repayment of money of a supply order

Querist : Anonymous (Querist) 10 April 2011 This query is : Resolved
My brother had been supplied books by a book supplier for Rs 4 lakhs in year 2005 for a contract to supply books to a college. There was a criminal case registered in 2005 itself, against my brother for securing the contract of supply of books by fraud and forgery and the unsold books were seized by the police worth 2 lakhs which are still in police custody till today. My brother had paid Rs 2.5 lakhs to the books supplier in the year 2005 itself. But the balance of rs 1.5 lakhs was not paid to him as the books were not sold and the police had seized them in 2005 itself.Now can the books seller ask for the remaining Rs 1.5 lakhs legally?? Is it merely a money suit now?? And if it is so , then is it time barred by the limitation act? In the original contract there was no clause that if the books remain unsold the books supplier shall not be paid the entire money.
Thank you in anticipation for your help

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Raj Kumar Makkad (Expert) 10 April 2011
This is now a matter of recovery of balance amount but definitely law of limitation shall come in the way.

Devajyoti Barman (Expert) 10 April 2011
When an agreement is vitiated by fraud and forgery the same becomes a void agreement. So now there is no existence of that agreement and hence you are not liable to make any payment.

Querist : Anonymous (Querist) 10 April 2011
I humbly thank you sirs for your valuable advice.

H. S. Thukral (Expert) 10 April 2011
the contract of supply of books between your brother and the college was secured by fraud but as far as contract between your brother and the supplier, it is valid and enforceable subject to limitation.

Querist : Anonymous (Querist) 10 April 2011
Since the matter pertains to 2005 and the supplier did not enforce the money suit till date,irrespective of the fact that there was a case in progress,is his claim as on today, hit by the limitation act?It is a mere breach of contract and the only remedy was a money suit, which is now time barred as it pertains to a contract executed 6 years ago.

R.Ramachandran (Expert) 10 April 2011
Is this the one off transaction with the book supplier or you have any running/continuing business with him (i.e. purchase of books etc., apart from the one where you have to pay 1.5 lakhs)?

Devajyoti Barman (Expert) 10 April 2011
If the agreement with you and the supplier was made with knowledge and intention that fraud would be exercised to send the books to the college then I afraid that the contract is a void one.

Querist : Anonymous (Querist) 10 April 2011
Dear Mr. Ramachandran,
Thanks for your reply. It was a mere one off transaction with the book supplier.There was no other transaction with the bookseller ever after.
Thanks

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