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SWATx X   26 May 2020

maintenance and champerty

X agreed to pay Rs. 10,000 to Y to enable him to file a suit for the recovery of his property and Y promised to give him 3/4th share in the property, if recovered..

Is it valid ?


Quick Summary
This discussion examines the legality of an agreement where X paid Rs. 10,000 to Y to fund a property recovery lawsuit, with Y promising X a 75% share of the recovered property. Such arrangements are explicitly prohibited and unenforceable under the Indian Contract Act. The author questions the practical implications and the parties involved, while also expressing appreciation for the article's content and inspiration for future writing.

 2 Replies


(Guest)

Such agreements are expressely prohibited under Indian Contract Act and they are unenforceable in nature.

1 Like

P. Venu (Advocate)     26 May 2020

Why X and Y? Is there any real issue?

1 Like

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