Illegal liquor trade agreement void where licence transfer occurred without statutory sanction; recovery claim held unenforceable.

An agreement allowing transfer and operation of a foreign liquor tavern by persons other than the licence-holder, without the Commissioner's prior sanction, was held to contravene the Abkari law and rules. Because the statutory scheme required licensed control and barred transfer or sub-renting without approval, the arrangement was treated as defeating the object of the enactment and therefore void. The plaintiff could not seek court assistance to recover the balance of consideration arising from a business carried on in breach of those requirements, and the claim was not maintainable.

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Issues: Whether an agreement permitting transfer and conduct of a foreign liquor tavern without the Commissioner's sanction was illegal and void, and whether money claimed under such agreement was recoverable.

Analysis: The agreement contemplated conduct of the liquor business by persons other than the licence-holder and transfer of the licence in their favour without the prior sanction required by the governing Abkari law and rules. The statutory scheme required licensed control over liquor trade and prohibited transfer or sub-renting without the Commissioner's approval. An agreement made in contravention of such provisions was treated as defeating the object of the enactment and therefore void. Since the business had in fact been carried on in breach of the legal requirements, the plaintiff could not invoke the court's aid to recover the balance of consideration. The alleged collateral arrangement was not proved as a basis for relief against all defendants, and no permissible amendment could cure the defect at that stage.

Conclusion: The agreement was illegal and unenforceable, and the claim for recovery was not maintainable.

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