Indian Contract Act -Amendment 2024
Central Government on 02nd February 2024, notified the Indian Contract (Amendment) Bill, 2024 amending the Indian Contract Act 1872.
What is amended ? Section 15 of the Indian Contract Act that defines 'Coercion' stands amended.
What does sec 15 say?
Definition of coercion as defined in Sec 15 of Contract Act is:
Coercion' is the committing, or threatening to commit, any act forbidden by the Indian Penal Code or the unlawful detaining or threatening to detain, any property, to the prejudice of any person whatever, with the intention of causing any person to enter into an agreement.
Amendment:
In the Sec 15 definition of coercion, the words "any act forbidden by Indian penal code" is substituted by the words " any act, the committing of which or threatening to commit which is punishable by any law for the time being in force'
Statement of object given by Government in the bill:
Definition of ‘Coercion’ provided for in the Indian
Contract Act, 1872 is not exhaustive. It does not apply to situations in
modern times, where coercion can be induced through numerous ways. The 13th
Report of the Law Commission of India, which was chaired by Shri M. C.
Setalvad, also suggested amending the current definition under Section 15 to make it
comprehensive
why is it amended?
Going by the definition of Coercion above, it means committing, or threatening to commit, any act forbidden by the Indian Penal Code, BUT
(a) Indian Penal Code, which is now replaced by "Bharatiya Nyaya Sanhita" declares offences as "punishable"
and not merely "forbidden".
(b) Also, Indian Penal Code is not the only law in India, that
defines and punishes offences. There are many laws that define and punish offences in India.
Hence the requirement to replace the present definition with a wider expression, covering all the offences forbidden by laws in India.