Violation of section 269ST doesn’t render agreement unenforceable in Civil Court

Birmala Projects Pvt. Ltd. Vs Ashwani Ahluwalia (Bombay High Court) Bombay High Court held that mere receipt of cash in violation of Section 269ST does not, by itself, render the underlying agreement void or unenforceable in a Civil Court. Statutory penalty prescribed for contravention of Section 269ST is imposed upon the recipient and not the payer, and the imposition of such a penalty does not automatically nullify the underlying transaction. Facts- The plaintiff entity is a company engaged in the business of constructing and redeveloping immovable properties, either on a contractual or coll...