Indian Contract Amendment Act 1997
Section 28B: Agreements in Restraint of Legal Proceedings Void
The Indian Contract Amendment Act 1997 introduced Section 28B to the Indian Contract Act 1872, rendering void any agreement that absolutely restricts a party from enforcing legal proceedings.
Exceptions:
However, there are exceptions to this rule, such as:
- Agreements to refer disputes to arbitration
- Agreements to settle disputes that have already arisen
- Agreements without consideration that are in writing and registered or that promise compensation for something done
Recommendation:
After considering all aspects of the matter, it is recommended that Section 28 of the Indian Contract Act 1872 be revised to align with the provisions of Section 28B.
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