Indian Kanoon - Search engine for Indian Law

33. In AIR 1962 All 147 which is a Full Bench decision of that Court, it was held that an agreement for fixation of rent before the allotment order under Section 7 (2) of the U. p. Act would nonetheless be binding on the parties. There was ejectment decree against the tenant and in execution thereof a compromise was arrived at and rent was fixed between the parties. Subsequent to the agreement, an allotment order was passed under Section 7 of the U. P. Act. The argument was raised that the compromise was invalid because it contravened the provisions of the Act. It was held that the agreement was binding on the parties as there was no prohibition against such agreement for fixation of rent in the Act itself. The aforesaid Full Bench decision of Allahabad High Court was followed in another Full Bench decision of that Court of which the report is AIR 1964 All 1 (FB). A contract of tenancy was entered into in violation of order under Section 7 (2) of the U. P. Act. It was held that the contract of tenancy was valid and was not forbidden bv law. None of the provisions of the Act was defeated because of such an agreement culminating in the contract of tenancy. In this manner the compromise independent of the Act was held valid and binding between the parties.