Court : Punjab and Haryana
Decided on : Nov-20-1984
Reported in : 59CompCas808(P& H)
..... of any express stipulation to the contrary in the policy, the moment the insured parts with the car, the policy relating to it lapses. the insurance policy being a contract of personal indemnity, the insurers cannot be compelled to accept responsibility in respect of a third party who may be quite unknown to them.'12. finally, as regards the contention that in ..... even if the original policyholder continues to be shown as the registered owner of the vehicle concerned. the rationale behind this being that a policy of insurance is a contract of personal indemnity and the insurer cannot, therefore, be compelled to accept responsibility in respect of a third party, who may be quite unknown to him. mr.l.m, suri, counsel for ..... the high court of madhya pradesh in balwant singh v. jhanubai  acj 126, where it was held :' it is also well-settled law that a contract of insurance is nothing but a contract of indemnity. the policy is with reference to a specified vehicle owned by the policy holder and consequently the policy remains effective while the policyholder retains an interest in .....Tag this Judgment!
Court : Chennai
Decided on : Mar-17-1984
Reported in : (1984)42CTR(Mad)297; 152ITR541(Mad)
..... made his election, he is bound by it and cannot change his mind thereafter and when the insurer so elects to reinstate the property damaged, the contract ceases to be a contract of indemnity and becomes a contract to reinstate, as if the insurer had originally agreed to reinstate. hardly ivamy on general principles of insurance law (third edition) at page 432, sets out ..... , in the event of there being an election by the insurer to reinstate, there is a cessation of the obligation to make good the loss by money payment and the contract, though initially one of indemnity for repayment of money with reference to the particular risk covered, by the process of the exercise of election or option, becomes really a ..... and vendor received an amount from the insurance company. the purchaser claimed that as the contract for the sale of the property had been concluded, he would be entitled to the benefit of the contract of indemnity and this claim was opposed on the footing that the contract of fire insurance effected was purely a personal one and the benefit thereunder would not, therefore ..... , pass in favour of the person who had entered into a contract for the purchase of the house. under those circumstances, brett l .....Tag this Judgment!
Court : Income Tax Appellate Tribunal ITAT Mumbai
Decided on : May-16-1984
Reported in : (1984)10ITD120(Mum.)
..... a result of the loss. therefore, the assessee cannot be said to have any financial gain as a result of the indemnity contract.11.4 there are various methods of providing indemnity to the insured, viz., cash payment, repairs, replacement and reinstatement. it is the insurer who has the right to select which ..... damaged lost aircraft. this is also a pointer against 'transfer of the capital asset'.11.3 the contract of insurance is an indemnity contract to make good the loss or damage. but the law of indemnity has a built-in ceiling that the assured would not be financially better off or worse off as ..... in section 54, it would be difficult to import it on assumption and on the basis of principles governing indemnity contract.15. we may also consider the submissions based on the clause in the insurance contract that the assessee cannot abandon the damaged/lost aircraft to the insurer. now one fundamental principle in insurance, whether ..... is no question of transfer.14. we next consider whether under the terms of the insurance contract, there is any transfer or extinguishment of any right. the insurance contract we consider here is in the nature of an indemnity contract, to make good the loss or damage. the assured cannot of course be better or worse ..... off. but these principles of an indemnity contract govern the sum to be assured. it cannot have any impact on any other matter, least of all on taxing provisions. .....Tag this Judgment!
Court : Chennai
Decided on : Oct-24-1984
Reported in : AIR1985Mad213; (1985)1MLJ426
..... it cannot be disputed that the terms of the document on the basis of which the electricity board has claimed the amount from the bank constitute a contract of guarantee and not a contract of indemnity. under that document the bank has undertaken to pay any amount not exceeding rs. 50,000 to the electricity board within forty eighty hours of the ..... three communications dated 19-1-1983 specifically advising the 2nd respondent that the appellant had failed to fulfil its delivery obligations as also erection and commissioning obligations under the contract. the learned advocate-general would submit that the three communications sent by the branch office to the i st respondent would not cure the defect inherent in the first ..... such tenders or contracts.' while construing the bank guarantee, the following dictum was laid down by the supreme court :--'the principal question which arises for determination in this appeal relates to the ..... (rupees fifty thousand only) to the said maharashtra state electricity board, bombay on behalf of m/is. cochin malleables ( private) ltd., trichur, who have tendered and/or contracted or may tender or contract hereafter for supply of materials, equipment or service to the maharashtra state electricity board and have been exempted from payment of earnest money and/or security deposit against .....Tag this Judgment!
Court : Chennai
Decided on : Oct-24-1984
Reported in : 62CompCas168(Mad)
..... it cannot be disputed that th terms of the document on the basis of which the electricity /board has claimed the amount from the bank constitute a contract of guarantee and not a contract of indemnity. under that document, the bank has undertaken to pay any amount not exceeding rs. 50,000 to the electricity board within forty-eight hours of the ..... only) to the said maharashtra state electricity board, bombay, one behalf of m/s. cochin malleables (private) ltd., trichur, who have tendered and/or contraced or may tender or contract hereafter for supply of materials, equipment or services to the maharashtra state electricity board and have been exempted from payment of earnest money and/or security deposit against such tenders ..... wrote a letter to the second respondent bank invoking three bank guarantees, and demanding full payment on the ground that the appellant had failed to fulfill its obligations under the contract. in the meeting held on january 18, 1983, the first respondent had informed the appellant that transelektro expressed its inability to provide erection crane which as essential for the ..... . besides, transelektro has a corporate agreement with evt, west germany. a tripartite agreement was concluded amongst transelektro, evt, west germany, and the first respondent covering the scope of equipments under contract no. i and between the applicant and the first respondent under contra (a) initial advance of 10 per cent. on supplies ; (b) 10 per cent. of erection charges to .....Tag this Judgment!
Court : Kerala
Decided on : Jul-27-1984
Reported in : 61CompCas490(Ker)
..... favour of the transferee. for this deeming provision to come into play, the condition precedent thereto should be fulfilled. a contract of insurance, being a contract of personal indemnity, the insured cannot transfer the benefits under the policy so long as such benefits are contingent. for that reason, ..... the name of the third respondent (transferee of the vehicle), neither the second respondent nor the third respondent had the right to claim indemnity against damages arising out of the accident involving the vehicle in question. 13. for a better appreciation of the legal position taken by ..... driver who is driving themotor car on the insured's order or with his permission provided that such driver:-- (a) is not entitled to indemnity under any other policy. ' 10. a permitted one p to drive his car ; then it met with an accident resulting in the death ..... indemnity between a particular driver and the company and had nothing to do with the liability which the driver had incurred to the third party for the injuries caused to it. in paragraph 22 of the decision, at page 1741, the supreme court observed (at page 702 of 34 comp cas): ' thus the contract ..... the insurance policy in the name of one could not be transferred by him without the consent of the insurer. true, on the insured agreeing to such transfer, there would be a novation of the contract .....Tag this Judgment!
Court : Chennai
Decided on : Mar-29-1984
Reported in : (1984)2MLJ375
..... to be made by courts when bank guarantees are invoked, after referring to sections 126, 128, 133, 140 and 145 of the indian contract act, 1872, dealing with indemnity and guarantee, he refers to united commercial bank v. bank of india, : 3scr300 , wherein it was held that it is ..... guarantees being invoked, and that inter se disputes between contracting parties cannot be taken into account by the bank. 8. the contention of mr. s. gopalaratnam, learned counsel, is that, the decisions ..... unwarranted. in paragraph 41 it is stated (p. 206 of 52 comp cas) : 'a letter of credit sometimes resembles and is analogous to contract of guarantee ... to warrant interference by an injunction.' counsel for the defendants also relies upon the same decision to plead that courts cannot intercept bank ..... between the seller and the buyer, and that only in extraordinary circumstances, an injunction could issue. with fraudulent intention if a party to the contracted invokes a bank guarantee, no court could allow an illegality being committed, merely because the relief claimed is in respect of a bank guarantee ..... a well-established rule that a bank issuing or confirming a letter of credit, is not concerned with underlying contract between the buyer and the seller. .....Tag this Judgment!
Court : Chennai
Decided on : Mar-29-1984
Reported in : AIR1986Mad161; 59CompCas399(Mad)
..... .6. as to what should be the approach made by courts when bank guarantees are invoked, after referring to ss. 126, 128, 133, 140 and 145 of the indian contract act, dealing with indemnity and guarantee, he refers to united commercial bank v. bank of india, : 3scr300 , wherein it was held that it is a well established rule that a bank ..... disputes between contracting parties cannot be taken into account by the bank.7. the contention of mr. s. gopalaratnam, learned counsel, is that, the decisions of the supreme court in tarapore and co ..... of convenience is taken into account, an interim injunction would be wholly unwarranted. in para 41 it is stated.'a letter of credit sometimes resembles and is analogous to a contract of guarantee ........ to warrant interference by injunction.'counsel for defendants also relies upon the same decision to plead that courts cannot intercept bank guarantees being invoked, and that inter se ..... issuing or confirming a letter of credit, is rot concerned with the underlying contract between the buyer and the seller. after referring to the decision in harbottle ltd. v. national westminster .....Tag this Judgment!
Court : Karnataka
Decided on : Jun-27-1984
Reported in : ILR1985KAR393
..... execution proceeding, and a contention is raised by the judgment-debtor on a subsequent execution being started by the decree-holder that the compromise has given rise to a fresh contract between the parties and that the decree sought to be executed is not executable, what is to be seen is whether the decree has been extinguished as a result of ..... the compromise and a fresh contract has emerged. when a compromise takes place in the course of execution of adecree-for eviction, the compromise may extinguish the decree and create a fresh lease, or the compromise .....Tag this Judgment!
Court : Kolkata
Decided on : Aug-21-1984
Reported in : (1985)46CTR(Cal)340,155ITR377(Cal)
..... -partners. a salaried partner too is often given such an indemnity either expressly or impliedly by provisions which make the partners entitled to the residual profits exclusively liable for losses.'13. learned advocate for the assessee contended that ..... the others against losses ; and the very fact that these latter become, or agree to become, partners is quite sufficient consideration to give validity to a contract that they shall be indemnified. such agreements appear, moreover, to be reasonable, where the partners indemnified leave the whole management of the concern to their co ..... persons who have agreed to share the profits of a business carried on by all or any of them acting for all.' section 13 : 'subject to contract between the partners ... (b) the partners are entitled to share equally in the profits earned, and shall contribute equally to the losses sustained by the firm ..... division bench of the allahabad high court is cited for the following observations made in the context of section 239 of the indian contract act defining a partnership (p. 540): 'an agreement to share the loss is not a necessary ingredient of a partnership under the indian ..... contract act.' (c) b.c.g.a. (punjab) ltd. v. cit . this decision of a full bench of the lahore high court .....Tag this Judgment!