| [Madhya Pradesh Act No. 15 of 1938]1 | [22nd July, 1938] |
(Published in the Central Provinces and Berar Gazettee dated the 22nd July, 1938)
An Act to amend the Indian Contract Act, 1972, in its application to the (Madhya Pradesh).
Whereas it is expedient to provide for the setting aside of champertous agreements and to amend the Indian Contract Act, 1872 (IX of 1872) for that purpose;
It hereby enacted as follows:-
1. For Statement of Objects and Reasons, see Central Provinces and Berar Gazette, dated the 3rd December 1937, Part II, page 1986. For Report of the Select Committee, see Central Provinces and Berar Gazette, dated the 28th January, 1938, Part II. page 59. For Proceedings in Assembly, see Central Provinces and Berar Legislative Assembly Proceedings, 1937, Volume II, pages 101 to 109 and ibid, 1936, Volume III, page 781.
1. Short title.- This Act may be cited as the [Madhya Pradesh]2 Indian Contract (Amendment) Act, 1938.
2. Subs. by M.P. Act 23 of 1958, S. 3(4) for "Central Provinces and Berar".
2. Insertion of sections 19-B and 19-C/in Act IX of-1872.- After section 19-A of the Indian Contract Act, 1872 (IX of 1872), the to following section shall be deemed to be inserted, namely:-
"19-B. Definitions of maintained 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 recognised 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 erms and conditions as the court may deem fit to impose.".