Principle of Pari-delicto

The principle of Pari-delicto is described in this way in Omkar Mal Versus Banwari Lal, created by the High Court.The principle of satisfaction is that when the friends of both parties are equal then the law favors that party. Has been done In other words, if the fault of both parties is equal, then the law does not interfere between them and does not leave them in their condition, that is, they do not try to ascertain their rights.

But this principle does not apply in the following situation: if the fault of the parties is not equal and it cannot be said that they are equally guilty then in that case this principle will not apply.

There are two exceptions to this principle, in which money or property given under an invalid void contract can be recovered.
  • If the fault of the parties is not equal, the lesser guilty party can get back the item given under the contract.
    Ex: A woman came to the insurance agent and gave premium on a policy which was illegal and zero. She was declared entitled to receive this money which has been given as premium because she was innocent.
  • If any part of the illegal purpose is not served, then the property given under such contract can be recovered.
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