RAJA BAHADURI DHANRAJ GIRJI versus RAJA P. PARTHASARATHY RAYANIMVARU AND OTHERS.

RAJA BAHADURI DHANRAJ GIRJI versus RAJA P. PARTHASARATHY RAYANIMVARU AND OTHERS.

Surety bonds executed in favour of the court are discharged by compromise decrees if the terms indicate the surety undertook liability on the basis that the dispute would be decided on the merits and not amicably settled. In the present case, the terms and circumstances show the bond's liability is discharged by the...

Source-derived case information.

Parties
Appellant: Raja Bahadur Dhanraj Girji; Respondents: Raja P. Parthasarathy Rayanimvaru and Others
Jurisdiction
India
Judgment Date
04 September 1962
Procedural Posture
Civil Appeal / Judgment
Outcome
Appeal dismissed
Legal Topics
Surety Bond, Discharge of Surety, Indian Contract Act Section 135, Compromise Decree
Contract Law Surety Bond Discharge of Surety Indian Contract Act Section 135 Compromise Decree

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 3 Authorities cited 10 Party arguments 2
Sign in to unlock

Parties

Raja Bahadur Dhanraj Girji

Appellant

Raja P. Parthasarathy Rayanimvaru and Others

Respondents

Procedural Posture

Civil Appeal / Judgment

Legal Issues

  1. 1 Whether the liability of surety under a bond executed in favour of court is discharged by a compromise decree.
  2. 2 Whether principles underlying section 135 of the Indian Contract Act are applicable to court surety bonds.

Ratio Decidendi

Surety bonds executed in favour of the court are discharged by compromise decrees if the terms indicate the surety undertook liability on the basis that the dispute would be decided on the merits and not amicably settled. In the present case, the terms and circumstances show the bond's liability is discharged by the compromise decree.

Court Disposition

Appeal dismissed

Orders

  • Civil Appeal No. 345 of 1959 is dismissed with costs.