"Fraud" and the Application in Contractual Liability

 "Fraud" and the Application in Contractual Liability

In the case of Ali v. Ummu Selma [2018] GCtR 5776 (Kerala), important issue related to fraud was discussed.

Reference was made to S.17 of Indian Contract Act, 1872. S.17 employs the terms "intent to deceive", "indue him to enter into", "active concealment of a fact by one having knowledge or belief of the fact". 

It was held that "non-disclosure of vital information which may affect the marital contract would amount to active concealment of a fact. Muslim marriage is treated as a contract and if fraud is committed by either of the parties by non-disclosure of a material fact, which has bearing on the consent to be given by the respective parties, the marriage becomes voidable at the option of the party who suffers the fraud. Concealment of a vital fact for entering into a contract of marriage by itself amounts to fraud and the marriage can be declared as null and void. If the marriage contract is the outcome of fraud, the contract becomes voidable."