Sk Kabir v. Narayandas Lachman Das Ltd. AIR 1955 Ori 24 (Implied Agreement, Partnership by status) Facts The defendants entered into two contracts with the plaintiff firm, which was unregistered, regarding the supply of mustard oil. The defendants, (when the plaintiffs had fulfilled their end of the contract) failed to supply the oil on the…
Deputy Commissioner of Sales Tax vs. K Kelukutty 1985 SCR Supl. (1) 135 (separate agreement for separate business) Facts The respondent is a partnership firm dealing in timber. When the firm’s Sales Tax Officer was assessing the firm’s turnover, he discovered that the partners of the firm owned a saw mill, and the partners…
Ansal Engg. Proj. Ltd. v. Tehri Hydro Development Corp. Ltd. & Anr. 1997 88 CompCas 149 SC (if no fraud involved, court has no role) FACTS: The petitioner/appellant (A) had undertaken to do some construction for the defendant/respondent(R) and as per the terms of the contract had furnished a bank guarantee (BG) for faithful performance…
Hindustan Steel Workers Construction (HS)[1] Ltd. v. G.S. Atwal & Co. (Engineers) Pvt. Ltd. (GS)[2] 1995 SCC (6) 76 (Unconditional Bank Guarantee, Performance Guarantee) FACTS HS and GS entered into contracts whereby GS was to construct 11 schools. The United Commercial Bank, Calcutta (Bank) gave two Bank Guarantees (BG1 &2) to HS on behalf…
ONGC v. SBI Overseas Branch, Bombay AIR 2000 SC 2548 FACTS ONGC[1] had awarded a large gas pipeline contract to an Italian consortium S[2] at a certain contract price (CP). The work was to be executed within a given date else S was liable to pay certain percentage of C.P. S was also obliged to…
State of Madhya Pradesh v. Kaluram 1967 SCR (1) 266 (Suretyship, Section 139 and 141 of Indian Contract Act, Subrogation) FACTS At an auction for sale of felled trees, Jagatram (J) was awarded the sale, on payment of a security and subsequent payment of installments. He executed a contract in favour of the Governor of…
Ramchandra B. Loyalka v. Shapurji N. Bhownagree (1940) 42 BOMLR 550 (Section 124, 126 and 145 of Indian Contract Act, Difference between Indemnity and Guarantee) FACTS: The plaintiff (P) was a sub-broker employed by the defendant broker (D) on 50% commission. P introduced 6 constituents and became answerable to the broker for them. The constituents…
National Highways Authority of India v. Ganga Enterprises and Anr. AIR 2003 SC 3823 (on demand performance guarantee) FACTS: Appellant (N) issued a tender notice for collection of toll on a part of a highway. For this purpose two types of securities were to be furnished, bank guarantee and performance security by way of a…
Amrit Lal Goverdhan Lalan v. State Bank of Travancore and Ors. 1968 SCR (3) 724 (ss.133, 135, 139 and 141 of Indian Contract Act, Suretyship, Subrogation) FACTS: Respondents 3 to 6, as partners of Respondent 2 firm (R2), entered into an agreement with a Bank (R1) to open a cash credit account to the extent…
Punjab National Bank Ltd. v. Bikram Cotton Mills & Anr. 1970 AIR 1973 (Difference between indemnity and guarantee) FACTS The first respondent company (R1) opened a cash-credit account with the appellant bank (A) and to secure repayment of the balance due at the foot of the account R1 executed three documents through its managing agents…
Radha Kanta Pal v. United Bank of India AIR 1955 Cal 217 (Section 139 of Indian Contract Act, Discharge, Rights of a surety) FACTS: The case concerns a contract in the nature of a fidelity bond or a guarantee. A (deceased) executed a security bond in favour of a Bank, B, in consideration of the…
Lakeman v. Mountstephen (1874) LR 7 HL 17 (primary and secondary liability) FACTS: Plaintiff (P) was employed by the local board of health to construct the main sewer of a town. After the completion, the board directed the owners and occupiers of the adjacent property to connect their drains with the main system within 21days….