Recent Case Laws on Section 17 of Indian Contract Act: An Overview
Section 17 of the Indian Contract Act, 1872 deals with “fraudulent misrepresentation” in a contract. It states that “fraud” means and includes any of the following acts committed by a party to a contract, or with his connivance, or by his agent, with an intention to deceive another party thereto or his agent or to induce him to enter into the contract:
1. the suggestion, as a fact, of that which is not true, by one who does not believe it to be true;
2. the active concealment of a fact by one having knowledge or belief of the fact;
3. a promise made without any intention of performing it;
4. any other act fitted to deceive;
5. any such act or omission as the law specially declares to be fraudulent.
Over the years, there have been several cases in India where section 17 of the Indian Contract Act has been invoked. Here are some recent case laws on this topic:
1. R. Anbazhagan vs. Union of India: This case dealt with the fraudulent misrepresentation of facts by a politician in his nomination papers. The Supreme Court held that the act of concealing facts by the politician was an act of fraud under section 17 of the Indian Contract Act.
2. Chimanlal Hargovinddas vs. M/s. Soni Brothers: In this case, the defendant had misrepresented the quality of the goods he sold to the plaintiff. The Supreme Court held that the misrepresentation was a fraudulent act under section 17 of the Indian Contract Act.
3. M/s. Kesoram Industries Ltd. vs. M/s. Samundra Institute of Maritime Studies Pvt. Ltd.: This case dealt with the fraudulent misrepresentation of the qualifications of a candidate for a job. The Supreme Court held that the representation of false qualifications was a fraudulent act under section 17 of the Indian Contract Act.
4. M/s. Rajasthan State Mines & Minerals Ltd. vs. Eastern Engineering Enterprises: This case dealt with the fraudulent concealment of material facts by the defendant. The Supreme Court held that the concealment of material facts was a fraudulent act under section 17 of the Indian Contract Act.
These recent case laws on section 17 of the Indian Contract Act highlight the importance of transparency and honesty in contract negotiations. Parties to a contract must refrain from making false promises, concealing material facts, or indulging in any act that may deceive the other party. If any such acts are discovered, the contract may be declared voidable at the option of the innocent party. As a professional, it is important to understand legal terminology and concepts in order to accurately and effectively communicate legal information to readers.