UNION OF INDIA vs SURJIT SINGH ATWAL

The Supreme Court held that a plea of non-compliance with Section 175(3) of the Government of India Act, 1935 is a mixed plea of fact and law, which must be specifically pleaded in the written statement. The Court ruled that the illegality of a contract cannot be raised after several years if not initially pleaded, as it would prejudice the plaintiff's case. The Court emphasized that under Order VI Rule 8 and Order VIII Rule 2 of the Civil Procedure Code, a bare denial of a contract does not imply a denial of its legality, and all matters affecting maintainability must be raised in the pleadings.