Professional Documents
Culture Documents
Facts:
n One Mr. Keshavdas was the materials supplier for all the
construction going on the plot of land.
+ CASES ON INDEMNITY
n On July 30, 1939, Plaintiff (on the request of the Defendant),
wrote to the Municipal Corporation of Bombay asking them to
transfer the lease of the said plot to the Defendant. This change
is approved by the MCB, but no formal lease is drawn up.
n Defendant argues that there is no cause of action yet and the
suit is premature. He insists that unless and until the
indemnity-holder (Plaintiff) has suffered a loss, he is not
entitled to sue the indemnifier (Defendant). The argument is
simply that under Section 124, the promisor promises to save
the promisee from the loss caused to him and not the loss
which may be caused to him. The argument is expanded
further by saying that until Mr. Keshavdas files a suit against
the Plaintiff and obtains a judgment which the Plaintiff is
compelled to satisfy, the Plaintiff is not entitled to sue the
Defendant.
+ CASES ON INDEMNITY
Issue:
Decision:
Rationale:
n Sections 124 and 125 of ICA are not exhaustive of the whole
law of indemnity. And equitable principles applicable in the
Courts of England will apply in this case.
+ CASES ON INDEMNITY
Facts:
n In 1957 / 1958, the Plaintiffs had sold and delivered to the
Defendants, certain goods and price of it was recovered.
n Plaintiff called the Defendant to pay up. Defendant did not pay.
n Plaintiff appealed the decision of the authorities and exhausted all
appeals by July, 1963.
n Before filing these appeals, sometime between April and July of
1963, the Plaintiff deposited all the amount demanded by the
authorities.
n The suit is barred by the Limitation Act. (Article 113 of the Schedule
to the Limitation Act provides that a suit for which no period of
limitation is provided, the limitation period will be 3 years from the
time when the right to sue accrues.)
+ CASES ON INDEMNITY
n The Defendant argues that “the right to sue accrued” to the
Plaintiff on February 28, 1963 (when for the first time the
authorities directed the Plaintiff to pay up the sales tax.)
n The Plaintiff argues that “the right to sue accrued” to the
Plaintiff in April, 1963 (when payment to authorities was
actually made).
Issue:
Decision:
Rationale:
n Relying on the above, the Court held that there was a
continuing breach by the Defendant starting from the point
when the Plaintiff first requested the Defendant to pay, up
until, when the actual loss occurred to the Plaintiff.
+ CASES ON INDEMNITY
Facts:
n Thereafter, on February 09, 1920, a sale deed for half of this
land was executed by the Plaintiff in favour of Mr. Shanti
Saran for Rs. 16,000.
n Out of Rs. 16000, Rs. 13,500 was left with the purchasers for
paying up the debt to Bansidhar and Khub Chand.
+ CASES ON INDEMNITY
n The mortgagees brought suit against the Plaintiff and after
going through multiple court battles, the Collector ordered a
self-liquidation of mortgage for 3/4th of half of the land held
by the Plaintiff.
n As a result, the Plaintiff had to part with a huge part of his
property. Accordingly, the Plaintiff filed this suit for the
recovery of loss that he suffered for the failure of the
Defendant to pay up.
Decision:
Rationale:
Thank you!