The M.P. Indian Contract (Amendment) Act, 1938
No. 15 of 1938
Object & Reasons6
|Statement of Objects and Reasons. - In India the specific rules of English law in respect of champertous agreements have not been adopted and the only provision for holding some of them illegal is Section 23 of the Indian Contract Act, 1872 (IX of 1872). The Civil Justice Committee were of the opinion that the Law should be so amended as to check the evils which arise from champertous litigation. The amendments proposed will implement the recommendation of the Committee.|
"19-B. Definition of maintainer and champertous agreement. - (a) 'Maintainer' means a person who gives assistance or encouragement to one of the parties to a suit or proceeding and who has neither an interest in such suit or proceeding nor any other motive recognized by law as justifying his interference.
(b) 'Champertous agreement' means an agreement whereby the nominal plaintiff agrees with the maintainer to share with or give to him a part of whatever is gained as the result of the suit maintained.
"19-C. Power to set aside champertous agreement. - A champertous agreement may be set aside upon such terms and conditions as the Court may deem fit to impose."