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Kuju Collieries Ltd vs Jharkhand Mines Ltd. & Ors on 12 August, 1974 cites

Kanuri Sivaramakrishnaiah vs Vemuri Venkata Narahari Rao (Died) on 20 March, 1959

A Division Bench of the Andhra Pradesh High Court in its decision in Sivaramakrisnaiah v. Narahari Rao (AIR 1960 AP 186 held that "In order to invoke section 65 the invalidity of the contractor agreement should be discovered subsequent to the making of it. This cannot be taken advantage of by parties who knew from the beginning the illegality thereof. It only applies to a case where one of the parties enters into an agreement under the belief that it was a legal agreement, i.e. without the knowledge that the agreement is forbidden by law proposed to public policy and as such illegal. The effect of section 65 is that in such a situation, it enables a person not in pari delicto to claim restoration since it is not based on an illegal contract but dissociated from it. That is permissible by reason of the section because the action is not founded on dealings which are contaminated by illegality. The party is only seeking to be restored to the status quo ante. Section 65 also does net recognise the distinction between a contract being illegal by reason of its being opposed to public policy or morality or a contract void for other reasons. Even agreement the performance of which is attended with penal consequences, are not outside the scope of section 65. At the same time Courts will not render assistance to persons who induce innocent parties to enter into contracts of that nature by playing fraud on them to retain the benefit which they obtained by their wrong".
Andhra HC (Pre-Telangana) Cites 5 - Cited by 7 - Full Document
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