Case Comment – Veeramma V. Appayya (1955)

Manassvi Sharrma, Chanakya National Law University, Patna

CITATION: 1955 SCC AP 269

BENCH : Justice Viswanatka Sastri

JUDGEMENT: 16 October 1955

INTRODUCTION

The landmark case of Veeramma v. Appaya(1995) is a landmark case of exceptions of privity of contract which is the upkeep or marriage provisions under a family arrangement. A common law concept known as privity of contract stipulates that only parties to a contract may bring legal action against one another to enforce it, and that no outsider may impose obligations on a non-party, even if the deal was entered into for that person's benefit.

There are several statutory and equitable exceptions to the law of privity of contract. The most notable of these is found in the Contracts Act, which allows a third party to enforce a contract when it either explicitly states or implies that it will offer a benefit of that kind.

There are three exceptions of doctrine of privity of contract under the Indian scenario which are- beneficiary under a contract where there is a trust or fiduciary relationship which was highlighted in Muhammad Khan v. Husaini Begum.1 second is Conduct , acknowledgement or Admission in this if one person recognises the right of another then he may be liable for the same , this was highlighted in the case Narayani Devi v. Tagore Commercial Corporation Ltd2 and the third is the provision for maintenance or marriage or family settlement which was further highlighted in the present case. The judgement given by the Andhra Pradesh High Court in this case marked a turning point with regards to protecting the rights of the family members in these contracts and it made easier for the third party to enforce the contract when it is made

for their benefit.