Court : Allahabad
Decided on : Dec-17-1991
Reported in : AIR1992All239
..... procedure prescribed by the legislature, to recover public monies will be rendered redundant if proceedings against the guarantors, sureties and those bound by a contract of indemnity were saved after watching the result of an action brought under s. 30 of the act. the very purpose of s. 30, in ..... of an agreement by which the loan was disbursed, continue to be governed by the indian contract act, 1872. if, on a loan agreement there be those who enter into a 'contract of indemnity' or a 'contract of guarantee', sureties not excluded, chapter v11i of this act determines the essential and proper ..... individual capacity of messrs p. k. tiwari and v. k. tiwari for the due repayment of the loan, and other matters mentioned in the contract agreement. this clause refers to those who stood to give faith for the disbursement of the loans, as guarantors. this clause reads:'3. 3 ..... company or their directors or the guarantors or sureties on whose confidence the loan was given. there are guarantors who bound themselves by a contract to facilitate the disbursement of the loans. none have come forward to honour their guarantee.5. this petition is also a halfhearted exercise to ..... parties to the contract, independent of the provisions of the industrial finance corporation of india act, 1948. not to include all the parties to the contract in an actionable .....Tag this Judgment!
Court : Mumbai
Decided on : Oct-11-1991
Reported in : 1992(2)BomCR125; (1992)94BOMLR620; 80CompCas740(Bom); 1992(2)MhLj1110
..... express or implied, of the principal debtor. the obligation of the surety depends substantially on the principal debtor's default; under a contract of indemnity liability arises from loss caused to the promisee by the conduct of the promisor himself or by the conduct of another person.' the calcutta ..... called the 'creditor'. a guarantee may be either oral or written.' 7. a contract of indemnity is defined in section 124 of the contract act and that reads as follows :'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 any other person, is called a 'contract of indemnity'. 8. the supreme court held in punjab national bank ltd. v. shri vikram cotton mills ltd. : 2scr462 as follows (at page ..... where the facts were as follows : the respondent entered into an agreement with the appellant for constructing a vanaspati manufacturing plant for the latter. the contract required the respondent to furnish two bank guarantees for proper construction and successful commissioning of the plant. accordingly, the bank of india executed two bank ..... 932 of 40 comp cas) : 'a contract of guarantee requires concurrence of three persons - the principal debtor, the surety and the creditor - the surety undertaking .....Tag this Judgment!
Court : Gujarat
Decided on : Aug-20-1991
Reported in : (1992)2GLR1258
..... the risk on their lives would be covered thereafter. the deponent of the said affidavit has further pointed out that life insurance contract is not a contract of indemnity and in order that there shall be insurable interest for the purpose of covering the risk of death, the date of vesting of ..... counsel further submitted that the terms of contract which have been entered into between the corporation and the petitioner are not vitiated on any of the grounds like coercion, undue influence, fraud misrepresentation ..... terms of the policy cannot be said to be unreasonable or unconscionable and having understood the terms of the policy the petitioner had entered into contract with the respondent no. 1-corporation and therefore, the petitioner is not entitled to any of the reliefs prayed for in the petition. learned ..... minor in fact the minor would not be entitled to the benefit of policy till the deferred date and therefore, the terms of the contract being unreasonable and unconscionable, it must be set aside and the life insurance corporation should be directed to extend the benefit immediately to minor ..... the first respondent in its commercial function. it has been pointed out in the said reply that as minor children cannot enter into any contract, the plans of assurance under tables 80 and 81 have been specifically and specially formulated with a view to enabling children to secure life .....Tag this Judgment!
Court : Supreme Court of India
Decided on : Aug-14-1991
Reported in : AIR1991SC2104; (1991)3CompLJ124(SC); (1991)98CTR(SC)153; 191ITR647(SC); JT1991(3)SC394; 1991(2)SCALE327; (1991)4SCC22; 3SCR577
..... any right in it in favour of the insurance company. it is by virtue of the contract of insurance or of indemnity, and in terms of the conditions of the contract. under an insurance contract, the assured cannot claim more amount than the sum insured. the sum insured is the maximum liability of the ..... to the property, the insurance company takes over such property or whatever is left of it, does not change the nature of the insurance claim which is indemnity or compensation for the loss. the payment of insurance claim is not in consideration of the property taken over by the insurance company, for one is ..... property, there is no transfer of it in favour of a third party. the money received under the insurance policy in such cases is by way of indemnity or compensation for the damage, loss or destruction of the property. it is not in consideration of the transfer of the property or the transfer of ..... insured the machinery hired from the assessee, since it was liable to make good the loss of the machinery to the assessee. this is implied under a contract of bailment unless it is provided to the contrary. m/s. jasmine mills further admittedly paid the insurance amount pro rata to the assessee. in the ..... from m/s. jasmine mills was paid to it in satisfaction or in working out of its right, if any, to recover damages under law or contract for the loss or damage caused to the machinery. we do not see any difficulty in holding that it was an amount received by the assessee as .....Tag this Judgment!
Court : Madhya Pradesh
Decided on : Apr-26-1991
Reported in : (1994)IIILLJ643MP; 1991(0)MPLJ914
..... position that no kind of agreement was at any time made, whether of insurance or indemnity, whether the insurance act or contract act, between the corporation and the employees/respondents.16. it is true that section 72, contract act recognises the principle that any person to whom money has been paid or anything ..... toiling and teeming millions of the country. as regards shri dubey's reliance on george 'joseph fernandes case (supra), that is on section 20, contract act about 'mistake' of parties in respect of an agreement between them. although to paras 22 and 23 of the report, shrf dubey has drawn ..... payment merely of 'contribution' contemplated under chapter iv of the act, neither the employer nor the employee can contend that a separate and independent contract of insurance between the corporation on one side and on the other side employer and/or employee was created and that was either void or ..... mittal on jainendra kumar 1985 jlj 533, which was a case on hindu law, in an appeal arising out of a suit for specific performance of contract, i deem misconceived. true, by referring to section 114(e), evidence act, the court stated therein the settled law that party suppressing any crucial ..... case of neither employer was covered by the said regulation. on behalf of respondent/employers, shri dubey endeavoured to sustain the impugned order, invoking section 70 contract act. he also cited i.t.c. ltd. v. george joseph fernandes : air 1989 sc 839. the thrust of the argument of shri mittal .....Tag this Judgment!
Court : Mumbai
Decided on : Apr-24-1991
Reported in : 1991(3)BomCR735; (1991)93BOMLR282
..... of guarantee there must be a third contract, by which the principal debtor expressly or impliedly requests the surety to act as surety. ..... namely, (i) the illustration (c) to section 127 and (ii) that in kali charan v. abdul rahman and ors. (supra) the contract of guarantee came to be made in pursuance of a previous arrangement. none of these considerations would be sufficient to overlook the plain and natural meaning of ..... had materialised earlier even resulting the delivery of goods, but price remaining unpaid, would be regarded as not forming the consideration for the subsequent contract of guarantee. now the purpose of illustrations as is pointed out in aniruddha mitra v. the administrator general of bengal and ors. is to ..... contract between the surety and the creditor by which the surety guarantees the debt, and no doubt the consideration for that contract may move either from the creditor or from the principal debtor or both. but if those are the only contracts, the case is one of indemnity. in order to constitute a contract ..... unless that element is present, it is impossible to work out the rights and liabilities of the surety under the contract act .....Tag this Judgment!
Court : Orissa
Decided on : Mar-06-1991
Reported in : 1993ACJ444; AIR1992Ori268; (1993)IILLJ523Ori
..... is given subsequent to the actual date of transfer it operates retrospectively. the submissions though prima facie attractive do not stand close scrutiny.5. a policy of insurance is a contract of indemnity. insurance is available to the owner of the vehicle and is not related to the vehicle itself. when the insured ceases to be the owner of the vehicle, the ..... contract becomes inoperative. a policy of insurance cannot be transferred by the insured without the consent of the insurer. that is the underlying principle of section 103-a. there is a ..... novation of the contract once the insurer agrees to transfer and the original assured is substituted by the new assured, transferee to whom the policy has been transferred. by operation of a deeming provision .....Tag this Judgment!
Court : Orissa
Decided on : Mar-06-1991
Reported in : II(1994)ACC102
..... is given subsequent to the actual date of transfer it operates retrospectively. the submissions though prima facie attractive do not stand close scrutiny.5. a policy of insurance is a contract of indemnity. insurance is available to the owner of the vehicle and is not related to the vehicle itself. when the insured ceases to be the owner of the vehicle, the ..... contract becomes inoperative. a policy of insurance cannot be transferred by the insured without the consent of the insurer. that is the underlying principle of section 103-a. there is a ..... novation of the contract once the insurer agrees to transfer and the original assured is substituted by die new assured, transferee to whom the policy has been transferred. by operation of a deeming provision .....Tag this Judgment!
Court : Chennai
Decided on : Feb-26-1991
Reported in : II(1992)ACC541; 1992ACJ354
..... also put forward the plea that the policy issued by it in favour of the sixth respondent covering the vehicle in question was a personal contract of indemnity, which lapsed upon the transfer of the lorry by the sixth respondent to the seventh respondent and the seventh respondent alone would be liable to ..... of this court, in queensland insurance co. ltd. v. rajalakshmi ammal 1970 acj 104 , took the view that an insurance policy is a contract of personal indemnity and the insurer cannot be compelled to accept responsibility in respect of a third party quite unknown to it and as the insurance company had not ..... is liable for an accident to a third party, came to be considered and it was observed as follows:.a contract of insurance in relation to a vehicle is one of personal indemnity confined to the owner and the liability of the insurance company is determined by the terms and conditions of the ..... any provision in the policy for transfer. on a transfer of the vehicle, there is no substitution of the transferee as the beneficiary of the personal indemnity. under the provisions of the motor vehicles act also, there is no statutory novation, as it were, in cases of transfer of a vehicle. when ..... the insurance company on one or more of the grounds set out in section 96(2) of the act, when, according to it, there is no contract of insurance at all. considering the consistent and preponderant judicial opinion expressed in the decisions of this court referred to earlier, the decision in dharman v. .....Tag this Judgment!
Court : Gujarat
Decided on : Jan-23-1991
Reported in : (1994)1GLR655
..... and also security for the performance of that guarantee and it is a perfectly legitimate and legal way of conducting such commercial transactions. in fact chapter viii of the contract act deals with indemnity and guarantee and provides for this kind of tripartite arrangement.10. as regards consideration, it is true that no direct consideration flowed from the plaintiff to the defendant ..... such tripartite arrangement, anything done for the benefit of the principal debtor is a sufficient consideration to the surety for giving guarantee as expressly provided in section 127 of the contract act. thus, even though there is no consideration to the third party-surety for mortgage, the consideration of having done anything for the benefit of the principal debtor is a ..... therefore, in an agreement to execute mortgage, if there is any promise by the creditor to advance monies on creation of such mortgage, there cannot be specific performance of the contract to lend money. but when the lender has advanced the money and the debtor has agreed to create a mortgage, that agreement is specifically enforceable. this proposition has been laid ..... incomplete statement and incomplete quotation. that paragraph from mulla further reads as under:(e) in south african territories ltd. v. wallngton (f) lord macnaghten said that specific performance of a contract to lend money cannot be enforced is so well established, 'and obviously so wholesome a rule, that it would be idle to say a word about it' the remedy for .....Tag this Judgment!