Section 28b Agreements In Restraint Of Legal Proceedings Void

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.