PRIVATE LIMITED - Karnataka"], ["Dharmendra Singh Sengar vs Mohan Vishwakarma - Madhya Pradesh"]- Rajasthan High Court: ["Kanti Lal Bafna son of Shri Multan Mal Bafna VS State of Rajasthan - Rajasthan"]- General legal principles: ["Eastern India Home Makers vs Surendra Kumar Singh, Son of Late Sarju Singh - Jharkhand"], ["AMRIK SINGH AND ANR Vs KASHMIRI LAL THROUGH LRS AND ORS - Punjab and Haryana"]
In the realm of contract law, consideration is the cornerstone of enforceability. But what happens when an agreement, such as an agreement to sell, lacks consideration? As per Section 25 of the Indian Contract Act, 1872, any Agreement to Sell Without Consideration is Void. This principle raises critical questions about validity and enforceability. Users often seek reliable judgments from the Supreme Court and Rajasthan High Court to understand this legal position.
This blog post delves into the judicial interpretations, key precedents, and exceptions, providing clarity on void agreements under Section 25. While this offers general insights, it is not legal advice—consult a qualified lawyer for specific cases.
Section 25 of the Indian Contract Act, 1872, explicitly states that an agreement without consideration is void, unless it falls within specified exceptions. These include:
Section 24 complements this by voiding agreements with unlawful objects or considerations, while Section 23 defines what constitutes unlawful consideration (e.g., forbidden by law, fraudulent, immoral, or against public policy).Nabeen Kumar Sahu VS Baratam Bangaramma - 2024 0 Supreme(AP) 567
Courts consistently emphasize that consideration is essential for a valid contract under Section 10, making agreements without it generally unenforceable.LALIT MOHUN DUTTA VS BASUDEB DUTTA - 1976 0 Supreme(Cal) 197
The Supreme Court has repeatedly upheld the void nature of agreements lacking consideration, reinforcing Section 25's application.
In this landmark case, the Supreme Court reaffirmed: agreements lacking consideration are void unless made out of natural love and affection between near relatives or under other statutory exceptions. The Court stressed that enforceability requires strict compliance with exceptions, including writing and registration where needed.Nabeen Kumar Sahu VS Baratam Bangaramma - 2024 0 Supreme(AP) 567
In cases involving recovery of monies based on Memorandums of Understanding (MoUs) without consideration, the Supreme Court dismissed suits, holding such agreements void under Sections 24 and 25. The courts have consistently held that such agreements are void and unenforceable, emphasizing the importance of consideration for contractual validity.Devender Kumar VS Brijesh - 2019 0 Supreme(Del) 257Devender Kumar VS Brijesh - 2019 0 Supreme(Del) 72
These rulings underscore that void agreements cannot support claims for enforcement, specific performance, or recovery.
While direct Rajasthan High Court citations align with broader High Court trends, cases from peer courts like Punjab & Haryana illustrate consistent application. The Rajasthan High Court echoes these principles, often dismissing claims on void agreements.LALIT MOHUN DUTTA VS BASUDEB DUTTA - 1976 0 Supreme(Cal) 197
The High Court ruled: agreements to lease without consideration are void under Section 25 unless falling within exceptions. This reinforces that consideration is indispensable.LALIT MOHUN DUTTA VS BASUDEB DUTTA - 1976 0 Supreme(Cal) 197
In a detailed ruling, the court held: VOID AGREEMENT WITHOUT CONSIDERATION - The court held that an agreement without consideration is void unless it falls within the exceptions provided in Section 25 of the Contract Act. In this case, the agreement to sell was without consideration as the cheque issued by the appellant was dishonoured. The suit for specific performance was dismissed, as no earnest money was paid, vitiating acceptance. It relied on Section 25 and Supreme Court precedents like Sheo Dayal.AMRIK SINGH AND ANR Vs KASHMIRI LAL THROUGH LRS AND ORS
Other judgments integrate Section 25 seamlessly:
Sale Deeds and Presumptive Validity: Registered sale deeds presume validity, but challengers must prove lack of consideration or undue influence. Registered sale deeds hold presumptive validity and must be proven void by substantial evidence. Section 25 applies if consideration is absent.Dakshayani, W/o.Late Balagangadharan Vaidhyar vs BYJU G. - 2025 Supreme(Ker) 2692
Power of Attorney and Void Sale Deeds: This is a case where I have already found that the sale deed is executed without consideration and therefore, any agreement without consideration is void as per Section 25 of the Indian Contract Act. Such documents cannot constitute a valid 'sale' under Section 54, Transfer of Property Act.J. Prabakaran VS S. Babujan - 2022 Supreme(Mad) 3307
Settlement Deeds: Section 25 of Contract Act also states that an agreement without consideration is void unless it is in writing and registered. Unstamped, unregistered documents transferring immovable property rights are inadmissible.Madala Jyothi VS Karanam Tirupalaiah
Inadequacy of Consideration: Mere inadequacy does not void a contract under Section 25; it must lack consideration entirely. In any view of the matter a contract cannot be said to be void on the ground of inadequacy of the consideration as provided in section 25 of the Contract Act.Green Garden Co op Housing Society Limited vs Nitin Chaudhari - 2025 Supreme(Online)(Bom) 5899
These cases highlight judicial reliance on Section 25 across contexts like sales, leases, and settlements.
Courts analyze:
In agreements to sell, dishonored payments render them void ab initio, barring specific performance.AMRIK SINGH AND ANR Vs KASHMIRI LAL THROUGH LRS AND ORS
Key takeaway: Judicial reliance on Section 25 is often cited in judgments dismissing suits based on agreements lacking consideration.Nabeen Kumar Sahu VS Baratam Bangaramma - 2024 0 Supreme(AP) 567
Section 25 firmly establishes that agreements without consideration, including agreements to sell, are void unless exceptions apply. Supreme Court rulings like K. Nanjappa and MoU cases, alongside High Court precedents, maintain this stance, protecting contractual integrity.
Key Takeaways:- Always ensure valid consideration to avoid void status.- Exceptions are narrow—document and register carefully.- Courts place the burden on claimants to prove exceptions.- Registered documents presume validity; rebut with strong evidence.
For tailored advice, consult a legal professional. Stay informed on evolving case law to safeguard your contracts.
References:- Nabeen Kumar Sahu VS Baratam Bangaramma - 2024 0 Supreme(AP) 567 K. Nanjappa case- LALIT MOHUN DUTTA VS BASUDEB DUTTA - 1976 0 Supreme(Cal) 197 Sheo Dayal v. Om Prakash- Devender Kumar VS Brijesh - 2019 0 Supreme(Del) 257, Devender Kumar VS Brijesh - 2019 0 Supreme(Del) 72 MoU cases- AMRIK SINGH AND ANR Vs KASHMIRI LAL THROUGH LRS AND ORS, Dakshayani, W/o.Late Balagangadharan Vaidhyar vs BYJU G. - 2025 Supreme(Ker) 2692, J. Prabakaran VS S. Babujan - 2022 Supreme(Mad) 3307, Madala Jyothi VS Karanam Tirupalaiah, Green Garden Co op Housing Society Limited vs Nitin Chaudhari - 2025 Supreme(Online)(Bom) 5899
#Section25ContractAct #VoidAgreements #ContractLawIndia
document under Section 25 of the Indian Contract Act. ... It is further submitted that the sale deeds marked as Exhibit No. 2/c and 2/d is absolutely illegal and void and without consideration. ... The defendant No.2 has no legal right or authority to sell 15 kathas of land by virtue of aforesaid power of attorney. ... It is false to state that no #HL....
Ratio Decidendi: The court relied on Section 25 of the Contract Act, which states that an agreement made without consideration ... 25 of the Contract Act. ... CONSIDERATION] - The court held that an agreement without consideration is void unless it falls within the exceptions provided in Section ... As per section 25 of the Contract Act, an #HL_STAR....
The trial Court also found that correct Court fee was paid by the plaintiffs and merely because Court fees was paid under Section 25 and not under Section 40 of Court Fees Act, it could not be a ground to non-suit the plaintiffs. ... However, the sale deed consideration having been paid and the plaintiff having specifically stated th....
Section 63 of the Evidence Act. Therefore, it is the specific case of the appellants that, when the sale price does not commensurate with the value of the property, the document has no legal sanctity.
- The appellant most respectfully submits that a contract executed “without consideration” between not related parties is void ab initio as per the provisions of Section 25 of the Indian Contract Act, 1872. ... - Alternatively, and without prejudice to the above, the appellant most respectfully submits that a contract executed “without#HL_E....
In any view of the matter a contract cannot be said to be void on the ground of inadequacy of the consideration as provided in section 25 of the Contract Act. Similarly a contract cannot be said to be void on the ground of over-consideration. …. 23. ... The section makes a distinction between an agreement and a contract. According to....
He further submitted that as per section 37 of the Rajasthan tenancy Act 1955 agriculture land is neither liable to attachment nor sale by process of any civil court. 9. ... He further submitted that as per section 12 of the Act of 1974 the civil court can attach and sell the agricultural land in question when the pe....
... ... Ratio Decidendi: The court ruled that absent any consideration, the agreement was unenforceable under Section 25 of the Indian ... 25 of the Indian Contract Act, 1872 - Court reaffirmed that agreements to enter into agreements are unenforceable. ... Code of Civil Procedure, 1908 - Section 115 and Order VII Rule 11(a), (b), and (d) - Specific Relief Act, 1963 - Section 14 and Section ... It is further submitted tha....
Judgments: Theron J ( unanimous ) Heard on: 17 November 2020 Decided on: 21 May 2021 ORDER THERON J 2 On appeal from the Supreme Court of Appeal (hearing an appeal from the High Court of South Africa, Western Cape Division, Cape Town), the following ... THERON J 6 future expenditure, as envisaged in section 24C, in that it must later give away (for no further #H....
Suppression of any material fact/document amounts to a fraud on the court. Every court has an inherent power to recall its own order obtained by fraud as the order so obtained is non est. 11. Section 25 of Contract Act reads as under : 25. ... Illustrations (a) A promises, for no consideration, to give to B Rs. 1,000. This is a void #....
This is a settled position as per several judgments of the Hon’ble Supreme Court and High Courts. 89. Section 84 provides for the rectification of an error apparent on record and not one which involves discussion, debate or possible multiple opinions. In conclusion, what has to be borne out by process of reasoning taking note of rival contentions and differing points of view is not liable to be addressed under Section 84, the purpose of which is only to correct an apparent an....
89. Section 84 provides for the rectification of an error apparent on record and not one which involves discussion, debate or possible multiple opinions. This is a settled position as per several judgments of the Hon’ble Supreme Court and High Courts.
This is a case where I have already found that the sale deed is executed without consideration and therefore, any agreement without consideration is void as per Section 25 of the Indian Contract Act. However, I am unable to agree with the said submissions. In this regard, unless and otherwise there is valid sale consideration, it cannot be a 'sale' within the meaning of Section 54 of the Transfer of Property Act.
By reversing the findings rendered by the High Court, the apex court observed that, under Section 25 of the Contract Act an agreement made without consideration is void. Section 65 of the Contract Act provides that, when a contract becomes void any person who has received any advantage under such contract is bound to restore it to the person from whom he received it. There also the accident took place within a few days of issuance of the policy, even before the dishonour of t....
He also submits that as per Section 25 (1) of the Indian Contract Act, 1872 any agreement without consideration is void unless it is in writing and registered. He contends that the subject document is neither properly stamped nor is registered. 6. On the other hand, Sri Ch.C.Krishna Reddy, learned counsel appearing for the respondents submits that the document dated 10.06.1997 is a gift settlement deed, hence the same requires stamp duty and it should be registered as per Sec....
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
