Court : Chennai
Reported in : AIR1977Mad44; (1977)1MLJ218
..... the conduct of the vendors themselves or by the conduct of any other person. this is clearly a contract of indemnity falling under section 124 of the indian contract act. a contract of indemnity contained in an instrument which is implied by law or is ancillary to the main purpose is not ..... it has to be taken to mean a binding and enforceable contract. here, apart from the contract of sale, there is no other contract to secure the performance of which the document had been executed. though the property given as indemnity in the document in question is of a specified property, and ..... saidapet, madras has been substituted by the document in question. the document merely substitutes another property for the property that was originally given as indemnity in the sale deed. the respondents have not engaged themselves earlier to the document to perform any particular act or service. neither under ..... an assurance to substitute another property as indemnity cannot be treated as an "engagement" entered into between the vendor and the vendee. the word 'engagement' is not defined in the stamp act or in the contract act, but it must mean 'a contract' as not defined in the stamp act ..... separately chargeable with duty as an indemnity bond. it is for this reason a convenient relating to a warranty of title included in a conveyance is not chargeable separately as an indemnity .....Tag this Judgment!
Court : Chennai
Reported in : AIR1926Mad544
..... debtor whatever sum he has rightfully paid under the guarantee, but no sums which he has paid wrongfully.16. i think that the contract act draws a distinction between contracts of indemnity and contracts of suretyship, and that contracts of suretyship, unlike contracts of indemnity, require the concurrence of three persons, namely, the principal debtor, the creditor, and the surety. the surety undertakes his obligation at ..... in my opinion, that there should be three parties to it namely the surety, the principal-debtor and the creditor ; otherwise it will only be a contract of indemnity. section 145 which enacts that in every contract of guarantee there is an implied promise by the principal debtor to indemnify the surety clearly shows that the debtor and the surety are both parties ..... as to the necessity of a request, actual or constructive, of the principal debtor to the surety in order that there may be an effective contract of suretyship.19. so far as the contract of indemnity is concerned by which a person agrees to indemnify another against loss caused by the conduct of a third person and which does not require the ..... the request express or implied of the principal debtor. beading sections 126 and 145 together, it seems to me that there can be no contract of guarantee as distinguished from a contract of indemnity unless there is privity between the principal debtor and the surety as it is difficult to speak of an implied promise between persons between whom there .....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 : 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 : Chennai
Reported in : AIR1970Mad48
..... can be no liability under the contract of indemnity. on the other hand, if he has not previously recovered from such third party, but has the right to do so, there is no reason ..... in his classic on marine insurance (british shipping laws vol. 10, page 1193) states the position thus:"...,........ it is entirely foreign to the spirit of contracts of indemnity that a person damnified should recover his loss more than once; it is, therefore, clear that if he has already recovered from a third party, there ..... subrogated. it may not be that in every case of loss a third party is liable to the assured, the assured might have acquired by contract absolute indemnity against loss and the insurer might not be able to recover anything from the third party for subrogation. the assured may have really no cause of ..... all the parties are presumed to know the law, the intention is that insurers, who are parties to a policy of marine insurance, which is a contract of indemnity, should be careful to see that, if they desire to sue the board, as standing in the shoes of the assured, they are able to ..... following form. is there a suit known to law by an insurer, as in this case, who has, partially or wholly, reimbursed the assured on a contract of indemnity, or marine insurance, in respect of loss or injury to the goods, and who seeks to recover from the wrongdoer, to a proportionate extent, as one .....Tag this Judgment!
Court : Chennai
Reported in : (1988)69CTR(Mad)95; 172ITR744(Mad)
..... maximum liability of the insurers. even within that limit, however, he cannot recover more than what he establishes to be the actual amount of his loss. the contract being one of indemnity, and of indemnity only, he can recover the actual amount of his loss and no more, whatever may have been his estimate of what his loss would be likely to be ..... halsbury's laws of england, fourth edition, vol. 25, under the heading 'insurance' in paragraph 3, it is observed as follows : 'most contracts of insurance belong to the general category or contracts of indemnity in the sense that the insurer's liability is limited to the actual loss which is in fact proved. the happening of the event does not itself entitle the ..... question of nexus between the payment, made by the insurance company and the transfer does not arise in the instant case. the payment received in pursuance of a contract of indemnity cannot be considered to be payment received in pursuance of contract of indemnity cannot be considered to be payment as a result of the transfer of property. it is well-established that a ..... for the pecuniary loss with consideration for transfer of a capital asset, in our view, is not at all warranted, having regard to the peculiar nature of the principle of indemnity on which contracts of insurance are based. we are, therefore, of the considered view that the amount received by the assessee in pursuance of the .....Tag this Judgment!
Court : Chennai
Reported in : 41CompCas162(Mad); (1970)2MLJ483
..... a sensible way and not assume that the first defendant company intended to entrap its policyholders and destroy the value of the contract of indemnity by reason of the accidental contract of somebody else like the third defendant and it is our duty to construe the instrument in a rational and reasonable manner ..... these great companies intended to entrap their policy-holders and to destroy the value of the contract of indemnity by reason of the accidental contract of somebody-else, which had no connection with the subject-matter of the contract, or with the price paid for the insurance. the learned judge had to consider the ..... against the full insurable value, for any sum received by him under any other policy ; (d) where the assured receives any sum in excess of the indemnity allowed by this act, he is deemed to hold such sum in trust for the insurers, according to their right of contribution among themselves. ' 18. ..... claim payment from the insurers in such order as he may think fit, provided that he is not entitled to receive any sum in excess of the indemnity allowed by this act ; (b) where the policy under which the assured claims is a valued policy, the assured must give credit as against ..... more policies are effected by or on behalf of the assured on the same adventure and interest or any part thereof, and the sums insured exceed the indemnity allowed by this act, the assured is said to be over-insured by double insurance. (2) where the assured is over-insured by double insurance- .....Tag this Judgment!
Court : Chennai
Reported in : AIR1945Mad98
..... if it had stood alone, we are satisfied that the document read as a whole and with the covenants in the assignment deeds is clearly a contract of indemnity and must receive effect accordingly. in the result a.s. no. 95 of 1943 is allowed and the plaintiff will have a decree as ..... now raised was not argued in that case. the question next arises as to what sum the defendant is liable to pay under the covenant for indemnity. we are unable to agree with the learned district judge's conclusion on this point. the learned judge assumed that the loss to the plaintiff arose ..... of 1943 claiming the balance of the amount sued for, and the defendant has preferred app. no. 108 of 1943 contending that the covenant for indemnity does not cover losses due to the new act.4. it is obvious that the two assignment deeds and the so called receipt are parts of ..... arises i shall make good (the loss)' the defendant also executed on 5th july 1930 so called 'receipt' which was really in the nature of an indemnity bond. in this document, after reciting the settlement of account between the parties and the assignment of the promissory notes and mortgages in full satisfaction of ..... of the debts assigned to the plaintiff, the debtors being agriculturists, the indemnity ceased to be operative. there is no warrant either in principle or in precedent, for the broad proposition contended for by the learned counsel. no doubt contracts absolute in their terms have sometimes been construed as subject to implied conditions .....Tag this Judgment!
Court : Chennai
Reported in : (1914)ILR37Mad270
..... the third party, as in this case, or if the indemnifier had notice given to him of the suit against the party entitled to the indemnity, the judgment would be conclusive against the indemnifier even as an adjudication by court.3. whether the technical doctrine of res judicata is applicable or not ..... both the english and american courts that, where there is a contract to indemnify, if a decree has been passed against the person entitled to indemnity, the correctness of that decree cannot be impeached by the person bound to indemnify. the contract of indemnity might no doubt strictly be said to require that it should ..... rightly, if we may say so, that the contract is substantially broken when the court has found in a suit honestly defended by the party entitled to ..... be proved that the indemnifier acted in violation of his duty, as well as that his act caused loss to the party entitled to indemnity. but the courts have held, and we think ..... indemnity that there has been a violation of duty by the indemnifier which has entitled a third party to the damages for which the indemnity has been given. it has .....Tag this Judgment!
Court : Chennai
Reported in : AIR1936Mad528
..... test which is clearly deducible from the cases is to find out whether the covenant entered into by the vendee was a pure contract of indemnity. if it is a contract of indemnity pure and simple, the vendor will not be entitled to claim any money as the balance of the purchase money still remaining with ..... against certain claims, and not to have certain sums of money belonging to him paid to another.9. therefore in this case it is not a contract of indemnity pure and simple and vedathammal and her representatives-are entitled to demand the money in the events which have happened. it is contended by mr. bhashyam ..... damages for non-fulfilment of the contract of indemnity. the following observations in raghunatha chariar v. sadagopa chariar(1913) 36 mad 348, with reference to the case in izzabtun-nisa begam v. kunwar pertab ..... on rs. 850 retained for being received after the complete disposal of each of the court proceedings as aforesaid.8. if it is a pure contract of indemnity, no question of the return of the money will ever be contemplated, and the only right which the vendor will have is a right to ..... the vendee and as being payable to him. but if it is not a contract of pure indemnity, he may have to pay the purchase money in accordance with the directions of the vendor, and the vendor would be entitled to receive the .....Tag this Judgment!