12 February 1991
Supreme Court
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RATTAN CHAND HIRA CHAND Vs ASKAR NAWAZ JUNG (DEAD) BY L.RS. AND ORS.

Bench: SAWANT,P.B.
Case number: Appeal Civil 740 of 1978


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PETITIONER: RATTAN CHAND HIRA CHAND

       Vs.

RESPONDENT: ASKAR NAWAZ JUNG (DEAD) BY L.RS. AND ORS.

DATE OF JUDGMENT12/02/1991

BENCH: SAWANT, P.B. BENCH: SAWANT, P.B. FATHIMA BEEVI, M. (J)

CITATION:  1991 SCR  (1) 327        1991 SCC  (3)  67  JT 1991 (1)   433        1991 SCALE  (1)200

ACT:      Indian  Contract  Act-Sections  23,  65,  69,  70   and 73(2)-Contract whereby one party is to  assist  another   in recovering    property   and   sharing  proceeds  by   using influence-Whether opposed to ’public policy’.

HEADNOTE:      Nawab   Salar   Jung   III  expired   on    March    2, 1949   leaving    behind  him no issue but  a  vast  estate. Several  persons  came forward to be his heirs. One  of  the claimants,    Sajjid    Yar   Jung,   did  not   have    the wherewithal   to  establish  his  claim to   a   share    in the     estate.     He  approached   the    plaintiff    for financial   help.   An   agreement   was   executed  between them   according  to  which  Sajjid  Yar  Jung   agreed   to return  all amounts to be advanced by the plaintiff  and  in addition   to  give  him  one anna  share  in   the   amount that   would   be  received  by   Sajjid   Yar    Jung  from the  estate.  Sajjid  Yar  Jung  borrowed  a  total  sum  of Rs-75,000 under the agreement.      The  dispute  was  ultimately  settled  in  the   Civil Court    by   compromise  between  the  various   claimants. According   to   the    plaintiff,    the  amount   due   to Sajjid   Yar   Jung  was  about  Rs.60   Lakhs   and   hence the  plaintiff claimed Rs.3 lakh  as  one  anna   share   in addition   to   the   sum  advanced,  i.e.  Rs.75,000.   The plaintiff   filed  the  present  suit  for  the recovery  of the  total  amount. The City Civil Court  inter  alia  found that   the  agreement was opposed to public  policy  as  the object  of the agreement was  that  the   plaintiff   should wield  his  influence  with  Central and State Ministers  to have  the  Nawab  recognised as the heir to  the  estate  in return  for his being given one anna share in the amount  to be   received by the Nawab. The Court, therefore, held  that the agreement in question  was  not  enforceable,  and  even the  amounts   actually   advanced   could not be  recovered by the plaintiff.      In  the  appeal,  the Division  Bench   of   the   High Court  held  that the agreement was one whole agreement  and hence  the  plaintiff was not entitled to recover  even  the amount  of  Rs.75,000  which  was  actually  advanced.   The Division  Bench  also  held that the  agreement  was  public

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policy.                                                        328      This Court granted special leave only in respect of the said amount of Rs.75,000.      Before  this  Court it was contended on behalf  of  the plaintiff  that  (i)  the  amount  of  Rs.75,000  could   be separated  from  the  other agreement or  could  be  treated differently; (ii) if the champertous nature of the agreement was  ignored  which  it was legitimate to do  so   in   this country, there was no  other  ground  of  public  policy  on which  the   agreement   could   be   struck   down;   (iii) assuming  that  the  agreement  was   a champertous one,  it was   neither  immoral  nor  against  public   policy,   and even   de   hors   the  agreement,   the    appellant    was entitled  to the said advance  of  Rs.75,000  under  section 70   of  the   Indian Contract   Act. It was  further  urged that  both  the  City  Civil  Court  as  well as  the   High Court  had   created  a  new  head  of  public   policy   to declare  the  agreement as void, although according to   the relevant   statutory  provisions  as  well as the  decisions of the court, the agreement was not void.      Dismissing the appeal, this Court,      HELD: Per Sawant, J.      (1)  It is apparent on the face  of  the  record   that the   advance  and the share in the estate  were  parts   of the   same   contract-  one  as  a   consideration  for  the other. The two stand together and none can stand without the other. [333F]      (2)  A  contract which  has  a   tendency   to   injure public   interests  or public welfare is one against  public policy. [337D]      (3)    What   constitutes   an   injury    to    public interests    or   welfare would depend upon the  times   and climes.   The   social  milieu  in  which  the  contract  is sought   to  be  enforced  would  decide  the  factum,   the nature and the degree of  the  injury.  It  is  contrary  to the   concept   of  pubic policy to  contend  that   it   is immutable,   since  it  must  vary  with  the varying  needs of   the  society.  What  those  needs  are   would   depend upon  the  consensus value-judgments  of   the   enlightened section   of   the  society. These  values   may   sometimes get   incorporated  in  the   legislation,    but  sometimes they may not. [337E]      (4)   The   legislature  often  fails  to   keep   pace with  the  changing needs and values nor is it realistic  to expect that it will have provided  for all contingencies and eventualities. [337E-F]                                                        329      (5)  It  is not only necessary but  obligatory  on  the courts  to step in to fill the lacluna. When courts  perform this function undoubtedly  they legislate  judicially.   But that  is  a  kind  of  legislation  which  stands implicitly delegated   to  them  to  further  the   object    of    the legislation  and to promote the goals of the society. [337F]      (6) So long as the courts keep themselves  tethered  to the  ethos  of the society and do not travel off its course, so  long  as  they  attempt  to furnish the felt necessities of   the time and  do  not  refurbish  them.  their role  in this respect has to be welcomed. [337G]      Ghurelal   Parakh   v.   Mahadeodas   Maiya   &   Ors., [1959]    Suppl.   2 S.C.R. 406;  Richardson   v.   Mellish, [1824]  2  Bing.  229;  In  re  Mirams, [1891] 1 Q. B.  594, referred to.      (7)  All courts are at one time or the other  felt  the need   to   bridge the gap between what is   and   what   is

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intended  to  be.  The  courts  cannot in such circumstances shirk  from their duty and refuse  to  fill  the   gap.   In performing   this   duty  they  do  not   foist   upon   the society  their  value judgments. They  respect  and   accept the   prevailling   values,  and  do  what  is  expected  of them. [338D]      (8)  The courts will fail in their duty  if   they   do not   rise  to  the occasion but approve helplessly  of   an interpretation  of  a  statute  or  a document or an  action of   an   individual  which  is  certain  to   subvert   the societal goals and endanger the public good. [338E]      (9)  The  contract in  the  present   case   had   been entered   into  with the  obvious  purpose  of   influencing the   authorities  to  procure  a  verdict in favour of  the late   Nawab  and  was  obviously  a   "carrier"   contract. To  enforce  such  a contract although  its  tendencies   to injure   public  weal  are manifest is not only to  abdicate one’s  public  duty  but  to  assist  in  the promotion of a pernicious    practice    of    procuring    decisions    by influencing authorities  when  they  should  abide  by   the law.   To  strike  down   such contracts is not to invent  a new  head of public policy but to give  effect  to its  true implications. [338F-G]      In the matter of Mr. ’G’, a  Senior  Advocate  of   the Supreme  Court, [1955] 1 S.C.R. 490, referred to.      (10)  A democratic society is  founded  on   the   rule of   law   and   any  practice which  seeks  to  subvert  or circumvent  the  law at its  very root.   When   the   Court discountenances  such  practice,  it  only  safeguards                                                        330 the  foundation  of the society. Even  assuming   that   the Court   finds  a  new head of public policy to  strike  down such  practice,  its  activism is not   only  warranted  but desired. [338G-H]      Per Fathima Beevi, J.      (1)  There is no doubt that the contract  relating   to the   payment   of  the amount is not  severable  from   the agreement   to  promote  the  cause  of  Sajjid Yar Jung  by wielding the influence the plaintiff had. [339G]      (2)   Every   agreement   of  which   the   object   or consideration    is  unlawful is void. The consideration  or object   of   an   agreement  is  unlawful  when  the  court regards it as opposed to public policy. [339G]      (3)   Public   Policy  is  a  principle   of   judicial interpretation   founded  on  the  current  needs   of   the community.   The  law  relating  to   public policy   cannot remain   immutable.    It   must   change    with    passage of time. [339H-340A]      (4) A bargain whereby one party is to  assist   another in  recovering property and is to share in the  proceeds  of the    action   and   such   assistance  is  by  using   the influence   with  the  administration  irrespective  of  the fact that the persons intended to  be  influenced  are   not amenable   to  such  influence is  against  protection   and promotion   of   public  welfare. It is  opposed  to  public policy. [340B]

JUDGMENT:      CIVIL  APPELLATE JURISDICTION: Civil Appeal No. 740  of 1978.      From  the  Judgment  and  Decree  dated  18.3.1975   of the   Andhra Pradesh High Court in C.C.C.A. No. 106 of 1969.      G.A.  Shah,  V.J.  Francis  and  N.M.  Popli  for   the

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Appellant.      S.B.  Bhasme,  P.K.  Pillai and Dilip  Pillai  for  the Respondents.      The Judgment of the Court was delivered by      SAWANT,  J.  Although  the  leave   granted   by   this Court    is   limited  to   the   question    whether    the plaintiff   is   entitled   to  an   amount    of  Rs.75,000 which  according  to  him  he  had  actually  advanced   and the  respondents  had   received   for   the   purpose    of prosecuting  their  litigation, and,  therefore,  the  issue to  be  answered  lies  within  a  narrow                                                        331 compass, it is necessary to state the relevant facts briefly to  understand correctly the significance of the question to be answered.      2.  Nawab  Salar  Jung  III,   a   celebrity   of   the erstwhile   State   of Hyderabad expired on March  2,   1949 leaving   behind  him  no  issue  but  a vast   estate.   As was  expected,  several  persons  came  forward  claiming to be  his  heirs,  and  among  them  were  Sajjid   Yar   Jung and   Turab  Yar Jung who claimed to be his  first  cousins. The Nizam  by  a  notification  of May 9,  1949,   appointed a   Committee   to  administer  the  estate   of   the  late Nawab   Salar   Jung.  On  the  merger  of   the   Hyderabad State,    the Central  Government  by  the    Nawab    Salar Jung    Bahadur    (Administration of  Assets)   Act   1950, continued  the  Committee  and  also  provided that no  suit or  other  legal proceeding for  the  enforcement   of   any right  or  remedy  in  respect  of  any  asset,  shall    be instituted   in  any  court  by any person other  than   the Committee   except   with   the  previous   consent  of  the Central Government.      3.   In   the   meanwhile,  on  May   31,   1949,   the Nizam   had   already appointed a  Commission   to   enquire into  the  question  of  succession  to the estate, and  one of   the   questions   referred  to   the   Commission   was whether   the   Jagir   of  the  late   Nawab   Salar   Jung escheated    to    the Government  and   another   was   the ascertainment    of    his   heirs.    The  Commission   was unable  to  proceed  with  the  inquiry  as  some  of    the claimants filed a  writ  petition  in  the  High  Court   of Andhra   Pradesh  challenging  the   jurisdiction   of   the Commission   to  enquire  into  the question of  succession. The   High   Court,  by  its  decision   of   September  23, 1952   held  that  the  Commission  was  not   the    proper forum    for determining the  question  of  succession   and directed   that   the   management of  the   estate   should remain   with   the   Committee  until   the   question  was settled  by a Civil  Court.  The  question  was   ultimately settled  by   compromise  between  the   various   claimants including     the     Government.   The    compromise    was incorporated  in  a  decree  dated   March   5, 1959  passed in  a suit being Suit No. O.S. 13/58  which  was  filed   by some  of  the claimants. The present  proceedings   are   an offshoot  of  the  said suit.      4.  Sajjid  Yar Jung who claimed to be   one   of   the first   cousins  of the late Nawab Salar Jung did  not  have the  wherewithal  to  establish  his claim to a share in the estate.   He   approached   the   plaintiff   who   was    a businessman  of   Bombay  for  financial  help   to   enable him  to  establish his claim. According to the plaintiff, he agreed to do  so  and  Sajjid  Yar Jung agreed to return all amounts  to  be  advanced  to  him  from  time  to time  and also  to  give  the plaintiff  one   anna   share   in   the amount  that

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                                                      332 would be received by him from the estate.  The agreement was executed  in writing on June 27, 1952 which is  the  subject matter  of  the  present  proceedings.   Pursuant  to   this agreement Sajjid Yar Jung and his agents drew large  amounts from  the  plaintiff from time to time, totalling  to  about Rs.75,000.  Sajjid  Yar Jung expired  before  the  plaintiff received  his share of the amount as per the  agreement  but after Sajjid Yar Jung successfully established his claim  to the  share in the estate.  According to the  plaintiff,  the amount  due  to Saijid Yar Jung from the  estate  was  about Rs.60  lakhs  and hence he claimed Rs.3 lakhs as  his  share (calculated  at  one  anna in a rupee) in  addition  to  the return of the sums advanced by him which as stated above was Rs.75,000. The plaintiff, therefore, filed the present  suit against  the heirs of Sajjid Yar Jung for accounts  and  for administration  of  his estate and for distribution  of  the amount  among  the plaintiff and the  defendants.   He  also joined  the  receiver  of the estate  of  Nawab  Salar  Jung Bahadur as one of the defendants to the suit.      5.  The  heirs  of  the  late  Nawab  Sajjid  Yar  Jung (hereinafter referred to as "Nawab") contested the suit  and denied  that the plaintiff had advanced any amounts  to  the Nawab.   They  also raised other contentions  including  the contentions that the suit was barred by limitation and  that the  agreement of June 27, 1952 was unenforceable in law  as it  was in the nature of a champerty deal which was  opposed to public policy and forbidden by law.      6. The City Civil Court where the suit was filed  found that  the agreement was genuine, that it was  admissible  in evidence, that the amounts were advanced by the plaintiff to the  Nawab and that the suit was not barred  by  limitation. However,  the Court found that the agreement was opposed  to public  policy as the object of the agreement was  that  the plaintiff should wield his influence with Central and  State Ministers  to have the Nawab recognised as the heir  to  the estate  in return for his being given one anna share in  the amount  to be received by the Nawab.  The Court,  therefore, held  that  the agreement in question was  not  enforceable. The Court also held that even the amounts actually  advanced by  the  plaintiff and received by the Nawab  could  not  be recovered   by  the  plaintiff.   Accordingly,   the   Court dismissed  the suit with costs.  The plaintiff preferred  an appeal to the High Court.      7.   The Division Bench of the High Court held that the appeal had abated against all the respondents on account  of the  failure of the plaintiff-appellant to bring  on  record the heirs of one of the respondents, viz., Askar Nawab  Jung who had died pending the appeal.  On                                                        333 merits,  the Bench also held that the agreement was  against the  public  policy.  The Court  further   held   that   the agreement    was    one    whole  agreement  and  hence  the plaintiff  was not entitled  to  recover  even   the  amount of  Rs.75,000  which  was  actually  advanced  by   him   to the  Nawab  for  prosecuting  the  litigation.  It  is  this decision which  is  challenged before us.      8.  As stated earlier, leave has been granted  only  in respect    of    the  said  amount   of    Rs.75,000    and, therefore,   we  are   concerned   in   the  present  appeal only  with  the  question  as  to  whether  the   conclusion arrived  at by the High Court, i.e.,  that   the   agreement is   opposed   to public policy and the actual  advance   of Rs.75,000   was  a  part  of  the whole agreement  and  was, therefore,  also tainted  by  the  vice  of  being  contrary

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to public policy is correct.      9. That the amount of Rs.75,000  was  advanced  by  the plaintiff   to  the  Nawab for prosecuting his  claim  as  a sharer   in   the  estate,  is  not disputed. In  fact,  the Nawab  had to approach  the  plaintiff  and  had   to  enter into  the agreement in question for the express purpose   of successfully  prosecuting  his claim. The  plaintiff  cannot also   contend  that  he had  agreed  to  and  did   advance the   said  amount  of  Rs.75,000  only because  he   wanted and   expected   the   Nawab  to  be   successful   in   the prosecution  of his claim. The advance was not  a   friendly loan   or   without  consideration.  The  agreement   itself stipulated  that  on  the  successful establishment  of  the claim,  the  Nawab   would  not   only   return   the   said advance  but would also pay to the plaintiff   consideration for  the  said advance. That consideration was agreed to  be at   the  rate  of  one  anna in a rupee. It is,  therefore, apparent on the face of the record that  the advance and the share  in the estate, were a part  of  the  same   contract- one  as  a  consideration for the  other.  The   two   stand together  and  none can stand without the other. Hence, I am not   impressed   by  the  contention   advanced   by   Shri Shah   for  the  appellant  that  the  amount  of  Rs.75,000 which  was advanced  by  the  appellant  can  be   separated from the other agreement or could be treated differently.  I am   in   agreement with the High Court that  the  agreement has  to  be  treated  as  a  whole and the two parts,  viz., the advance and the consideration  for  the  same cannot  be separated from each other.      10.  The next  question  is  whether  the  advance   in question   was opposed to public policy. On  this  question, Shri   Shah  took  us  through the law on the  subject,  and contended  that both the City  Civil  Court  as well as  the High  Court have  created  a  new  head  of  public   policy to declare the agreement as void, although according to  the relevant                                                        334 statutory Provisions as well as the decisions of the  Court, the  agreement  is  not void.  In  the  first  instance,  he referred us to the provisions of Sections 23, 65, 69, 70 and Part (ii) of Section 73 of the Indian Contract Act.  Section 23  states that the consideration or object of an  agreement is  lawful, unless it is forbidden by law; or is of  such  a nature  that, if permitted, would defeat the  provisions  of any law, or is fraudulent; or involves or implies injury  to the  person or property of another; or the Court regards  it as  immoral, or opposed to public policy.  In each of  these cases the consideration or object of an agreement is said to be  unlawful.   Every  agreement  of  which  the  object  or consideration  is unlawful is void.  He then pointed out  to us that the specific rule of English law against maintenance and  champerty  have  not  been  adopted  in  India  and   a champertous  agreement is not per se void in  this  country. He contended that before a champertous agreement is held  to be  void, it must be shown that it is against public  policy or   against  justice,  equity  and  good  conscience.    He contended  in this connection that the Nawab admittedly  did not  have sufficient finance to prosecute his claim  though, he  had  a  valid  claim  as shown  by  the  result  of  the litigation  in that behalf.  The plaintiff,  therefore,  did not do anything wrong in advancing the amount in question to him to enable him to establish his claim successfully  since the  Nawab could not have repaid the amount unless he got  a share in the estate.  It was a legitimate exercise to reduce the  agreement to writing and to stipulate therein that  the

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amount  should  be repaid along with a share in  the  estate when  the Nawab’s claim was established.  The share  in  the estate being only one anna in a rupee could not also be said to be on the high side and conscionable.  The High Court has given  a finding in that behalf in favour of the  appellant. The High Court has, however, held against the appellant only on the ground that the agreement was against public  policy. He  strenuously urged that if the champertous nature of  the agreement is ignored which it is legitimate to do so in this country, there is no other ground of public policy on  which the agreement can be struck down.      11.  In this connection, he referred us to the decision of this Court in the matter of Mr. ’G’, a Senior Advocate of the  Supreme Court, [1955] 1 SCR 490 where it is  reiterated that a champertous contract would be legally unobjectionable if  no lawyer was involved and that the rigid English  rules of Champerty and Maintenance do not apply in India.  In that case,  he  pointed  out to us that the  agreement  was  held unenforceable because it was agreement between a lawyer  and his  client  and  it amounted  to  professional  misconduct. However, this Court has also observed there that if such  an agreement had been                                                        335 between   a  third  party  "it  would  have   been   legally enforceable  and good. It may even be that it is good in law and enforceable  as  it  stands though we do not so   decide because   the   question  does  not  arise;   but  that  was argued and  for  the  sake  of  argument  even that  can  be conceded.  It follows that there is nothing morally   wrong, nothing   to  shock the conscience, nothing  against  public policy  and  public  morals  in  such a transaction per  se, that  is  to  say, when  a   legal   practitioner   is   not concerned.  But  that is not  the  question   we   have   to consider.   However much  these  agreements  may   be   open to   other  men  what  we  have   to decide is whether  they are permissible under the  rigid  rules  of  conduct enjoyed by  the members of  a  very  close   professional   preserve so  that their integrity, dignity and honour may  be  placed above  the  breath  of scandal".      12. His second leg  of  the  argument  rested  on   the other  provisions of  the  Indian  Contract  Act  to   which I   have  made   reference above. He contended   that   even assuming    that   it   was   an   agreement    to   receive consideration  a  share  in  the  claim  that  was  to    be established   by  the Nawab, it  was  not   against   public policy.  He  contended  that  the amount  in  question   was admittedly   advanced  and  an  advantage  of  it was  taken by   the  Nawab  to   establish   his   claim.    He    had, therefore,   to  return the same to the appellant.  In  this connection,   he  referred  to  us to the  other  provisions of   the  Indian  Contract  Act  to  which  I  have  made  a reference  earlier.  Section  65   states   that   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 he received it. Section 69 states that  a  person   who is  interested in the payment of moneys  which  another   is bound   by  law  to  pay,  and who therefore  pays  it,   is entitled   to   be  reimbursed  by  the  other.  Section  70 declares   that  where  a  person  lawfully  does   anything for  another  person, or delivers  anything  to   him,   not intending   to  do  so gratuitously, and such other   person enjoys   the   benefit  therefore,  the latter is  bound  to make  compensation  to the former in  respect  of,   or   to

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restore,  the  thing  so done or delivered.  Part  (ii)   of Section   73   states  that when  an  obligation  resembling those   created  by  contract  has  been incurred  and   has not   been   discharged,  any  person   injured    by    the failure  to  discharge it, is  entitled   to   receive   the same   compensation  from the party in default  as  if  such person  had  contracted  to  discharge it and had broken his contract. Shri Shah also referred us to the provisions of  Section  84 of  the Indian Trusts Act, 1882 which reads as follows:                                                        336           "84.  Where the owner of property transfers it  to           another for an illegal purpose and such purpose is           not  carried into execution, or the transferor  is           not as guilty as the transferee, or the effect  of           permitting  the transferee to retain the  property           might be to defeat the provisions of any law,  the           transferee must hold the property for the  benefit           of the transferor.      Relying  on these statutory provisions as well  as  the judicial decisions, he contended firstly that assuming  that the agreement was a champertous one, it was neither  immoral nor  against  public policy, and secondly even de  hors  the agreement, the appellant is entitled to the said advance  of Rs.75,000 under Section 70 of the Indian Contract Act.      13.  The High Court referred to the evidence on  record in  appeal which had an intimate bearing on the  nature  and the  purpose  of the agreement in question and came  to  the following  conclusions.  The Court held that the  plaintiff- appellant  was  approached  by the  Nawab  because  being  a businessman  of eminence, he was highly influencial. He  had an  access  to  the  ministers and  other  worthies  in  the Government.  He was in a position to secure to the Nawab his claim  by wielding his influence.  The Nawab knew  about  it and  the  plaintiff  was also confident  about  it.   It’was immaterial  that  those whom he had approached were  men  of high repute and great integrity of character. The fact  that because  of  his  accessibility he  could  get  things  done through  them or could make use of his other  standing  with them to deliver goods to the Nawab, was enough to taint  the entire agreement with the vice of introducing corruption  in public  life.   The High Court also found that  the  advance which  was made was in the nature of an investment to  share the booty.  There was no reason for the plaintiff who was  a total  stranger to the Nawab to undertake the  financing  in question  which  was in those days on a  considerably  high- scale.   No person who was not confident of  delivering  the goods  would  have embarked on financing on such  a  liberal scale.  The plaintiff admittedly was a businessman who  knew the value of each pie he was spending. He was doing it as  a fruitful investment with sure returns.  That is evident from the terms of the contract themselves since both the  advance and the consideration for which the advances were made  form part of one integral contract.  On these facts which are  on record,  the  High  Court came to the  conclusion  that  the parties had entered into the agreement in question with  the avowed  purpose  that  the  plaintiff  would  use  his  then prevailing influence with the worthies in the                                                        337 Government   to  secure  the  gains  for  the   Nawab.   The Court   On   this evidence  came  to  the  conclusion   that the   agreement  was  nothing   but one obviously  made   to lend   services  as  a  "go-between"  or  a   "carrier"  for commission. This being so, it was  against  public  interest and  detrimental to the health of body politic.

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    14.   The    High   Court    further    repelled    the contention   that   either the City Civil Court  or  it  was evolving  a  new  head  of  public  policy  by referring  to a  decision  of   this   Court   in   Ghurelal   Parakh   v. Mahadeodas  Maiya   &   Ors.,   AIR   1959   SC   781=(1959) Suppl.   2   SCR   406   and   the decisions of the  English Court  and  to   opinions   of   the   jurists/experts    in treatises and essays  on  the  subject  of  public   policy. The   Court  also pointed out that this was by no  means   a new   head  of  public  policy  and it can come  under   the head   "agreements   tending  to  injure   the   public"  as mentioned at page 325 of Anson’s Law of Contract (23rd ed).      15.   I  am  in   respectful   agreement    with    the conclusion   arrived  at by the High Court. It   cannot   be disputed   that   a   contract  which  has   a  tendency  to injure   public   interests  or  public   welfare   is   one against  public  policy.  What  constitutes  an  injury   to public   interests   or  welfare would   depend   upon   the times   and   climes.  The  social  milieu   in   which  the contract   is  sought  to  be  enforced  would  decide   the factum,   the nature and the degree of the  injury.  It   is contrary  to  the  concept  of public policy to contend that it  is  immatable,  since  it  must  vary  with the  varying needs   of   the  society.  What  those  needs   are   would depend  upon   the   consensus   value-judgments   of    the enlightened   section  of  the society.  These  values   may sometimes   get   incorporated  in   the   legislation,  but sometimes  they  may  not.  The  legislature   often   fails to   keep pace with the changing needs and values nor is  it realistic  to  expect  that it will have  provided  for  all contingencies   and  eventualities.  It  is, therefore,  not only  necessary but obligatory on the  courts  to  step   in to fill  the  lacuna.  When  courts  perform  this  function undoubtedly    they legislate judicially.  But  that  is   a kind  of  legislation  which  stands implicitly delegated to them  to  further the object  of  the  legislation   and  to promote   the  goals  of  the  society.  Or   to   put    it negatively,  to  prevent the frustration of the  legislation or  perversion  of  the  goals  and  values of the  society. So  long   as  the  courts  keep  themselves   tethered   to the  ethos  of  the  society and do  not  travel   off   its course,   so   long  as  they attempt to  furnish  the  felt necessities  of  the  time  and  do   not   refurbish  them, their role in this respect has to be welcomed.      It  is  true  that  as  observed  by  Burrough,  J.  in Richardson   v. Mellish, [ 1824] 2 Bing. 229 at  252  public policy is  "an  unruly  horse  and                                                        338 dangerous to ride" and as observed by Cave, J. in re Mirams, [189]  1 QB 594 at 595 it is "a branch of the law,  however, which  certainly should not be extended, as judges are  more to be trusted as interpreters of the law than as  expounders of what is called public policy".  But as observed by  Prof. Winfield in his article ’Public Policy in the English Common Law’ [1928]42 Harv.  L. Rev. 76, 91]:           "Some judges appear to have thought it [the unruly           horse  of  public policy] more like a  tiger,  and           refused  to mount it at all perhaps  because  they           feared the fate of the young lady of Riga.  Others           have  regarded  it like Balaam’s ass  which  would           carry its rider nowhere.  But none, at any rate at           the  present day, has looked upon it as a  Pegasus           that might soar beyond the momentary needs of  the           community." All  courts  are at one time or the other felt the  need  to

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bridge  the gap between what is and what is intended to  be. The   courts cannot in such circumstances shirk  from  their duty  and refuse to fill the gap.  In performing  this  duty they  do not foist upon the society  their  value-judgments. They  respect and accept the prevailing values, and do  what is  expected of them.  The courts will, on the  other  hand, fail  in their duty if they do not rise to the occasion  but approve  helplessly of an interpretation of a statute  or  a document  or of an action of an individual which is  certain to subvert the societal goals and endanger the public good.      16.   The  contract such as the present  one  which  is found  by the City Civil Court as well as the High Court  to have   been  entered  into  with  the  obvious  purpose   of influencing  the authorities to procure a verdict in  favour of  the  late Nawab was obviously a "carrier"  contract.  To enforce  such a contract although its tendencies  to  injure public weal is manifest is not only to abdicate one’s public duty but to assist in the promotion of a pernicious practice of procuring decisions by influencing authorities when  they should  abide by the law.  To strike down such contracts  is not to invent a new head of public policy but to give effect to  its true implications.  A democratic society is  founded on  the rule of law and any practice which seeks to  subvert or  circumvent the law strikes at its very root.   When  the Court discountenances such practice, it only safeguards  the foundation  of the society.  Even assuming, therefore,  that the  Court finds a new head of public policy to strike  down such  practice,  its  activism is  not  only  warranted  but desired.                                                        339      The   appeal  is,  therefore,   dismissed.    In    the circumstances   of  the case, there will be no order  as  to costs.      FATHIMA   BEEVI,  J.  I  have  had  the  advantage   of perusing    the judgment prepared  by  my  teamed   brother, Sawant,  J.  I  agree  with  him that the appeal must  fail. I   wish to say a few words. The  only  point   that  arises for  decision  in  the  appeal  is  whether  an  amount   of Rs.75,000 which the  plaintiff  claims  to  have   advanced, is  recoverable  from  the respondents. The relevant   facts have   been  stated  by  my  learned  brother and it is  not necessary  to  repeat  the  same.  The  City   Civil   Court found  that  the agreement on  the  basis   of   which   the plaintiff  claimed  relief was opposed  to  public   policy. The   object   of  the  agreement  according  to  the  trial court  was that the plaintiff should  wield  his   influence with  Central  and State Ministers  to   have   Sajjid   Yar Jung  recognised  as  the heir of late Nawab Salar  Jung  in return   for   his   being  given  one  anna  share  in  the assets to be received by Sajjid Yar  Jung  from  the  estate of late Nawab Salar Jung.      The   High  Court  has  confirmed  that    under    the agreement    the plaintiff was  to  promote  the  cause   of Sajjid   Yar  Jung  in  his  being recognised  as  heir   of the  Nawab  Salar  Jung  and  for  the  help   thus rendered to receive a share of  one  anna  in  a  rupee  out  of  the assets  obtained.   The   plaintiff    appears    to    have advanced    an    amount   of Rs.75,000 in   promoting   the cause   of  Sajjid  Yar  Jung  as  agreed  upon.  The   help in   promoting   the   cause  was  much   more   than   mere financing.  On the  evidence  the  High  Court  found   that the   help  Sajjid  Yar  Jung wanted from the plaintiff  was to  bring  to  bear  his  influence  with  the Central   and State   Ministers  and  the  request  for   financial   help was secondary to the request to represent  the  cause   with

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the   use  of  influence.  The  High  Court  affirmed   that the  object  of  agreement  was   to influence  the  Central and   State   Ministers  and  to  advance  and   expand  all amounts necessary in that connection.      In  the face of the concurrent findings with  which  we agree,  I  have  no  doubt in our  mind  that  the  contract relating to the payment of the amount is not severable  from the  agreement  to promote the cause of Sajjid Yar  Jung  by wielding  the influence the plaintiff had.  Every  agreement of  which the object or consideration is unlawful  is  void. The consideration or object of an agreement is unlawful when the  court  regards  it as opposed  to  public  policy.   If anything  is  done against the public law or  public  policy that  would  be illegal in as much as the  interest  of  the public would suffer in case a contract against public policy is  permitted  to stand.  Public policy is  a  principle  of judicial                                                        340 interpretation   founded  on  the  current  needs   of   the community.  The law relating to public policy cannot  remain immutable.  It must change with passage of time.  A  bargain whereby  one  party  is  to  assist  another  in  recovering property  and is to share in the proceeds of the action  and such   assistance  is  by  using  the  influence  with   the administration,  irrespective of the fact that  the  persons intended to be influenced are not amenable to such influence is  against protection and promotion of public welfare.   It is  opposed to public policy.  In this view, we  would  hold that  the plaintiff cannot enforce the agreement to  recover the amount from the respondents.                            ORDER      The appeal is, therefore, dismissed with no order as to costs. R. S. S.                                Appeal   dismissed.                                                        341