RIGHTS AND DUTIES OF INDEMNIFIER, INDEMNIFIED AND DISCHARGE OF CONTRACT OF INDEMNITY.- (Blog)


INTRODUCTION

Discussing off the contract of indemnity there are two parties involved in the same, in the contract of indemnity the Indemnifier promises the other person (Indemnity holder) to compensate for the losses arising out of the acts of the third person. Indemnity holder is the person to whose respect the compensation is to be made. Such contract can be implied as well and certain acts and omissions of the other indemnifier can let to the formation of the contract very easily, hence it is not necessary for this contract to be only express.

RIGHTS OF THE INDEMNITY HOLDER (INDEMNIFIED)

Rights of the Indemnity holder is determined by section 125[1] of the Indian contract act, according to which when such are the situations that the indemnity holder has not violated any aspect of the contract and is under the terms of the contract he can claim the damages from the Indemnifier when the indemnity holder is sued by the third party in pursuance of the contract from the safeguard of which the indemnity holder entered into the contract of indemnity.

The indemnity holder can settle the compensation of the amount with Indemnifier which he is paid in any sort of suit which was brought against him but provided that such matter in the suit is related to the terms of the contract. If any amount was paid in a suit of which there was no contract of indemnity then the Indemnity holder cannot claim the compensation for such amount paid.

Moreover, those amounts paid by the indemnity holder can also be claimed in which in bringing or defending the suit,  if the same was itself allowed by the indemnifier or according to the terms of the contract it was such that such suit can be brought or defended and the indemnifier will pay on it, the indemnity holder did not go against any terms and conditions of the indemnifier were compiled by thereto, While at the moment of bringing or defending such suit by the indemnity holder the very act to bring or defend the suit was still to be carried by the indemnity holder if no such indemnity contract existed between them.

Furthermore, amounts paid by the indemnity holder in compromise of any suit can also be claimed by the indemnity holder from the indemnifier provided such the indemnity holder during the very process of the same the indemnity holder did not go against any terms and conditions of the indemnifier and were compiled by thereto and also if such compromise in any suit by the indemnity holder was in such conditions that such step would not be in prejudice to the indemnity holder if there was no such contract of indemnity existed. 

RIGHTS OF THE INDEMNIFIER

The rights of the Indemnifier are not provided under any section of the contract law but section 141[2] of the Indian contract act, 1872, the rights of the Indemnifier is same as that of the rights of Surety in a Guarantee contract. The Indemnifier as far as rights of himself after paying off the Indemnified as promised by himself according to the terms of the contract such that there is no contractual obligations remaining, the Indemnifier is entitled to take that every step and entitled to every ways and means which was equipped, meant for Indemnified might have protected himself against or reimbursed himself for the loss.

DISCHARGE OF THE CONTRACT OF INDEMNITY

Here in the contract of indemnity the primary liability is of the Indemnifier is primary that is he must pay to the Indemnity holder all the essential sums promised as and according to the terms of the contract on the occurrence of the loss to the Indemnity holder.


- Siddharth
Maharaja Agrasen Institute of Management Studies.

Comments

Post a Comment

Popular posts from this blog

MARITAL RAPES IN INDIA: AN UGLY REALITY- (Blog)

Image
Marriage is a very pure tie of two human beings based on their common love and respect for each other. When it comes to my view on marriage I completely agree with a dialogue in a famous Indian movie Kabhi Alvida Na Kehna Kehte Hain shaadi ki buniyaad sirf aur sirf beinteha mohhabat honi chaahiye kyunki agar buniyaad galat ho to rishte toot jaate hain (A marriage should always be based on immense love for each other cause a relationship based on anything else can’t continue long). In our Indian society, every so often marriages are ‘arranged’ by the parents of a girl and a boy. The girl’s family usually considers a boy who is earning well and has some family property a good match for their girl while the boy’s family every so often looks for a good-looking girl who can cook and do other household chores efficiently as being a perfect match for their boy. So, you can understand very well, love is something most disregarded when we talk about marriage in India. In suc...
Read more

CYBER CRIME : A NEW BREED OF CRIMINAL- (Article)

Image
  ABSTRACT Cybercrimes are a new class of crimes to India speedily expanding due to wide use of Internet. Dishonest and greedy people take gain of easy and free access to Internet and perform any acts to please their needs. The requirement could be physiological or psychological in nature. Online shopping and extensive use of “social media” are root cause of cybercrimes. Much cognizance created for cybercrimes and users were educated. But still individuals do not complain it to authorities. Even somebody do it then also police or crime branch incapable to clear such complains in practical time period. Postponement in justice will lead to NO registration of complain. This is not healthy condition in free democratic INDIA. The law IT (Information Technology) Act 2000 and numerous sections of the IPC are in place but in large population country like India and China, it is very difficult to regulate crime caused by cyber world. We need to have self-discipline for better society. We...
Read more

Joseph Shine Vs. Union of India and Ors. - (Case Commentary)

Image
  JOSEPH SHINE ………………………………… PETITIONER V. UNION OF INDIA AND ORS…………………………….RESPONDENT (Writ Petition Cr. Appeal no. 194 of 2017)   COURT : THE HON’BLE SUPREME COURT OF INDIA DECISION : 27 JULY 2018 BENCH : DEEPAK MISHRA                  JUSTICE A.M. KHANWILKAR                  JUSTICE D.Y. CHANDRACHUD                  JUSTICE INDU MALHOTRA                  JUSTICE R.F. NARIMAN RELEVANT ACT/SECTIONS/ARTICLES : ARTICLE 15, 21 and ARTICLE 14                                   ...
Read more