Agreements In Restraint Of Legal Proceedings

In this case, the parties were businessmen in Calcutta. The defendant Rajcoomar suffered a loss as a result of the applicant`s competition and entered into an agreement with the claimant that, if he closed his business there, he would pay him all the advances he had paid to his employees. Where the defendant did not pay, the applicant brought an action to recover the amount, but did not do so because it was a trade restriction which was therefore not applicable in the courts. The original text of section 28 of the Indian Contract Act, 1872, which cancelled agreements to restrict legal proceedings (or clauses), has undergon numerous changes over the years. Indeed, in 1997, the original section 28 was replaced by a new one, after the recommendations of the 97th report of the Indian Commission were taken into consideration. . . .