Nothing comes from Nothing
- This phrase literally means if someone is entering into one agreement and create agreement but such agreement is not valid only than how one can take the benefit or can make the use of such agreement as agreement is nothing and from nothing we cannot take anything. - Basically, if someone is building agreement by mentioning various provisions and clauses for future need so for such agreement the provisions and clauses must be enforceable , accurate and reliable than and then only one can gain benefit from such agreement - Therefore, one can’t make something out of nothing.
- Person A and Person B indulged into one partnership firm randomly without making any proviso, after sometime due to some conflicts between them they were not able to come to a conclusion in sharing profit and loss ratio as nothing was mentioned in the deed apart from this no one was willing to comprise anything . So here we can analyze that as the partnership between them itself not valid or enforceable and accurate that how they will get something from nothing.
- Khardah company LTD vs Raymon &Co.Private Limited[1]
- The appellant(company) entered into contract with respondent where the respondent have to deliver some goods and same contract provides clause , if some disputes arise than it will be referred to Bengal Chamber of Commerce.
- On the failure on the part of respondent the appellant applied to said chamber .and the respondent contended under Sec-33 of Arbitration Act.
After appeal process,the Division Bench held the contract to be illegal as it was in the contravention of the Central Government notification .again under article 133 of constitution of India appeal filed to SC , the Supreme Court held when an agreement is invalid, every part of it including the clause as to arbitration contained therein must also be invalid and the subsequent proceedings too.
[1] SC 1962 AIR 1810
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