TMI Blog1903 (8) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... meeting on the 17th June, 1897 passed a resolution, subsequently communicated to defendant 1, which had the effect of dispensing with, or remitting the performance by him of so much of his obligations as give rise to the present suit, and the surety relies on the provisions of Chapter VIII of the Indian Contract Act as entitling him to a discharge from liability. The case was heard by the First Class Subordinate Judge at Nasik with the result that he passed a decree for the plaintiff Municipality for ₹ 7,900. It came on appeal to this Court, and as it was by no means clear that the constitution of the meeting of the 17th of June 1897, had been properly and thoroughly investigated, the following issues were sent down:-- (1) Had noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the President? We are clearly of opinion that it was not; and however anxious we may be to overlook technicalities, it seems to us impossible for us to treat this meeting as one called by the President within the meaning of that section. But then it is argued by the Advocate General that even if that be so, still the defect is cured by sub-section 17; but we think that is not so; in the circumstances of this case the omission is not one that can be thus got over. But oven were this not so, the defence, it is contended, must fail, as there had been no remission or dispensation within the meaning of section 63 of the Contract Act, first because there was no communication of the resolution and, secondly, because the provision of section 30 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he consideration or part of the consideration for each other are called reciprocal promises. 8. Clause, (e) says that every promise and every set of promises, forming the consideration for each, is an agreement. It is only by means of a promise that there can be a dispensation or remission within the meaning of section 63; there must be a proposal of the dispensation or remission, which is accepted. But a promise as we read clause (e) is an agreement; for the words forming consideration for each other in clause (e) cannot qualify the words every promise ; they relate to the words every set of promises. Moreover, we think, it involves no straining of language to speak of a promise as an agreement; for an agreement does not necessa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th section 30 to which I have already alluded. The Advocate General, relying for this purpose on section 23 of the Indian Contract Act, has asked us to hold that there was no contract at all under which the plaintiff Municipality can claim. Apart from the fact that this is travelling outside the pleadings of the parties, we think, there is another reason why we cannot give effect to the contention. It is well recognized law in England that though a contract by a corporation must ordinarily be under seal, still where there is that which is known as an executed consideration, an action will lie though this formality has not been observed. Notwithstanding section 23 of the Indian Contract Act, we see no reason for not adopting the same view of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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