Court : Karnataka
Reported in : AIR1987Kant139; ILR1986KAR3313
..... and the purchaser in order to see that the seller gets his money without much difficulty. 17. section 124 of the contract act defines the contract of indemnity as: -'a contract by which one party promises to save the other from loss caused to him by the conduct of the promissory himself, ..... therefore a reference to the said various paragraphs would clearly bring out that there is a. marked distinction between letters of credit, contracts of guarantee and contracts of indemnity. the said supreme court case involved only a letter of credit. therefore the reliance placed by the learned counsel shri sundara swamy on ..... dependent on a third person's default. a promise to be primarily and independently liable is not a guarantee, though it may be an indemnity. in a contract of guarantee there have to be three parties; (1) a principal debtor whose liability may be actual or prospective, (2) a creditor ..... or by the conduct of any other person, is called a contract of indemnity- 'section 125 of the contract act reads as: - the promise in a contract of indemnity, acting within the scope of his authority, is entitled to) recover from the promissory- (1) all ..... said rulings referred to by both the advocates, it is necessary to find out the meaning of the words(i) letter of credit;(ii) contract of guarantee; and(iii) contract of indemnity.16. the learned author h.p. sheldon his practice and law of- banking, 8th edition (revised) has stated as: i 'letter .....Tag this Judgment!
Court : Mumbai
Reported in : AIR1956Bom106; (1955)57BOMLR1122
..... opinion, with respect, coyajee j., was right in coming to the conclusion that the notice of motion based on the appellant's right under the contract of indemnity was premature. it is somewhat unfortunate that the present insolvency proceedings will have to continue though it is common ground that besides the res-pondent ..... with respect, we agree with the view thus expressed by chagla j. in our opinion, in dealing with the rights and obligations flowing from a contract of indemnity, the court must always ask itself whether the indemnified party has incurred a liability, and if it shown that liability has been incurred and is ..... the existence of a clear enforceable claim against him and is able to show that it is in respect of such a clear enforceable claim that a contract of indemnity has been executed. in this connection, we may refer to the decision of mr. justice chagla, as he then was, in -- 'gajanan moreshwar ..... not as specific and unambiguous as clause 5. but we have no hesitation in holding that, like clause 5, clause 7 also constitutes a contract of indemnity. i have already stated that in regard to a registered firm income-tax has to be paid, not by the registered firm as such, ..... arrears of land revenue. 4. the first point which we have to consider is whether the material clauses in the deed of dissolution constitute a contract of indemnity as alleged by the appellant or not. the appellant relies on two clauses in the deed of dissolution. clause 5 provides that the continuing .....Tag this Judgment!
Court : Andhra Pradesh
Reported in : 55CompCas677(AP)
..... to save the other from loss caused to him by the conduct of the promisor himself, or by the conduct of any other person, is called a 'contract of indemnity'. 126. a 'contract of guarantee' is a contract to perform the promise, or discharge the liability, of a third person in case of his default. the person who gives the guarantee is called the ..... the appellant. in the view we have taken, we have no hesitation to reject the contention of the learned counsel for the appellant. to sum up : (1) a contract of guarantee, unlike a contract of indemnity which is bilateral, is tripartite where three persons, viz., the principal debtor, the creditor and the surety, are involved. but, it is not necessary or sine qua ..... primarily and essentially it is substance that has to be looked into and not the form in order to determine in such cases as to whether it is a contract of guarantee or indemnity. in suresh narain sinha v. akhauri balbhadra prasad, : air1957pat256 , a division bench held that it is not necessary that the principal debtor should as a matter of law ..... called the 'creditor'. the last sentence in this section, viz., 'a guarantee may be either oral or written' has special significance. this contract is, therefore, trilateral unlike the contract of indemnity which, as stated earlier, is bilateral. where, the contract is one of indemnity, the non-liability of the principal debtor does not affect the obligation undertaken by the indemnifier which is primary, whereas every .....Tag this Judgment!
Court : Chennai
Reported in : (1918)35MLJ692
..... apply it towards the discharge of the debts. in such cases, the suit will be upon the covenant and not upon an implied or express contract of indemnity. in the ptesent case, i feel no doubt that the suit is brought upon the covenant. the two clauses in ex. a to which mr ..... under consideration in that case, there was an implied contract of indemnity, and if the purchaser expressly covenanted with the vendor to pay the encumbrances, such a covenant as that without more, having regard to the nature ..... . ananthakrishna aiyar and it is this : ' if the purchaser covenants with the vendor to pay the encumbrances, it is still nothing more than a contract of indemnity'. but reading that sentence in the light of the rest of the judgment, it means nothing more than this, that in a transaction of the nature ..... , he should be liable to pay the plaintiff for any damage the latter might sustain. it was held that the agreement was not a mere contract of indemnity. there the learned judges point out in support of their view, that this provision could not detract from the absolute promise to pay contained in ..... any amount, yourself and your properties would be liable for all such losses and amounts etc.' it is contended that these clauses amount merely to a contract of indemnity, and therefore the respondents, the vendors of the property were not entitled to bring this suit, until any loss has been caused to them by .....Tag this Judgment!
Court : Mumbai
Reported in : (2007)109BOMLR483
..... any other person, is called a 'contract of indemnity.125. rights of indemnity holder when sued - the promisee in a contract of indemnity, acting within the scope of his authority is entitled to recover from the promisor-(1) all damages which he may be compelled to pay ..... proceeds on a misconception of the rights of the indemnifier. it is therefore necessary to consider the same.113. sections 124 and 125 of the indian contract act read as under:124. 'contract of indemnity defined' - a contract by which one party promises to save the other from loss caused to him by the conduct of the promisor himself, or by the conduct of ..... essence of the matter is that subrogation springs not from payment only but from actual payment conjointly with the fact that it is made pursuant to the basic and original contract of indemnity.123. admittedly in the present case, original plaintiff no. 1 did not make payment of the amounts debited by the chemical bank in respect of the defendants account. admittedly ..... .84. banks, like any other party, have their own difficulties against which they would understandably desire to safeguard themselves. they are entitled to do so. article 12 constitutes a contract of indemnity. there is nothing either in principle or in law which disentitles them from obtaining an indemnify inter-alia against the acts of the negotiating bank in consideration of their opening .....Tag this Judgment!
Court : Allahabad
Reported in : AIR1938All297
..... vendee to pay off a mortgage debt, as i consider the present sale deed implies, is or is there not an implied contract of indemnity, and if there is a contract of indemnity does the case therefore come for the purpose of limitation under article 83, limitation act, when the plaintiff is actually damnified by ..... 1909) 31 all. 583 at page 589;if the purchaser covenants with the vendor to pay the encumbrances, it is still nothing more than a contract of indemnity.18. in the present case as stated above, the vendee had covenanted with the vendor to pay the encumbrance on the property to the extent ..... i am of the opinion that under article 83 the plaintiffs, have three years from the time when they were damnified, and as such a contract of indemnity was contained in a sale deed in writing registered, the time is extended to six years.16. i have no doubt that several causes of ..... of the money that was left with him. the present contract therefore is one of indemnity and the appellants are liable to indemnify the vendor against the loss sustained by the vendor by their default. the cause of action ..... the appellants that there was no express clause of indemnity in the contract, so the contract could not be regarded as one of indemnity. in order to make a contract of indemnity, it is not necessary that there should always be an express clause of indemnity. a contract of indemnity may be express or implied. as observed by their .....Tag this Judgment!
Court : Andhra Pradesh
Reported in : AIR1981AP153
..... to save the other from loss caused to him by the conduct of the promisor himself, or by the conduct of any other person, is called a 'contract of indemnity.' 126. a 'contract of guarantee' is a contract to perform the promise, or discharge the liability, of a third person in case of his default. the person who gives the guarantee is called the ..... appellant. in the view we have taken, we have no hesitation to reject the contention of the learned counsel for the appellant.26. to sum up :--(1) a contracts of guarantee, unlike a contract of indemnity which is bilateral, is tripartite where three persons, viz., the principal debtor, the creditor and the surety, are involved but, it is not necessary or sine qua ..... and essentially it is the substance that has to be looked into and not the form in order to determine in such cases as to whether it is a contract of guarantee or indemnity.in suresh narain v. akhauri, : air1957pat256 , a division bench held that it is not necessary that the principal debtor should as a matter of law, be an express ..... , the promisor and the promisee. the promisor promises to make good the loss though caused by a third party. this gives rise to the contract of indemnity, whereas section 126 of the contract act gives rise to a contract of guarantee wherein three persons are involved. under this section, a party who promises to discharge the liability of a third person in case of .....Tag this Judgment!
Court : Chennai
Reported in : AIR1944Mad457
..... who was not a party thereto. it is settled law that a judgment obtained after bona fide contest against the party indemnified in respect of the matter to which a contract of indemnity applies is conclusive against the indemnifier although the latter was no party to it, not because such judgment binds him as res judicata, but because the claim against which ..... refer to many of them as we think that the position as regards the rights of a promisee in a contract of indemnity is fairly well settled. it is, of course, material in such cases to consider the terms of the particular contract but, subject to such variations as might arise from any special terms the position generally speaking seems to be this ..... : the promisee is entitled not only to recover from the indemnifier what he has been required to pay to the creditor to whose demand or claim the indemnity relates, but he is also entitled ..... section 125(1), contract act, is based. it was, however, urged that a compromise stood on a different footing, and that, unless notice had been given to the indemnifier calling upon him to satisfy or contest the claim and he failed or refused to do so, he was not precluded from showing, in a suit to enforce the indemnity, that the claim .....Tag this Judgment!
Court : Madhya Pradesh
Reported in : (2010)ILLJ257MP; 2009(4)MPHT425
..... himself, or by the conduct of any other person, is called a 'contract of indemnity'.125. rights of indemnity-holder when sued.- the promisee in a contract of indemnity, acting within the scope of his authority, is entitled to recover from the promisor:(1) all damages which he may ..... contrary to the orders of the promisor, and was one which it would have been prudent for the promisee to make in the absence of any contract of indemnity, or if the promisor authorized him to compromise the suit.9. perusal of the aforesaid goes to show that the liability of the indemnifier to ..... he did not contravene the orders of the promisor, and acted as it would have been prudent for him to act in the absence of any contract of indemnity, or if the promisor authorized him to bring or defend the suit;(3) all sums which he may have paid under the terms of any ..... on account of the accident resulting from the use of his motor vehicle. sections 124 and 125 of the indian contract act, 1872 may be reproduced hereinbelow for convenience:124. 'contract of indemnity' defined.- a contract by which one party promises to save the other from loss caused to him by the conduct of the promisor ..... and ors. v. narendra kaur and ors. 2009 (2) jlj 161 (sc), the apex court has further clearly observed:a contract of insurance as is well known is a contract of indemnity. in a case of accident, the primary liability under law for payment of compensation is that of the driver. the owner of .....Tag this Judgment!
Court : Gujarat
Reported in : (2009)2GLR1348
..... driver and on that basis on the principle of vicarious liability, against the owners of such motor vehicles and the insurance companies which would step in on the basis of contract of indemnity and also on account of the statutory liability as laid down by the motor vehicles act. it is not as if that claims for compensation would lie even in ..... owner of the motor vehicle have first to be held to be responsible on the basis of tortious liability for the accident and then only insurer would come in via contract of indemnity or an account of its statutory obligation under section 95 read with section 96 of the act. consequently, even though the later part of section 110-b prior to .....Tag this Judgment!