Court caseAIR 1959 SC 781

The parties formed a partnership to enter into wagering contracts in wheat with certain firms, agreeing to share profits and losses. The wagers resulted in losses, which Mahadeodas paid in full. He then sued Gherulal for his share of the losses.

The Supreme Court held that a wagering agreement is void under section 30 but is not forbidden by law, and the object of the partnership was therefore not unlawful under section 23. 'Public policy' is an unruly horse and courts should not invent new heads of it; gambling has never been treated as opposed to public policy in India. 'Immoral' in section 23 is confined to sexual immorality. The partnership was enforceable and Gherulal had to pay his share.