Issue-specific statutory bar ruling preserves trial on remaining contract and validity questions

The decision on the additional issue under the Foreign Exchange Regulation Act, 1973 was confined to that issue alone and did not prejudice determination of the remaining issues in the suit. Because the additional issue overlapped only limitedly with one original issue, the court clarified that no wider preclusive effect could attach to the earlier finding. The enforceability and validity of the agreement, together with the other statutory objections and original issues, remained open for trial and were to be decided independently on their own merits.

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Issues: Whether the decision on the additional issue under Section 31 of the Foreign Exchange Regulation Act, 1973 was confined to that issue and would not prejudice adjudication of the remaining issues in the suit.

Analysis: The appeal arose from a suit in which four original issues remained pending, while an additional issue on the statutory bar under Section 31 of the Foreign Exchange Regulation Act, 1973 had already been decided. Since the additional issue overlapped only to a limited extent with one of the original issues, there was a real apprehension that the earlier finding might be treated as having wider consequences. To avoid any prejudice, the decision was expressly confined to the additional issue alone and the remaining issues, including the enforceability and validity of the agreement and other statutory objections, were kept open for determination at trial.

Conclusion: The decision on the additional issue was held to be issue-specific and not to operate as a bar or prejudice the adjudication of the remaining issues in the suit.

Final Conclusion: The clarification protected the pending trial from any unintended preclusive effect and preserved the parties' rights on all issues other than the additional issue already decided.

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