Legal Question in Civil Rights Law in India

A boy of 17 years,who lives in Delhi,who is the owner of farms in Gurgaon and UP. enters into an agreement with a company(say XYZ pvt.Ltd)for their service in management in farms.Standard terms of agreement were that the minor is liable to pay 25% of annual proceeds managed by the co. to it along with rs.150000 p.m as consultation fee.The agreement also stated that if the co. fails to provide the assured return of 1 cr.p.a.they are liable to pay rs.25lac to minor.The agreement was for the term of 3 years and concluded on 31Dec.1998.The co.was able to produce only 50lacs.Therefore,the minor filed the suit for penalty of 25 lac in Nov1999 at Delhi.In reply XYZ took shelter of a clause in the agreement that any claim arising out of this contract shall be made within 6 months from the date of conclusion of this agreement not afterwards and only in the courts in Kanpur and UP only.How can the co. justify itself.

Asked on 7/01/13, 10:41 am

Rajiv Chandhok Ph: +919810050896 https://www.linkedin.com/in/rajiv-chandok-0827b733/

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The agreement is void ab initio. Anyways the claim is barred under the clause and delhi courts do not have jurisdiction.

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JSR/5713

Answered on 7/05/13, 12:48 am

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