Pankaj sells to Puneet an immoveable property by furnishing the document of title for a consideration of Rs 5 lakh. Later, the documents of title are discovered by Puneet to be forged. Puneet institutes criminal proceeding against Pankaj for forgery & cheating. Some time later a settlement is arrived and an agreement entered into between Pankaj & Puneet whereby upon Pankaj paying Rs 20 Lakh to Puneet, Puneet agrees to withdraw the criminal complaint. This later agreement is
Verified Answer
A. Enforceable at the option of either party subject to each party if willing to perforin This respective part of contract
B. Is Voidable at option of Puneet
C. Is enforceable with permission of court
D. Void in terms of Section 23 of Indian Contract Act
Explanation:
An agreement to stifle prosecution (i.e., to withdraw a criminal complaint in exchange for consideration) is considered to be against public policy and is therefore void under Section 23 of the Indian Contract Act, 1872.