MANU/PR/0049/1903 Equivalent Citation: 7CWN441, 30M.I.A.114 BEFORE THE PRIVY COUNCIL Decided On: 04.03.1903 Appellant: Mohori Bibee an another V!" Rep!ndent: #har$oa! %ho!e Hon&ble 'u(e!)Cora$: "!#d Macna$%ten Macna$%ten,, "!#d "!#d Da&e' Da&e',, "!#d "!#d "indle' "indle',, (i# (i# )!#d N!#t%, N!#t%, (i# (i# And#e* (c!+l (c!+le e and (i# A#t%# Wil!n *ub+e,t: Contra,t Cat,h -or! Mentione IN .,t!)Rule!)Orer!: Indian C!nt#act Act, 1-7 (ecti!n 10, Indian C!nt#act Act, 1-7 (ecti!n 11, Indian C!nt#act C!nt#act Act, 1-7 (ecti!n (ecti!n 1-3, Indian Indian C!nt#act C!nt#act Act, 1-7 (ecti!n (ecti!n 1-4,Indian 1-4,Indian C!nt C!nt#a #act ct Act, Act, 1-7 1-7 (e (ect cti! i!n n 19, Indi Indian an C!nt C!nt#a #act ct Act, Act, 1-7 1-7 (e (ect cti! i!n n , Indi Indian an C!nt C!nt#a #act ct Act, Act, 1-7 1-7 (e (ect cti! i!n n 4, Indi Indian an C!nt C!nt#a #act ct Act, Act, 1-7 1-7 (e (ect cti! i!n n 4, 4, Indi Indian an C!nt#a C!nt#act ct Act, Act, 1-7 (ecti! (ecti!n n , Indian Indian C!nt#a C!nt#act ct Act, Act, 1-7 1-7 (ecti! (ecti!n n -, Indian Indian C!nt#act Act, 1-7 (ecti!n 72 Indian &idence Act, 1-7 (ecti!n 112 (peciic Relie Act 193 (ecti!n 3-, (peciic Relie Act 193 (ecti!n 41 #i!/o!ition: Appeal di5ied 'U#%MENT *ir For North 1. On t%e 0t% ! 6l' 1-9 t%e Rep!ndent D%a#5!da %ho!e eected %ho!e eected a 5!#t$a$e in a&!# a&!# ! 8#a%5! 8#a%5! Dtt, Dtt, a 5!ne' 5!ne'len lende# de# ca##'i ca##'in$ n$ !n +ine +ine at Calct Calctta ta and ele*%e#e, t! ec#e t%e #epa'5ent ! R. 0,000 at 1 pe# cent, inte#et !n !5e %!e +el!n$in$ t! t%e Rep!ndent. %e a5!nt actall' ad&anced i in dipte. At t%at ti5e t%e Rep!ndent *a an inant 2 and %e did n!t attain 1 ntil t%e 5!nt% ! (epte5 (epte5+e# +e# !ll!* !ll!*in$ in$.. %#!$ %#!$%! %!tt t%e t#ana t#anacti cti!n !n 8#a%5! 8#a%5! Dtt Dtt *a a+ent a+ent #!5 #!5 Calctta, and t%e *%!le +ine *a ca##ied t%#!$% !# %i5 +' %i att!#ne' eda# Nat% Mitte#, t%e 5!ne' +ein$ !nd +' Ded#a;, t%e l!cal 5ana$e# ! 8#a%5! Dtt. W%ile c!nide#in$ c!nide#in$ t%e p#!p!ed p#!p!ed ad&ance ad&ance eda# eda# Nat% #ecei&ed in!#5ati!n in!#5ati!n t%at t%e Rep!ndent *a till a 5in!# 2 and !n t%e 1t% ! 6l' 1-9 t%e !ll!*in$ lette# *a *#itten and ent t! %i5 +' 8%pend#a Nat% 8!e, an att!#ne' :
Dea# (i#, I a5 int int# #ct cted ed +' (5. (5. 6!$e 6!$end nd#a #an nnd ndin inee ee Dai, Dai, t%e t%e 5!t% 5!t%e# e# and and $a#dian app!inted +' t%e
. On t%e da' !n *%ic% t%e 5!#t$a$e *a eected, eda# Nat% $!t t%e inant t! i$n a l!n$ decla#ati!n *%ic% %e %ad p#epa#ed !# %i5, c!ntainin$ a tate5ent t%at %e ca5e ! a$e !n t%e 17t% ! 6ne 2 and t%at 8a+ Ded#a; and 8#a%5! Dtt, #el'in$ !n %i a#ance t%at +e %ad attained %i 5a;!#it', %ad a$#eed t! ad&ance t! %i5 R. 0,000. %e#e i c!nlictin$ e&idence a t! t%e ti5e *%en and ci#c5tance nde# *%ic% t%at decla#ati!n *a !+tained 2 +t it i nnecea#' t! $! int! t%i, a +!t% C!#t +el!* %a&e %eld t%at eda# Nat% did n!t act p!n, and *a n!t 5iled +', t%at tate5ent 2 and *a ll' a*a#e at t%e ti5e t%e 5!#t$a$e *a eected ! t%e 5in!#it' ! t%e Rep!ndent. It 5a' +e added %e#e t%at eda# Nat% *a t%e att!#ne' and a$ent ! 8#a%5! Dtt, and a' in %i e&idence t%at %e $!t t%e decla#ati!n !# t%e $#eate# ec#it' ! %i >client.> %e inant %ad n!t an' epa#ate le$al ad&ie#. 3. On t%e 10t% ! (epte5+e# 1-9 t%e inant +' %i 5!t%e# and $a#dian a net #iend c!55enced t%i acti!n a$aint 8#a%5! Dtt tatin$ t%at %e *a nde# a$e *%en %e eected t%e 5!#t$a$e, and p#a'in$ !# a decla#ati!n t%at it *a &!id and in!pe#ati&e, and %!ld +e deli&e#ed p t! +e cancelled. 4. %e Deendant 8#a%5! Dtt pt in deence t%at t%e Plainti *a ! ll a$e *%en %e eected t%e 5!#t$a$e t%at neit%e# %e n!# eda# Nat% %ad an' n!tice t%at t%e Plainti *a t%en an inant 2 t%at e&en i %e *a a 5in!#, t%e decla#ati!n a t! %i a$e *a #adlentl' 5ade t! decei&e t%e Deendant, and dientitled t%e Plainti t! an' #elie2 and t%at in an' cae t%e C!#t %!ld n!t $#ant t%e Plainti an' #elie *it%!t 5a=in$ %i5 #epa' t%e 5!ne' ad&anced. . 8' a #t%e# tate5ent t%e Deendant alle$ed t%at t%e Plainti %ad +e?entl' #atiied t%e 5!#t$a$e 2 +t t%i cae *%!ll' ailed, and i n!t t%e +;ect ! appeal. . M#. 6tice 6en=in, *%! p#eided in t%e C!#t ! i#t intance, !nd t%e act a a+!&e tated, and $#anted t%e #elie a=ed. (ee MANU/W8/0074/1-9- : C. W. N. 330 : . c. I. ". R. Cal. 1 And t%e Appellate C!#t di5ied t%e appeal #!5 %i5. (ee MANU/W8/000/1-9- : 3 C. W. N. 4- : . c. I. ". R. Cal. --1 (+e?entl' t! t%e intitti!n ! t%e p#eent appeal 8#a%5! Dtt died, and t%i appeal %a +een p#!ected +' %i eect!#. 7. %e i#t ! t%e Appellant@ #ea!n in pp!#t ! t%e p#eent appeal i t%at t%e C!#t +el!* *e#e *#!n$ in %!ldin$ t%at t%e =n!*led$e ! eda# Nat% 5t +e i5pted t! t%e Deendant. In t%ei# "!#d%ip@ !pini!n t%e' *e#e !+&i!l' #i$%t. %e Deendant *a a+ent #!5 Calctta and pe#!nall' did n!t ta=e an' pa#t in t%e t#anacti!n. It *a enti#el' in c%a#$e ! eda# Nat%, *%!e ll at%!#it' t! act a %e did i n!t dipted. eda# 8a+ *a actin$ !n +e%al ! 5' 5ate# #!5 t%e +e$innin$ in t%i 5atte#,> and a little #t%e# !n %e add t%at +e!#e t%e #e$it#ati!n ! t%e 5!#t$a$e %e did n!t c!55nicate *it% %i 5ate# !n t%e +;ect ! t%e 5in!#it'. 8t %e did =n!* t%at t%e#e *a a ?eti!n #aied a t! t%e Plainti@ a$e 2 and %e a' >I let all 5atte# #e$a#din$ t%e 5in!#it' in t%e %and ! eda# 8a+.> -. %e Appellant@ c!nel c!ntended t%at t%e Plainti i et!pped +' ec. 11 ! t%e Indian &idence Act BI ! 1-7 #!5 ettin$ p t%at %e *a an inant *%en %e eected t%e 5!#t$a$e. %e ecti!n i a !ll!*:>t!ppel. W%en !ne pe#!n %a +' %i decla#ati!n act !# !5ii!n intenti!nall' caed !# pe#5itted an!t%e# pe#!n t! +elie&e a t%in$ t! +e t#e, and t! act p!n c% +elie, neit%e# %e n!# %i #ep#eentati&e %all +e all!*ed in an' it !# p#!ceedin$ +et*een %i5el and c% pe#!n !# %i #ep#eentati&e t! den' t%e t#t% ! t%at t%in$.> 9. %e C!#t +el!* ee5 t! %a&e decided t%at t%i ecti!n d!e n!t appl' t! inant 2
+t t%ei# "!#d%ip d! n!t t%in= it necea#' t! deal *it% t%at ?eti!n n!*. %e' c!nide# it clea# t%at t%e ecti!n d!e n!t appl' t! a cae li=e t%e p#eent, *%e#e t%e tate5ent #elied p!n i 5ade t! a pe#!n *%! =n!* t%e #eal act and i n!t 5iled +' t%e nt#e tate5ent. %e#e can +e n! et!ppel *%e#e t%e t#t% ! t%e 5atte# i =n!*n t! +!t% pa#tie, and t%ei# "!#d%ip %!ld, in acc!#dance *it% n$li% at%!#itie, t%at a ale #ep#eentati!n, 5ade t! a pe#!n *%! =n!* it t! +e ale, i n!t c% a #ad a t! ta=e a*a' t%e p#i&ile$e ! inanc' Nel!n &. (t!c=e# 4 De . and 6. 4- B1-9E. %e a5e p#inciple i #ec!$nied in t%e eplanati!n t! ec. 19 ! t%e Indian C!nt#act Act, in *%ic% it i aid t%at a #ad !# 5i#ep#eentati!n *%ic% did n!t cae t%e c!nent t! a c!nt#act ! t%e pa#t' !n *%!5 c% #ad *a p#actied, !# t! *%!5 c% 5i#ep#eentati!n *a 5ade, d!e n!t #eade# a c!nt#act &!ida+le. 10. %e p!int 5!t p#eed, %!*e&e#, !n +e%al ! t%e Appellant *a t%at t%e C!#t !$%t n!t t! %a&e dec#eed in t%e Rep!ndent@ a&!# *it%!t !#de#in$ %i5 t! #epa' t! t%e Appellant t%e 5 ! R. 10,00 aid t! %a&e +een paid t! %i5 a pa#t ! t%e c!nide#ati!n !# t%e 5!#t$a$e. And in pp!#t ! t%i c!ntenti!n ec. 4! t%e C!nt#act Act BIF ! 1-7 *a #elied !n. 11. >(ec. 4. W%en a pe#!n at *%!e !pti!n a c!nt#act i &!ida+le #ecind it, t%e !t%e# pa#t' t%e#et! need n!t pe#!#5 an' p#!5ie t%e#ein c!ntained in *%ic% %e i p#!5i!#. %e pa#t' #ecindin$ a &!ida+le c!nt#act %all, i %e %a&e #ecei&ed an' +eneit t%e#ende# #!5 an!t%e# pa#t' t! c% c!nt#act, #et!#e c% +eneit, ! a# a 5a' +e, t! t%e pe#!n #!5 *%!5 it *a #ecei&ed.> 1. 8!t% C!#t +el!* %eld t%at t%e' *e#e +!nd +' at%!#it' t! t#eat t%e c!nt#act ! inant a &!ida+le !nl', and n!t &!id 2 +t t%at t%i ecti!n !nl' #ee# t! c!nt#act 5ade +' pe#!n c!5petent t! c!nt#act, and t%e#e!#e n!t t! inant. 13. %e $ene#al c##ent ! decii!n in India ce#tainl' i t%at e&e# ince t%e pain$ ! t%e Indian C!nt#act Act BIF ! 1-7 t%e c!nt#act ! inant a#e &!ida+le !nl'. %i c!ncli!n, %!*e&e#, %a n!t +een a##i&ed at *it%!t &i$!#! p#!tet +' &a#i! 6d$e #!5 ti5e t! ti5e 2 n!# indeed *it%!t decii!n t! t%e c!nt#a#' eect. Unde# t%ee ci#c5tance t%ei# "!#d%ip c!nide# t%e5el&e at li+e#t' t! act !n t%ei# !*n &ie* ! t%e la* a decla#ed +' t%e C!nt#act Act, and t%e' %a&e t%!$%t it #i$%t t! %a&e t%e cae #ea#$ed +e!#e t%e5 p!n t%i p!int. %e' d! n!t c!nide# it necea#' t! ea5ine in detail t%e n5e#! decii!n a+!&e #ee##ed t!, a in t%ei# !pini!n t%e *%!le ?eti!n t#n p!n *%at i t%e t#e c!nt#cti!n ! t%e C!nt#act Act itel. It i necea#' t%e#e!#e t! c!nide# ca#ell' t%e te#5 ! t%at Act, +t +e!#e d!in$ ! it 5a' +e c!n&enient t! #ee# t! t%e #ane# ! P#!pe#t' Act, IG ! 1--, ec. 7 ! *%ic% p#!&ide t%at e&e#' pe#!n c!5petent t! c!nt#act and entitled t! t#ane#a+le p#!pe#t'. . . . . . i c!5petent t! t#ane# c% p#!pe#t' . . . . . in t%e ci#c5tance, t! t%e etent, and in t%e 5anne# all!*ed and p#ec#i+ed +' an' la* !# t%e ti5e +ein$ in !#ce. %at i t%e Act nde# *%ic% t%e p#eent 5!#t$a$e *a 5ade, and it i 5e#el' dealin$ *it% pe#!n c!5petent t! c!nt#act 2 and ec. 4 ! t%at Act p#!&ide t%at t%e c%apte# and ecti!n ! t%at Act *%ic% #elate t! c!nt#act a#e t! +e ta=en a pa#t ! t%e Indian C!nt#act Act, 1-7. %e p#eent cae t%e#e!#e all *it%in t%e p#!&ii!n ! t%e latte# Act. 14. %en, t! t#n t! t%e C!nt#act Act, ec. p#!&ide Be &e#' p#!5ie and e&e#' et ! p#!5ie, !#5in$ t%e c!nide#ati!n !# eac% !t%e#, i an a$#ee5ent. B$ An a$#ee5ent n!t en!#cea+le +' la* i aid t! +e &!id. B% An a$#ee5ent en!#cea+le +' la* i a c!nt#act. Bi An a$#ee5ent *%ic% i en!#cea+le +' la* at t%e !pti!n ! !ne !# 5!#e ! t%e pa#tie t%e#et!, +t n!t at t%e !pti!n ! t%e !t%e# !# !t%e#, i a &!ida+le c!nt#act. 1. (ec. 10 p#!&ide >All a$#ee5ent a#e c!nt#act i t%e' a#e 5ade +' t%e #ee c!nent ! pa#tie c!5petent t! c!nt#act, !# a la*l c!nide#ati!n, and *it% a la*l !+;ect, and a#e n!t %e#e+' ep#el' decla#ed t! +e &!id.> 1. %en ec. 11 i 5!t i5p!#tant, a deinin$ *%! a#e 5eant +' >pe#!n c!5petent t! c!nt#act2> it i a !ll!* :>&e#' pe#!n i c!5petent t! c!nt#act *%! i ! t%e a$e ! 5a;!#it' acc!#din$ t! t%e la* t! *%ic% %e i +;ect, and *%! i ! !nd 5ind, and i n!t di?aliied #!5 c!nt#actin$ +' an' la* t! *%ic% >%e i +;ect.> "!!=in$ at
t%ee ecti!n t%ei# "!#d%ip a#e atiied t%at t%e Act 5a=e it eential t%at all c!nt#actin$ pa#tie %!ld +e >c!5petent t! c!nt#act,> and ep#el' p#!&ide t%at a pe#!n *%! +' #ea!n ! inanc' i inc!5petent t! c!nt#act cann!t 5a=e a c!nt#act *it%in t%e 5eanin$ ! t%e Act. %i i clea#l' +!#ne !t +' late# ecti!n in t%e Act. (ec. - p#!&ide t%at >I a pe#!n incapa+le ! ente#in$ int! a c!nt#act !# an' !ne *%!5 %e i le$all' +!nd t! pp!#t i pplied +' an!t%e# pe#!n *it% necea#ie ited t! %i c!nditi!n in lie, t%e pe#!n *%! %a #ni%ed c% pplie i entitled t! +e #ei5+#ed #!5 t%e p#!pe#t' ! c% incapa+le pe#!n.> It i +e'!nd ?eti!n t%at an inant all *it%in t%e cla ! pe#!n %e#e #ee##ed t! a incapa+le ! ente#in$ int! a c!nt#act 2 and it i clea# #!5 t%e Act t%at %e i n!t t! +e lia+le e&en !# necea#ie, and t%at n! de5and in #epect t%e#e! i en!#cea+le a$aint %i5 +' la*, t%!$% a tatt!#' clai5 i c#eated a$aint %i p#!pe#t'. Unde# ec. 1-3 and 1-4 n! pe#!n nde# t%e a$e ! 5a;!#it' can e5pl!' !# +e an a$ent. A$ain nde# ec. 47 and 4-, alt%!$% a pe#!n nde# 5a;!#it' 5a' +e ad5itted t! t%e +eneit ! a pa#t ne#%ip, %e cann!t +e 5ade pe#!nall' lia+le !# an' ! it !+li$ati!n 2 alt%!$% %e 5a' !n attainin$ 5a;!#it' accept t%!e !+li$ati!n i %e t%in= it t! d! !. %e ?eti!n *%et%e# a c!nt#act i &!id !# &!ida+le p#epp!e t%e eitence ! a c!nt#act *it%in t%e 5eanin$ ! t%e Act, and cann!t a#ie in t%e cae ! an inant. %ei# "!#d%ip a#e t%e#e!#e ! !pini!n t%at in t%e p#eent cae t%e#e i n!t an' c% &!ida+le c!nt#act a i dealt *it% in ec. 4. 17. A ne* p!int *a #aied %e#e +' t%e Appellant@ c!nel !nded !n ec. ! t%e C!nt#act Act, a ecti!n n!t #ee##ed t! in t%e C!#t +el!*, !# in t%e cae ! t%e Appellant !# Rep!ndent. It i icient t! a' t%at t%i ecti!n, li=e ec. 4, ta#t #!5 t%e +ai ! t%e#e +ein$ an a$#ee5ent !# c!nt#act +et*een c!5petent pa#tie 2 and %a n! applicati!n t! a cae in *%ic% t%e#e ne&e# *a, and ne&e# c!ld %a&e +een, an' c!nt#act. 1-. It *a #t%e# a#$ed t%at t%e p#ea5+le ! t%e Act %!*ed t%at t%e Act *a !nl' intended t! deine and a5end ce#tain pa#t ! t%e la* #elatin$ t! c!nt#act, and t%at c!nt#act +' Inant *e#e let !tide t%e Act. I t%i *e#e !, it d!e n!t appea# %!* it *!ld %elp t%e Appellant. 8t in t%ei# "!#d%ip@ !pini!n t%e Act, ! a# a it $!e, i e%ati&e and i5pe#ati&e 2 and d!e p#!&ide in clea# lan$a$e t%at an inant i n!t a pe#!n c!5petent t! +ind %i5el +' a c!nt#act ! t%i dec#ipti!n. 19. An!t%e# enact5ent #elied p!n a a #ea!n *%' t%e 5!#t$a$e 5!ne' %!ld +e #et#ned i ec. 41 ! t%e (peciic Relie Act BI ! 1-77 *%ic% i a !ll!* :>(ec. 41. On ad;d$in$ t%e cancellati!n ! an int#5ent t%e C!#t 5a' #e?i#e t%e pa#t' t! *%!5 c% #elie i $#anted t! 5a=e an' c!5penati!n t! t%e !t%e# *%ic% ;tice 5a' #e?i#e.> (ec. 3- p#!&ide in i5ila# te#5 !# a cae ! #ecii!n ! a c!nt#act. %ee ecti!n n! d!+t d! $i&e a dic#eti!n t! t%e C!#t, +t t%e C!#t ! )i#t Intance and +e?entl' t%e Appellate C!#t, in t%e ee#cie ! c% dic#eti!n, ca5e t! t%e c!ncli!n t%at nde# t%e ci#c5tance ! t%i cae ;tice did n!t #e?i#e t%e5 t! !#de# t%e #et#n +' t%e Rep!ndent ! 5!ne' ad&anced t! %i5 *it% ll =n!*led$e ! %i inanc', and t%ei# "!#d%ip ee n! #ea!n !# inte#e#in$ *it% t%e dic#eti!n ! ee#cied. 0. It *a al! c!ntended t%at !ne *%! $ee= e?it' 5t d! e?it'. 8t t%i i t%e lat p!int !&e# a$ain and d!e n!t #e?i#e #t%e# n!tice ecept +' #ee##in$ t! a #ecent decii!n ! t%e C!#t ! Appeal in %#tan &. N!ttin$%a5 Pe#5anent 8eneit 8ildin$ (!ciet' ". R. B1901 C%. 1 B1901 2 !n appeal, ". R. B1903 App. Ca. ince ai#5ed +' t%e
6tice R!5e# a', at p. 13 >%e %!#t an*e# i t%at a C!#t ! ?it' cann!t a' t%at it i e?ita+le t! c!5pel a pe#!n t! pa' an' 5!ne' in #epect ! a t#anacti!n *%ic% a a$aint t%at pe#!n t%e "e$ilat#e %a decla#ed t! +e &!id.> (! %e#e. 1. %ei# "!#d%ip !+e#&e t%at t%e c!nt#cti!n *%ic% t%e' %a&e pt p!n t%e C!nt#act Act ee5 t! +e in acc!#dance *it% t%e !ld
