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Rattan Chand Hira Chand v. Aksar Navaz Jung

(AIR 1991 SCW 496)Case law on Public Policy

Presented By:Geethika Reddy(22)

Bishwajeet jha (23)

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Public policy is an attempt by a government to address a public issue by

regulations, decisions, or actions related to the problem.

Numerous issues can be addressed by public policy including crime,education, foreign policy, health, and social welfare.

An agreement harmful to the public welfare or interest is considered

void as it is against public policy.

Public policy cant be considered as always the same.

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CONT..

The making of public policy for a country as large, populous and diverse as India is

intrinsically a more complex task than in a smaller political unit.

The process to create a new public policy typically follows three steps: agenda-

setting, option-formulation, and implementation.

Law refuses the contracts of mischievous tendency as they are injurious to the

interest of state of public.

Public policies is always an unsafe and treacherous ground for legal decisions.

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Characteristics of public policy

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RATTAN CHAND HIRA CHAND Vs. ASKAR NAWAZ JUNG

ACT:

Indian Contract Act-Sections 23, 65, 69, 70 and 73(2)-Contract wherebyone party is to assist another in recovering property and sharing

proceeds by using influence-Whether opposed to 'public policy'.

FACTS ABOUT THE CASE

Nawab Salar Jung III, a celebrity of the erstwhile State of Hyderabad expired on March 2, 1949 leaving

behind him no issue but a vast estate. As was expected, several persons came forward claiming to be hisheirs, and among them were Sajjid Yar Jung and Turab Yar Jung who claimed to be his first cousins. The

Nizam by a notification of May 9, 1949, appointed a Committee to administer the estate of the late

Nawab Salar Jung. On the merger of the Hyderabad State, the Central Government by the Nawab Salar

Jung Bahadur (Administration of Assets) Act 1950, continued the Committee and also provided that no

suit or other legal proceeding for the enforcement of any right or remedy in respect of any asset, shall

be instituted in any court by any person other than the Committee except with the previous information

of the Central Government.

In the meanwhile, on May 31, 1949, the Nizam had already appointed a Commission to enquire into the

question of succession to the estate, and one of the questions referred to the Commission was whether

the Jagir of the late Nawab Salar Jung escheated to the Government and another was the ascertainment

of his heirs. The Commission was unable to proceed with the inquiry as some of the claimants filed a

writ petition in the High Court of Andhra Pradesh challenging the jurisdiction of the Commission toenquire into the question of succession The High Court, by its decision of September 23, 1

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Decision..

In this case thesupreme court hasheld that a contract

which has a tendency

to injure publicinterest or publicwelfare is one against

public policy.

What constitute aninjury to public interest

or welfare is

dependent upon timesand climes.

Plea that anagreement is nullity

being opposed to

public policy, can be

taken even by a personwho has earlier

consented to theagreement.

The social

environment in whichthe contract is soughtto be enforced would

decide the factor, thenature and the degree

of the injury.