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Suresh CSLLM (Service)     28 November 2009

No binding Agreement

Dear All

In India, is it possible to enter in to 'No bidning Agreement' It means e.g. parties have entered in to Agreement with  a specific clause effecting that either party shall not resort legal remedy and shall not approach to court in case of breach.

The Said Agreement  is otherwise valid and enforceable in court of law.

Suresh Savaliya
CS, LL.M.

 

 

 



Learning

 3 Replies

Tapan Amoria (Manager H.R.)     28 November 2009

Dear Suresh

It is not possible to force any clause which directly or impliedly says that "either party shall not resort legal remedy". In other words right of Legal remedy cannot be curtailed by any agreement.

Mohan Panikkar (Advocate)     29 November 2009

 Section 28 of the Contract Act is very clear on the issue Agreements in restraint of legal proceedings- it is void. However, exception will be an arbitration clause. Please see the section for details

 



Raj Kumar Makkad (Adv P & H High Court Chandigarh)     29 November 2009

There is no chance to disagree with the opinion of other experts on this common subject.


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