Agreements in Restraint of Legal Proceedings in India: A Comprehensive Guide
Agreements in restraint of legal proceedings in India are contracts that prohibit an individual or a group from initiating legal action against the other party. These agreements are usually entered into by businesses or individuals who seek to limit their legal liabilities.
However, such agreements are not always legally enforceable in India. In fact, the Indian Contract Act, 1872, strictly prohibits agreements that restrict a person’s right to initiate legal proceedings.
In this article, we will discuss the different types of agreements in restraint of legal proceedings in India and their legal implications.
Types of Agreements in Restraint of Legal Proceedings
There are two types of agreements in restraint of legal proceedings:
1) Absolute Agreements: These agreements completely restrict a person from initiating any legal action against the other party. Such agreements are considered void under the Indian Contract Act, 1872.
2) Partial Agreements: These agreements limit a person’s right to initiate legal action to certain extent. For instance, a partial agreement may prohibit an individual from initiating legal proceedings without first seeking arbitration or mediation.
Legality of Agreements in Restraint of Legal Proceedings
Agreements in restraint of legal proceedings are generally considered void under Indian law as they are often seen as an attempt to subvert the judicial system. However, there are certain exceptions where such agreements may be considered valid.
For instance, a partial agreement that requires a party to seek arbitration or mediation before initiating legal proceedings may be considered enforceable. In such cases, the parties to the agreement may have to follow the dispute resolution mechanism agreed upon.
Moreover, if the agreement is entered into between two parties who have already initiated legal proceedings, it may be considered valid. However, such agreements may only be enforced after the court has approved them.
Legal Implications of Agreements in Restraint of Legal Proceedings
If an agreement in restraint of legal proceedings is found to be valid, it will be legally binding on both parties. The party that initiates legal proceedings in violation of the agreement may be liable to pay damages for breach of contract.
However, if the agreement is found to be void, the parties may initiate legal proceedings against each other without any restrictions.
Conclusion
Agreements in restraint of legal proceedings are a complicated matter under Indian law. While partial agreements may be considered enforceable, absolute agreements are generally considered void. As a copy editor with experience in SEO, it is important to remain vigilant and do your research before drafting or reviewing such agreements.