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CA Foundation doubt

What are stifling prosecution, maintenance and champerty, and wagering agreements under the Contract Act?

Stifling prosecution

Stifling prosecution Maintenance and champerty Wagering agreement kya hota hai aap samjha sakte ho ?

Asked by Himesh··2 answers

2 replies

  1. BrunoAI answerAI first answer — verify with your teacher

    All three are agreements that the law will not enforce (Indian Contract Act, 1872): 1. Stifling prosecution: an agreement to drop or not file a criminal case in return for money or another benefit. It is opposed to public policy, so it is void under Sec 23. Example: A agrees not to file a theft complaint against B if B pays Rs 10,000. 2. Maintenance and champerty: Maintenance means helping someone with a lawsuit (money or support) when you have no interest in it. Champerty means giving that help in return for a share of whatever is won. In India these are not automatically void. They are void only if the deal is unfair or extortionate, or meant to gamble in litigation. 3. Wagering agreement (Sec 30): a promise to pay money or money's worth on an uncertain event. Neither party controls the event, and one side will win while the other loses (for example, a bet on a match result). It is void. It is not illegal, though, except in Maharashtra and Gujarat, where it is illegal by law.

  2. Gaurii

    In simple words Stiflling prosecution is like a private settlement between parties to drop pause or withdraw any case or other investigation in exchange of money or any other considerations Maintenance and champerty means Like to let a third party join who is unconnected to the case in exchange of any consideration or money paid to him for winning the lawsuit And wagering agreement is Where people win or loss money or other things on happening of an uncertain even it is unenforceable by law

Related questions

Is a wagering agreement illegal or only void?

It is void under Section 30 of the Indian Contract Act, but generally not illegal. Collateral transactions to a wager are therefore usually valid, except where state law makes wagering illegal.

What is the difference between maintenance and champerty?

Maintenance is supporting someone else's lawsuit without having an interest in it. Champerty is giving such support in return for a share of what is recovered.

Why is stifling prosecution void?

Crimes are offences against society, so private deals to stop a prosecution interfere with justice and are opposed to public policy.

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