V. NARASIMHA RAJU vs V. GURUMURTHY RAJU AND OTHERS

The Supreme Court held that the arbitration agreement executed on December 30, 1943, was invalid under Section 23 of the Indian Contract Act, 1872, as its consideration was against public policy. The agreement involved a promise by the first respondent to withdraw a criminal complaint concerning non-compoundable offences, rendering the agreement unenforceable. Consequently, the court set aside the award made by the arbitrator, affirming that agreements founded on unlawful considerations cannot be upheld.