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INDEMNITY

Gajanan Moreshwar v. Moreshwar Madan, A.I.R. 1942 Bom, 302

ISSUE:

Whether the suit for indemnity was premature as the plaintiff had not yet incurred any loss per se?

RULE:

If the indemnity-holder is to wait till a judgment is pronounced, and it was only after he had satisfied the judgment that he could sue on his indemnity, it is clear that this might under certain circumstances, throw an intolerable burden upon the indemnity-holder. Accordingly, if the liability of the indemnity-holder has become absolute, then he is entitled either to get the indemnifier to pay off the claim or to pay into Court sufficient money which would constitute a fund for paying off the claim whenever it was made.

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Categories
INDEMNITY

Shanti Swarup v. Munshi Singh, AIR 1967 SC 1315

ISSUE:

Whether there exists a contract of indemnity between the plaintiff and the defendant?

RULE:

When a conveyance contains a covenant by a purchaser to pay off an encumbrance on the property sold it is nothing more than an implied contract of indemnity. The contract of indemnity need not be express, it can be implied as well.

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