And even in the case of stock markets, betting on the company`s stock is not based on chance, but on a thorough analysis of the shares of different companies, and studying the model suggests which shares of companies will rise high, and this analysis is a skill. And Article 30 is silent on this again. And this shows that Article 30 has a limited scope, perhaps because of the time when the law was formulated, but now betting has become a huge concept and therefore contract law needs to improve the scope of its paris agreement. It is important for a betting agreement that each party can win or lose, win or lose, depending on the question of the event and can therefore remain uncertain until this problem is known. If one of the parties can win but cannot lose, it is not a betting agreement. ILLUSTRATION – A and B are two F1 drivers. Ram said he would pay Shayam $1,000 if A won, and Shyam said he would pay Ram $1,000 if A lost. This is a betting agreement between Ram and Shyam. As noted above, when in the event of losses in foreign exchange trading, a number of Indian companies argue that derivative transactions have the nature of betting arrangements and are therefore unenforceable in indian courts under Article [xxi] and therefore do not create any liability or financial obligation with respect to the repayment of the loan to the bank. As a result, many conservative Indian banks, such as the State Bank of India, have long refrained from any kind of derivatives transactions with their customers.
In the case of Gherulal Parakh v. Mahadeodas Maiya[xxii] wondered whether a partnership established for the purpose of entering into futures contracts for the purchase and sale of wheat in order to speculate on an increase and decrease in the price of wheat in the future was a gamble and whether it was affected by Article 30 of the Contracts Act. However, the Supreme Court ruled that such a partnership was not illegal, even if the company for which the partnership was formed was classified as a bettor. .