Principle of in pari delicto for denial of restitution is applicable where the claimant is more responsible for the illegality or the parties are considered to be equally responsible. In adjudicating a claim of restitution under S. 65 of the Contract Act, held, the court must determine the illegality which caused the contract to become void, and, the role the party claiming restitution has played in it. If the party claiming restitution was equally or more responsible for the illegality (in comparison to the defendant), there shall be no cause for restitution. In the present case, the appellant has been held to be in pari delicto. The decision of this Court in CPIL (supra) leaves no manner of doubt that the appellant was among the group of licensees who were found to be complicit in obtaining benefits under the ―First Come First Serve‖ policy of the Union government at the cost of the public exchequer. Thus, the appellant, held not entitled to claim a refund of its Entry Fee.
[Loop Telecom & Trading Ltd. v. Union of India, (2022) 6 SCC 762]