Court : Delhi
Decided on : Aug-18-1980
Reported in : 51CompCas316(Delhi); ILR1986Delhi317
..... treat such a bank guarantee, as a guarantee under section 126 of the contract act, which speaks of three persons with reference to the contract, it is rather in the nature of contract of indemnity, under section 124 of the contract act ; which requires two persons. , a contract of guarantee the surety undertakes an obligation at the request express or implied ..... 'that these bank guarantees create positive obligations.. ......... ..................and are irrevocable.. . ..... .and that the obligation arising under the bank guarantees are independent of the obligations arising out of contract between the parties........ ... '. these observations have our full agreement.(14) mr. ray even made a half hearted attempt to distinguish the cases noted above by saying that in the ..... guarantee has nothing to do with the alleged disputes between the appellant and the respondent which must be decided independently on the basis of the terms of that contract, without involving the contract of bank guarantee.(11) in the present case the guarantee given by the bank of india is in the following terms :- thestate trdg. corpn. of ..... of the principal debtor. the obligation of the surety depends substantially on the principal debtor's default ; under a contract of indemenity .....Tag this Judgment!
Court : Punjab and Haryana
Decided on : Nov-12-1980
Reported in : AIR1981P& H143
..... lal, 1964-66 pun lr 804.it has been held in oriental fire & general insurance co limited's case (supra).'it is well settled that a contract of insurance is nothing but a contract of indemnity. the policy issued is with reference to a specified vehicle owned by the policy holder and consequently the policy remains effective while the policy holder retains an .....Tag this Judgment!
Court : Gujarat
Decided on : Nov-21-1980
Reported in : (1981)22GLR846
..... been posed for my consideration had not arisen before the supreme court for its decision. under these circumstances, the observations of the supreme court on the nature of indemnity and guarantee contracts can be of no real assistance to mr. trivedi.23. mr. trivedi also invited my attention to another decision of the supreme court in s. chattanathe karyalar ..... 2scr462 , in that decision, the supreme court had an occasion to consider the nature of the contracts of indemnity and guarantee. the supreme court observed:a promise to be primarily and independently liable for another person's conduct may amount to a contract of indemnity. a contract of guarantee requires concurrence of three persons the principal debtor, the surety and the creditor.it was ..... further observed:the liability of the surety under section 128, contract act is co-extensive with that of the principal debtor, unless it is otherwise ..... provided by the contract. it is therefore necessary to consider whether in the terms of .....Tag this Judgment!
Court : Chennai
Decided on : Feb-11-1980
Reported in : (1981)1MLJ202
..... debit or in the alternative to recover the amount debited from the customer who were in default. it was held that a contract of guarantee, unlike one of indemnity, required the concurrence of three parties, namely, the principal debtor, the creditor and the surety and that the surety should undertake ..... between the principal debtor, creditor, and the surety. it was taken to be a contract only of indemnity. it was also held that in a contract of indemnity, the indemnifier could not, on performance of ..... company supplied goods to the customer who refused to take them on the ground that the company did not comply with certain terms of the contract. the account of the dubashes, namely, the plaintiffs in that case, was debited and the dubashes (plaintiffs) sued the company to cancel ..... of a promissory note or cheque, the drawee of a bill of exchange until acceptance, and the acceptor are, in the absence of a contract to the contrary, respectively liable thereon as principal debtors, and the other parties thereto are liable thereon as securities for the maker, drawer ..... the obligation at the request, express or implied, of the principal debtor. on the facts of that case, it was held that there was no contract of guarantee as there was no privity of contract .....Tag this Judgment!
Court : Supreme Court of India
Decided on : May-08-1980
Reported in : AIR1980SC1149; 1980Supp(1)SCC707; 1980(12)LC706(SC)
..... the export of which he legitimately expected a large profit, were not allowed to be exported, provided the court would give him relief against the inequitable enforcement of the indemnity clause in the contract with the stc.21. this takes us to the circumstances which were high lighted by shri diwan and countered by shri watal. the central government was somewhat neutral ..... relieve the indigenous supplier from the obligation to indemnily, having regard to the fact that the stand of the government of india was that the foreign contract was frustrated and the obligation for indemnity in the indian contract was consequently absolved and the stc was itself a state instrumentality of the central government and was subject 10 its statutory directives. more than all ..... conformity with the ad interim order, to consider whether, in equity, we should give a 'direction that if the foreign buyer damages for breach of contracts from stc should at all be permitted to enforce indemnity given by the intending exporters.'26. indeed, there is an express indication in the order that this question of equity will be decided at the time ..... , the case of the stc itself has been that the foreign contract is frustrated and, in that view, it is inequitable to keep the indemnity clause in the indian contract alive, thus holding over his head the democles sword of an uncertain litigation abroad and its chancy consequences.19. there is much .....Tag this Judgment!
Court : US Supreme Court
Decided on : May-19-1980
..... it would have had had it actually received all of the granted sections in place. [ footnote 10 ] thus, as is typical of private contract remedies, the purpose of the right to make indemnity selections was to give the state the benefit of the bargain. the history of the general statutes relating to land grants for school purposes confirms this ..... the language of the taylor grazing act. third, the court assumes -- without discussion -- that the taylor grazing act gives the secretary of the interior discretion to reject indemnity selections under standards inconsistent with the criteria set out in the statutes authorizing the selections. every federal court that has considered the secretary's authority under the taylor grazing act ..... designated sections had already "been sold or otherwise disposed of" pursuant to another act of congress, "other lands equivalent thereto . . . are hereby granted." the substitute grants, denominated "indemnity lands," were "to be selected within the state in such manner as [its] legislature may provide with the approval of the secretary of the interior." [ footnote 1 ] because much of ..... were frustrated by federal preemption or private entry prior to being surveyed. in so acting, the secretary followed the policy that, in the exercise of his discretion under 7, indemnity applications involving grossly disparate values would be refused. utah filed suit in federal district court, which, upon stipulated facts, entered summary judgment for the state. the court of .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-18-1980
Reported in : AIR1981Bom58
..... all persons so interested, the advantage so gained, but subject to repayment by such persons of their due share of the expenses property incurred, and to an indemnity by the same persons against liabilities properly contracted, in gaining such advantage.'illustration (c) to section 90 is as follows:'(c) a mortgages land to b, who enters into possession. b allows the government .....Tag this Judgment!
Court : Chennai
Decided on : Dec-30-1980
Reported in : (1982)1MLJ53
..... for workmen's compensation, an employer like the appellant cannot file an application praying for impleading the insurance company with a view to secure an indemnity.12. the second contention of the learned counsel for the appellant is that since the dependant of the deceased workman had already received the amount ..... under section 3 of i he act, the injured workman or dependants of a deceased workman can claim compensation against the employer and the question of indemnity by the insurance company to the assured does not arise under section 12(2) of the act. the principal or the contractor obliged to pay ..... . section 14 of the act deals with the insolvency of an employer and provides for a case where an employer who has entered into a contract with any insurer in respect of any liability under the act to any workman, becomes an insolvent. section 18-a of the act provides for ..... made for remedies of employer against strangers. the principal or the contractor, who had either to pay compensation or been called upon to pay an indemnity under section 12 in respect of any injury caused under circumstances creating a legal liability of some person other than the person by whom the compensation ..... employed in the execution of the work undertaken by a contractor under the principal or a sub-contractor. under section 12(2), a provision for indemnity is made. the principal who has to pay compensation to the injured workman or the dependants of a deceased workman employed by the contractor or sub .....Tag this Judgment!
Court : Mumbai
Decided on : Feb-14-1980
Reported in : 53CompCas522(Bom)
..... the bank which required reference. it is urged that the object of paying a premium of about rupees four and a half lakhs was to secure indemnity against losses and that fact should be taken into consideration while construing the word 'claim' in the excess clause. the insurance company has subsequently altered ..... cases, the insured is not entitled to keep whatever he recovers from third parties until he has received a full indemnity and the insurer is not prevented from claiming the share of the proceeds. that being so, it seemed logical that the amount recovered from wadia ..... to the insurer, until he has been fully indemnified for his loss, but in cases of partial insurance, however, the rule has no application. in contracts of marine insurance and in respect of policies which contain an average or excess clause, the assured is always deemed to be his own insurer. in such ..... language used in the policy. the meaning of a word or clause in the policy is often controlled by its content. the policy records a contract reflecting the intention of the parties and the clauses will have to be construed in such a way as to give efficacy to the transaction in ..... the defendants, new india assurance co. ltd., do general insurance business and, inter alia, issue policies of insurance to banks, including 'bankers' indemnity policies', indemnifying the banks in respect of losses suffered by them in the course of their banking business. the plaintiffs obtained a bankers .....Tag this Judgment!
Court : Delhi
Decided on : Aug-05-1980
Reported in : 53CompCas646(Delhi); ILR1981Delhi681
..... say that where the irregularity is obvious, the banker takes the documents with his eyes open and should pay, if at all, only under indemnity or recourse, for he cannot look to his principal for reimbursement if the latter refuses to accept the documents. surely, the bank cannot be dictated ..... 1980] 50 comp cas 709. these authorities re-affirm the well-known principle, that a letter of credit is independent of and unqualified by the contract of sale underlying the transaction and the autonomy of an irrevocable letter of credit is entitled to protection. as a rule the courts must refrain from ..... issuing banker from honouring a draft presented by the seller and accompanied by the required documents merely because the seller has failed to perform his contract with the buyer, for instance, by supplying goods of an inferior quality. the only exception to this rule is the case of an established ..... the shipping documents including the draft had been signed by the secretary of defendant no. 1 even though it was a proprietary concern and the contract of sale had been signed by the proprietor. so, the omission to incorporate this objection in the plaint cannot be fatal. after all, replication ..... favor of the seller beneficiary. certainly, it does not travel beyond that so as to embody wholesale the terms and conditions of the sale contract. such a conclusion would be wide off the mark, especially when the letter of credit contains detailed instructions touching various aspects for compliance by the .....Tag this Judgment!