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….
Craythorne v. Swineburne 14 Ves. 160 (subrogation) FACTS: Newcastle Bank (NB) gave money to Henry Swineburne (HS), for paying to other bank, on the request of Sir John Swineburne (JS). Money was given on the security of two bonds. One being the joint and several bond of HS as principle and Craythorne (C) as surety;…
Lala Shanti Swarup v. Munshi Singh 1967 SCR (2) 312 (Section 124 of Indian Contract Act, Implied Indemnity) FACTS: The plaintiff-respondents (PR) mortgage their land to Bansidhar and Khub Chand (BK) for Rs. 12,000. Half of this mortgaged property was then sold by the real owner (PR) to Shanti Saran(S) (defendant-appellant, DA) at Rs. 16,000….
Gajanan Moreshwar v. Moreshwar Madan (1942) 44 BOMLR 703 (Section 124 of Indian Contract Act, when indemnity can be claimed) FACTS: Plaintiff (P) got a plot of land on lease from municipal corp. of Mumbai. P allowed Defendant (D) to erect building on that land. D, in this course, incurred debt of Rs.5ooo from building…