Cpt accounts-consignment revision sheet and imp mc qs
Cpt law - champerty and maintenance - revision sheet
1. [CHAMPERTY AND MAINTENANCE] December 4, 2010
What do you mean by Champerty and Maintenance?
Champerty: When a person helps another in litigation in exchange of a promise to hand over a
portion of the fruits of the litigation, if any, it is called Champerty.
For example,
If ‘A’ an advocate helps in litigation for ‘B’ a plaintiff ( a person who files a case in civil court ).
Here, ‘B’ has agreed to pay certain amount to ‘A’ if decision will be in favour of him.
Maintenance: When a person agrees to help another by money or otherwise in litigation in which he
is not himself interested, it is called Maintenance.
For example,
‘A’ and ‘B’ both are husband and wife decided to take a divorce by mutual consent. ‘A’ has agreed
to give maintenance of Rs.5000 to ‘B’.
Note : In English Law Both champerty and maintenance are void. But In India both
agreements are valid but if they are opposed to public policy then void.
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