K.Nagamalleshwara Rao And Ors vs State Of Andhra Pradesh on 14 March, 1991
In Chandra Sreenivasa Rao v. Korrapati Raja Rama Mohan
Rao and Anr., A.I.R. 1952 Madras 579, Subba Rao J., as he
then was, while considering the word "object" in s. 23 of
the Contract Act in the context of enforceability of the
debt secured to celebrate the marriage of the minor which
was prohibited by the Child Marriage Restraint Act, held
that the word "object" in s. 23 meant "purpose" or "design"
of the contract. The purpose of borrowing was unlawful as it
was opposed to the public policy of celebrating the
marriage of a minor in violation of the statutory
provisions, and therefore, the promissory note was held to
be unenforcable. An agreement between A & B to purchase
property at an auction sale jointly and not to bid against
each other at the auction is perfectly lawful, though the
object may be to avoid competition between the two. But if
there is an agreement between all the competing bidders at
the auction sale, be it of the court sale or revenue sale,
or sale by the government of its property or privilege and
formed a ring to peg down the price and to purchase the
property at knock out price, the purpose or design of the
agreement is to defraud the third party, namely , the debtor
or Govt. whose property is sold out at the court auction or
revenue sale, or public welfare. The object or consideration
of the contract, oral or written, to share such property is
unlawful. There is also implied "injury to the debtor"