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Mar 30, 2009

Contract- Sec 23 Zoroastrian Cooperative Housing Society Ltd. and Another v. District Registrar, Cooperative Societies (Urban) and others ((2005) 5 SCC 632) "In the context of Section 23 of the Contract Act, something more than a possible or plausible argument based on the constitutional scheme is necessary to nullify an agreement voluntarily entered into by a person". "Normally, as stated by this Court in Gherulal Parakh v. Mahadeodas Maiya, the doctrine of public policy is governed by precedents, its principles have been crystallised under the different heads and though it was permissible to be expound and apply them to different situations it could be applied only to clear and undeniable cases of harm to the public. Although, theoretically it was permissible to evolve a new head of public policy in exceptional circumstances, such a course would be inadvisable in the interest of stability of society."

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