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K.S.R. Chakrapani Chettiar vs S. Guruswami Reddia on 25 January, 1983

In Ramalingiah v. Subbarami Reddi. (supra) Panchapagesa Sastri J. had no consider the validity of a knock out agreement by which certain villagers had agreed not to bid against each other, but to put up one person as the sole bidder. It was contended that such an agreement not to bid against each other is not illegal under the common law nor an auction would get invalidated because of such an agreement and in upholding the validity of such an agreement, the absence of a statute here as in England to remedy the evil of a knock out combination was noticed and it was held that such an agreerrent cannot be invalidated on the ground of public policy. Considered in the light of the principles laid down in the decisions referred to above, we are of the view that at best the agreement in this case would amount to a mere withdrawal of the application made by the defendant for the grant of a stage carriage permit on the route Panruti-Arasur and that such an agreement is not opposed to public policy.
Madras High Court Cites 8 - Cited by 0 - V Ramaswami - Full Document
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