KISHAN LAL AND ANOTHER versus BHANW AR LAL

KISHAN LAL AND ANOTHER versus BHANW AR LAL

A suit by an agent for indemnity from the principal for losses paid on their behalf is collateral to the underlying contract and is not hit by the Marwar notification, as the statutory indemnity right under Section 222 of the Indian Contract Act is not affected when the relevant acts and payments were outside Marwar. The notification does not render the agency contract or the indemnity claim illegal as the contracts were executed and performed outside Marwar.

Parties
Appellant: Kishan Lal and Another; Respondent: Bhanwar Lal
Jurisdiction
India
Judgment Date
12 May 1954
Procedural Posture
Civil Appeal / Appeal Under Article 132(1) From the Judgment and Order of the Rajasthan High Court
Outcome
Appeal allowed
Legal Topics
Agency, Indemnity of Agent, Illegality of Contract, Jurisdiction, Notification Prohibiting Contracts
Contract Law Agency Indemnity of Agent Illegality of Contract Jurisdiction Notification Prohibiting Contracts

Case Brief

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Parties

Kishan Lal and Another

Appellant

Bhanwar Lal

Respondent

Procedural Posture

Civil Appeal / Appeal Under Article 132(1) From the Judgment and Order of the Rajasthan High Court

Legal Issues

  1. 1 Whether a suit by an agent for indemnity against the principal is barred by a notification prohibiting forward bullion contracts exceeding 12 days in Marwar
  2. 2 Whether such transactions and indemnity claims are illegal and unenforceable in Marwar courts if contracts executed/performed outside Marwar

Ratio Decidendi

A suit by an agent for indemnity from the principal for losses paid on their behalf is collateral to the underlying contract and is not hit by the Marwar notification, as the statutory indemnity right under Section 222 of the Indian Contract Act is not affected when the relevant acts and payments were outside Marwar. The notification does not render the agency contract or the indemnity claim illegal as the contracts were executed and performed outside Marwar.

Court Disposition

Appeal allowed

Orders

  • Judgments of the courts below are set aside
  • Case remanded to the Original Court of Jodhpur to be tried on all other issues after giving parties opportunity to adduce evidence