Law:

Section:

(a) Civil Procedure Code (V of 1908)-------O. V11, R. 2---Suit for recovery of money was dismissed concurrently---Contention of plaintiff was that he had entered into an agreement with the defendant under which the return of said loan was to be within fifteen days and in case of default by the defendant, an equal amount of penalty would be payable by the defendant---Validity---Plaintiff had failed to prove the payment before the courts below; or his story of making the alleged payment and entering into the agreement in question; which were held doubtful and could not be given any weight---Plaintiff thus failed to show legitimacy of the agreement---Agreement pertaining to the payment of loan and repayment of the loan with the penalty equal to the amount of the loan; was not covered by any law as the same did not match with principles of equity of fairness and was rather a show of cruel conduct and unwarranted exorbitant amount of profit against a loan and therefore, the alleged agreement was nothing but a posture of wrongful gain by exploitation of a needy person---Said alleged agreement also stood hit by the law and rules relating to the business of dealing with lending money as loan or financial facility against profit or interest; which amounted to money lending business or banking, and penalty in alleged contract amounted to claiming illegally a forceful interest against a friendly loan, which of itself, was not fair in terms of law and equity---Such agreement or contract, legally speaking, was void in nature and was not open to be enforced through a court of law---Revision was dismissed, in circumstances. (b) Contract Act (IX of 1872)--- ----S. 2(j)---Void contract---Agreement pertaining to the payment of loan and repayment of the loan with the penalty equal to the amount of the loan; was not covered by any law as the same did not match with principles of equity of fairness---Such agreement or contract, legally speaking, was void in nature and was not open to be enforced through a court of law. S.M. Salam Kazmi for Applicant. Date of hearing: 2nd September, 2010. ORDER SYED ZAKIR HUSSAIN, J.--- This revision application has been preferred by the applicant…

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