X agrees to pay Y a sum of money on the understanding that Y will not file (and will not pursue) a criminal complaint against X for an offence. Under the Indian Contract Act, 1872, the agreement is:

An agreement to withhold or stultify a criminal prosecution of a public nature, or to receive money to refrain from prosecuting an offender for a non-compoundable offence, is one whose object is opposed to PUBLIC POLICY and is VOID under Section 23 of the Indian Contract Act. Compounding or stifling a prosecution for a non-compoundable offence is unlawful, because the criminal process belongs to the State and public justice. Only offences that are lawfully compoundable may be validly settled. Such agreements are accordingly void, and money paid under them is not recoverable. The public-policy bar is total.