The appellant, Best Theratronics Ltd. (BTL), appealed a trial judgment ordering it to pay an outstanding debt to Kirloskar Technologies (P) Ltd. (KTPL), its former agent in India.
BTL argued it should be relieved of the debt due to a perceived risk of prosecution under the Corruption of Foreign Public Officials Act (CFPOA) related to alleged corrupt practices by KTPL in India, and sought to delay payment.
The Court of Appeal dismissed the appeal, upholding the trial judge's finding that the alleged criminal conduct was unrelated to the debt at issue and that BTL failed to provide sufficient evidence to support its public policy argument against enforcing the contract.
The court reiterated that public policy considerations for setting aside contractual provisions should be applied sparingly.
