State of M.P. v. Kaluram
AIR 1967 SC 1105 · Supreme Court of India
An indemnity-holder may recover damages, costs and sums paid under a compromise if the compromise is not contrary to the contract of indemnity.
Unit I · Law of Contract – II
Contract of indemnity and contract of guarantee
Study aid only. Confirm statute numbers with the current bare Act and the official OU LL.B. (3-YDC) 2024–25 syllabus PDF.
Statute sections
| Act / instrument | Section | Name |
|---|---|---|
| Indian Contract Act, 1872 | 124 | Contract of indemnity |
| Indian Contract Act, 1872 | 125 | Rights of indemnity-holder when sued |
| Indian Contract Act, 1872 | 126 | Contract of guarantee, surety, principal debtor and creditor |
| Indian Contract Act, 1872 | 128–141 | Surety's liability, discharge and rights |
Landmark cases
Bank of Bihar Ltd. v. Damodar Prasad
AIR 1969 SC 297 · Supreme Court of India
The liability of a surety is co-extensive with that of the principal debtor; the creditor need not exhaust remedies against the principal before suing the surety.
Maharaja of Benares v. Har Narain Singh
ILR (1905) 27 All 548 · Allahabad High Court
A contract of indemnity obliges the indemnifier to make good loss caused by the specified conduct of the promisor or of any other person.