Rights and Duties of Indemnifier
RIGHTS AND DUTIES
0F
INDEMNIFIER
BY : AVANTIKA MAHAJAN
CONTENTS
1.
Who is an
INDEMNIFIER
?
2.
INDEMNITY HOLDER
3.
Contract of Indemnity
4.
RIGHTS
AND
DUTIES
•
Indemnifier
•
Indemnity holder
•
Case Laws
•
Conclusion
INDEMNIFIER
•
Indemnify
•
Indemnifier is someone
or something which
protects against or
compensates for the loss
or damage.
Example Car insurance
•
Anita buys a car and get the insurance done
for her car and pays her premiums timely.
After few months her car gets damaged due
to an accident then she goes to the
insurance company to compensate for the
loss. Her car gets repaired by the insurance
money.
•
Here The Insurance Company is the
Indemnifier.
INDEMNITY HOLDER
•
The person whose losses
the indemnifier promises
to compensate or
reimburse is called
Indemnity Holder.
•
Indemnified
Example
•
Abhay contracts to indemnify Bobby against
the consequences of any suit proceedings
which Clara may take against Bobby in respect
of a transaction of 1000 Ruppees. If Clara
does initiate the legal proceeding against
Bobby in that matter of transaction of 1000
Rupee and bobby was made to pay for the
damages to Clara. Now, Abhay will be liable to
indemnify or compensate Bobby for what
Bobby had to pay in the case before.
•
Here Abhay is the indemnifier and Bobby is
indemnified.
Contract of Indemnity
Contract
Of
Indemnity
Indemnity
Holder
Indemnifier
Contract of Indemnity
•
One party promises to other party to
make good its losses
•
Losses may arise due to conduct of
1.
Other party
2.
Somebody’s else.
•
Contingent contract
•
Commercial contract
Section
124
RIGHTS AND DUTIES
•
Indemnity is a right as well as a duty.
1.
Duty:- It is duty to make good any
Loss, damage or liability incurred
by the another.
2.
Right:- The right of an injured party
to claim reimbursement for its loss,
damage from a person who has
such duty.
RIGHTS AND DUTIES OF INDEMNIFIER AND INDEMNIFIED
INDEMNIFIER
INDEMNITY HOLDER
RIGHTS OF INDEMNIFIER
•
Indemnifier is not liable until
the indemnified has suffered
the loss.
•
Indemnified can compel the
indemnifier to make good his
loss although he has not
discharged his liability
RIGHTS OF INDEMNIFIER
•
Alteration in terms and conditions of contract can lead to
rejection of claim of reimbursement.
•
In
Bihal
Chandra v. Chattur Sen (AIR 1976 ALL
506),
where the seller had promised the purchaser to
indemnify him against the fees, it was held, if any, that
such indemnity clause would include only the existing
fees and not those subsequently imposed, albeit
retrospectively.
•
Jaswant Singh v. Section of state Bombay,
DUTIES OF INDEMNIFIER
•
As per Section 125 of the Indian Contract Act,
1872 the following rights are available to the
promisee/ the indemnified/ indemnity-holder
against the promisor/ indemnifier, provided he has
acted within the scope of his authority.
•
RIGHT TO RECOVER DAMAGES PAID IN A SUIT
[SECTION 125(1)]:
An indemnity-holder has the
right to recover from the indemnifier all damages
which he may be compelled to pay in any suit in
respect of any matter to which the contract of
indemnity applies.
DUTIES OF INDEMNIFIER
•
RIGHT TO RECOVER COSTS INCURRED IN
DEFENDING A SUIT [SECTION 125(2)]:
An
indemnity-holder has the right to recover from
the indemnifier all costs which he may be
compelled to pay in any such suit if, in bringing
or defending it, he did not contravene the
orders of the promisor, and acted as it would
have been prudent for him to act in the
absence of any contract of indemnity, or if the
promisor authorized him to bring or defend
the suit.
DUTIES OF INDEMNIFIER
•
RIGHT TO RECOVER SUMS PAID UNDER
COMPROMISE [SECTION 125(3)]:
An
indemnity-holder also has the right to recover
from the indemnifier all sums which he may
have paid under the terms of any compromise
of any such suit, if the compromise was not
contrary to the orders of the promisor, and was
one which it would have been prudent for the
promisee to make in the absence of any
contract of indemnity, or if the promisor
authorized him to compromise the suit
.
CASE LAWS
•
Sham sunder v. Chandu lal
•
Ranganath v. Pachusao
•
Gajanan Moreshwar v. Moreshwar Madan
•
Chuni Bai v. Nathu Bai
CONCLUSION
The essence of the contract of
indemnity is the loss to the
party, i.e. Indemnification can be
done only if the loss is incurred
to the other party, or if it is sure
that the loss will incur.
Thank
You
Learn about the roles of indemnifier and indemnity holder in contracts, including their rights and duties. Explore examples and case laws to understand indemnity better, covering the concept of indemnification in various scenarios.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
RIGHTS AND DUTIES 0F INDEMNIFIER BY : AVANTIKA MAHAJAN
CONTENTS 1. Who is an INDEMNIFIER ? 2. INDEMNITY HOLDER 3. Contract of Indemnity 4. RIGHTS AND DUTIES Indemnifier Indemnity holder Case Laws Conclusion
INDEMNIFIER Indemnify Indemnifier is someone or something which protects against or compensates for the loss or damage.
Example Car insurance Anita buys a car and get the insurance done for her car and pays her premiums timely. After few months her car gets damaged due to an accident then she goes to the insurance company to compensate for the loss. Her car gets repaired by the insurance money. Here The Insurance Company is the Indemnifier.
INDEMNITY HOLDER The person whose losses the indemnifier promises to compensate or reimburse is called Indemnity Holder. Indemnified
Example Abhay contracts to indemnify Bobby against the consequences of any suit proceedings which Clara may take against Bobby in respect of a transaction of 1000 Ruppees. If Clara does initiate the legal proceeding against Bobby in that matter of transaction of 1000 Rupee and bobby was made to pay for the damages to Clara. Now, Abhay will be liable to indemnify or compensate Bobby for what Bobby had to pay in the case before. Here Abhay is the indemnifier and Bobby is indemnified.
Contract of Indemnity Indemnity Holder Indemnifier Contract Of Indemnity
Section 124 Contract of Indemnity One party promises to other party to make good its losses Losses may arise due to conduct of 1. Other party 2. Somebody s else. Contingent contract Commercial contract
RIGHTS AND DUTIES Indemnity is a right as well as a duty. 1. Duty:- It is duty to make good any Loss, damage or liability incurred by the another. 2. Right:- The right of an injured party to claim reimbursement for its loss, damage from a person who has such duty.
INDEMNIFIER INDEMNITY HOLDER RIGHTS AND DUTIES OF INDEMNIFIER AND INDEMNIFIED
RIGHTS OF INDEMNIFIER Indemnifier is not liable until the indemnified has suffered the loss. Indemnified can compel the indemnifier to make good his loss although he has not discharged his liability
RIGHTS OF INDEMNIFIER Alteration in terms and conditions of contract can lead to rejection of claim of reimbursement. In Bihal Chandra v. Chattur Sen (AIR 1976 ALL 506), where the seller had promised the purchaser to indemnify him against the fees, it was held, if any, that such indemnity clause would include only the existing fees and not those subsequently imposed, albeit retrospectively. Jaswant Singh v. Section of state Bombay,
DUTIES OF INDEMNIFIER As per Section 125 of the Indian Contract Act, 1872 the following rights are available to the promisee/ the indemnified/ indemnity-holder against the promisor/ indemnifier, provided he has acted within the scope of his authority. RIGHT TO RECOVER DAMAGES PAID IN A SUIT [SECTION 125(1)]: An indemnity-holder has the right to recover from the indemnifier all damages which he may be compelled to pay in any suit in respect of any matter to which the contract of indemnity applies.
DUTIES OF INDEMNIFIER RIGHT TO RECOVER COSTS INCURRED IN DEFENDING A SUIT [SECTION 125(2)]: An indemnity-holder has the right to recover from the indemnifier all costs which he may be compelled to pay in any such suit if, in bringing or defending it, he did not contravene the orders of the promisor, and acted as it would have been prudent for him to act in the absence of any contract of indemnity, or if the promisor authorized him to bring or defend the suit.
DUTIES OF INDEMNIFIER RIGHT TO RECOVER SUMS PAID UNDER COMPROMISE [SECTION 125(3)]: An indemnity-holder also has the right to recover from the indemnifier all sums which he may have paid under the terms of any compromise of any such suit, if the compromise was not contrary to the orders of the promisor, and was one which it would have been prudent for the promisee to make in the absence of any contract of indemnity, or if the promisor authorized him to compromise the suit.
CASE LAWS Sham sunder v. Chandu lal Ranganath v. Pachusao Gajanan Moreshwar v. Moreshwar Madan Chuni Bai v. Nathu Bai
CONCLUSION The essence of the contract of indemnity is the loss to the party, i.e. Indemnification can be done only if the loss is incurred to the other party, or if it is sure that the loss will incur.
