DORASWAMI IYERV.

ARUNACHALA AYYAR (1935)

43 LW 259 (MAD.)
Doraswami Iyer vs Arunachala Ayyar
Case deals with the point that for
consideration to be valid, it has to move
at the desire of the promiser and must
have value in the eyes of law. Section
2(d) of the Indian Contracts Act says,
when at the desire of the promiser, the
promisee or any other person does or
abstains from doing an act, such an act
is called the consideration for the
promise. Section 2(d) explicitly mentions
'at the desire of the promiser', thus an
act, abstinence, or promise at the desire
of the third party is not covered.
However, the consideration from the
promisee need not benefit the promiser
and can move from the promisee as well
as a third party.

FACTS

• The defendant, who was a trustee

in the temple, entered into a
contract for the necessary repairs of
the temple which was initially
initiated by village common funds
were now required more than work
proceeded.
• A subscription list for the same was
issued to raise money. The
petitioner put himself down in that
list for 125/-, and it is to recover the
sum this particular suit was filed.
• The lower court decreed the suit
and said it was a perfectly good
contract and 125/- can be enforced
as consideration. The petition was
filed by the plaintiff in the High
Court.
ISSUE

• Is there a valid consideration in this

particular case?
RATIO DECIDENDI

The Honorable Judges present to hear

this case was Justice Cornish. He was
of the opinion that-

1. It cannot be said that mere promise

to subscribe a sum of money or the
entry of such promised sum in a
subscription list secures
consideration.
2. There must have been some
request or demand by the promisor
to the promisee to do something in
consideration of the promised
subscription.
There was no consideration in this
contract.

DECISION
The honorable court held that it was a
bare promise unsupported by
consideration. There is no evidence that
there was any request by the subscriber
to the plaintiffs to do any temple repairs
or any undertaking to do anything by
them when he put his name in that list
for 125/-. Therefore, the suit ought to be
dismissed, and the petition was allowed
with costs as well.

CONCLUSION

This judgment puts forth the point that

for a consideration to be valid, it has to
move at the desire of the promisor and
must have value in the eyes of law. It
clarifies that the acts have to be done at
the request of the promisor, even if there
is no personal benefit to the promisor
are considered as good consideration.©
Ali