Question

A person who, without having any interest in the subject matter of a civil proceeding, provides pecuniary assistance or support to a party under an agreement that he shall receive a share in the proceeds of the litigation, is guilty of?

• A. Maintenance
• B. Barratry
• C. Champerty
• D. Malicious prosecution

Hint:

Mnemonic: Champerty = CH-amp-erty (think of it as CH-anging the prop-erty or sharing the CH-ash/Cash). If there is a "share" involved, it is always Champerty.

Answer 1

The Correct Option is C

Concept: Common Law identifies certain acts that interfere with the administration of justice by encouraging unnecessary litigation. Two such concepts are Maintenance and Champerty.

• Maintenance: Assisting a party in litigation without having a legal interest in the case.

• Champerty: An aggravated form of maintenance where the assistant bargains for a share of the "spoils" or proceeds.

Step 1: Distinguishing between the two common law wrongs.
In

Maintenance, a person helps a litigant out of charity or religious motive. In

Champerty, the motive is purely commercial and profit-oriented. The key phrase in the question is "receive a share in the proceeds." This profit-sharing agreement is what elevates the act from simple maintenance to champerty.

Step 2: Legal Status in India.
In India, Champerty and Maintenance are not "crimes" as they were in England. However, such agreements can be declared

void if they are against public policy. Under the Indian Contract Act, if an agreement to share litigation proceeds is found to be extortionate or unconscionable, the courts will refuse to enforce it.