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Section 57: Reciprocal promise to do things legal, and also other things illegal

Indian Contract Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1872
Section 56 All 266 Sections of Indian Contract Act Section 58

Legal Commentary & Landmark Judgments: Section 57

Section 57 of the Indian Contract Act, 1872 codifies the doctrine of severability for reciprocal promises, providing that where persons reciprocally promise, first, to do certain things which are legal, and, secondly, under specified circumstances, to do certain other things which are illegal, the first set of promises is a valid contract, but the second is a void agreement.

  • Bifurcated Reciprocal Promises: The contract contains two distinct, separable tiers of reciprocal promises: a primary set that is lawful, and a secondary contingent set that is illegal or prohibited by law.
  • Doctrine of Statutory Severability (Blue Pencil Rule): Where the legal covenants can be cleanly severed from the illegal covenants without eviscerating the core lawful consideration, the court will sever the illegal branch.
  • Dual Legal Status: The lawful branch constitutes a valid, binding, and enforceable contract; the unlawful branch is void ab initio under Section 23/24, without infecting the validity of the legal branch.
Key Landmark Precedents:
  • Bhikham Chand v. Harish Chandra AIR 1954 Pat 419: The High Court applied Section 57 to enforce a contract for the sale of premises, holding that while an ancillary agreement to use the premises for an unlawful purpose was void, the primary contract of conveyance remained valid and enforceable.
  • Central Inland Water Transport Corpn. v. Brojo Nath Ganguly (1986) 3 SCC 156: The Supreme Court affirmed that an unconscionable or illegal covenant can be severed under statutory severability principles, leaving the valid commercial or employment substratum intact.
Courtroom Practice & Strategic Litigation Guidance:

In commercial litigation where an agreement contains restrictive covenants (such as unreasonable post-termination non-compete clauses or illegal forfeiture provisions), rely on Section 57 to apply the blue pencil rule. Argue that the unlawful restraint can be severed, preserving the validity and enforceability of the primary debt, supply, or purchase obligations.

Section 56 All 266 Sections of Indian Contract Act Section 58