ARIES ADVERTISING BUREAU vs C.T. DEVARAJ

The Supreme Court upheld the Madras High Court's decision that there was no privity of contract between the appellant and the first respondent, C.T. Devaraj, under Section 70 of the Indian Contract Act, 1872. The Court found that the appellant's advertisement was intended to benefit the second defendant, Balakrishnan, and not Devaraj, who was merely a financier. Consequently, the appeal was dismissed as the respondent did not derive any benefit from the advertisement, and thus, the liability could not be imposed on him.