Raghunath Prasad v Sarju Prasad
Raghunath Prasad v. Sarju Prasad
1. Facts:
The case involved a contractual dispute between Raghunath Prasad and Sarju Prasad.
The central issue was whether the consent to the contract was free, or if it was vitiated by undue influence.
2. Legal Issue:
Whether the contract between the parties was valid or voidable on the ground of undue influence.
The question was if one party had exercised dominance or control over the other to influence consent unfairly.
3. Judgment:
The court held that the contract was voidable because undue influence was clearly established.
It was found that the party in a position of power used that to obtain consent unfairly.
The court reaffirmed the principle that when consent is obtained through undue influence, the contract is not valid.
4. Significance:
This case is an important precedent regarding undue influence under Section 16 of the Indian Contract Act, 1872.
It clarifies that contracts obtained through dominance or abuse of a fiduciary relationship are voidable.
Emphasizes protection of the vulnerable party in a contractual relationship.
5. Related Case Law for Context:
M.C. Chockalingam v. M.C. Mariammal (1967): Explained undue influence and dominant position.
All India Institute of Medical Sciences v. Abhishek Srivastava (2010): Further elaborated the scope of undue influence.
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