[Landmark Judgement] Birla Jute Mfg. Co. V. State of M.P. (2002) 

Landmark Judgment Law Insider (1)

Published on: 25 July 2023 at 11:35 IST

Court: Supreme Court 

Citation: Birla Jute Mfg. Co. V. State of M.P. (2002) 

Honourable Supreme Court of India has held that when the consent to agreement is caused by undue influence the agreement is a contract voidable at the option of the parties whose consent was so caused. Even if such party had received any benefit under the terms of the contract the Court could still pass orders as to the voidability or otherwise of the contract but upon such terms and conditions as the Court may deem just.

Undue influence or duress is said to be subtle of the fraud whereby mysteries burden over the mind of a victim by insidious approaches. However it is essential to establish by facts on record, which are supported by any documentary or any other evidence to sustain the plea that the contracts are a result of undue influence or duress by the party aggrieved.

2. Learned counsel, appearing for the appellant urged that the undertaking given by the appellant Company was under duress and, therefore, it is not an undertaking in the eye of the law and the appellant is not liable to pay the water charges under such circumstances. There is no material before us to come to this conclusion that the undertaking given by the appellant was under duress. On the contrary we find that the appellant had given the solemn undertaking voluntarily. We, therefore, find no merit in the appeal.

Drafted By Abhijit Mishra

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