Anil Lalcheta 19 July 2017

Valid or illegal??

"A" and "B" enter into a contract, whereby B is to receive goods from A and A is to receive money worth rs. 10000 from B ........... However B fails to pay the said amount within the time period..... As a consequence A files a suit against B for recovery of money...... After some time B knew that he is guilty.... So he contacts A and says that u withdraw the suit and i promise to pay u the said amount + Rs 5000 within 3 months......... Now if B does not pay 10000 + 5000 than can A enforce the subsequent agreement which says u withdraw case and i shall pay u 10000+5000??????? CAN IT BE SAID as STIFLING PROSECUTION??? Or valid contract??

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Siddharth Srivastava (Advocate) 19 July 2017

You just ask B to record the settlement in court in pending case and instead of withdrawing the case make a request the court for 3 months so B could comply with its commitment. Alternatively instead of withdrawing the case you can get the suit stay sindie so that if B does not comply with its commitment you can get the case reopened. You can also opt for consent decree.

Ms.Usha Kapoor (CEO) 20 July 2017

Here B's promise to pay more,i.e.,original RS10000+5000 more is a valid contract and not stifling prosecution of A.If A' withdraws the case of Rs.10000 money suit against him B agrees to pay another sum of Rs.5000 within 3 months. B has not absolutly restrained A from suing. if B fails to honor his fresh promise of Rs.5000 in addition to original amount of Rs.10000 within 3 months is a Valid contract. In case B fails to honour his commitment of paying Rs.15000/- altogether it is a valid contract and A can recover it by filing a money suut because B has not absolutely restrained A from proceeding to court of law as per section 28 of the Indian Contract Act.Hence it is not a stifling prosecution as per section 28 of Indian contract Act.