Sara Jain, O.P. Jindal Global University
ABSTRACT
This paper is an analytical study on the Indian Law of Indemnity. A comparative analysis of 34 cases that brought the issue of indemnity as understood under section 124 and 125 of the Indian Contract Act, 1872 (Further as, “The Act”) has been illustrated with the help a table. It is evident from the table that these sections are open to more than one interpretation and courts have developed a cohesive test for indemnity that is uniformly accepted across India. In some cases, the judges have very narrowly interpreted the sections pertaining to Indemnity in the Act, limiting its applicability. While on the other hand, a different array of cases have allowed for a wider interpretation of the same sections. Through this paper, I aim to focus on both these types of interpretations and also throw light on other aspects of indemnity law in India and the way they can be restructured by the legislature to extend the application of the statutes. The recommendations given in the paper are evident of the role of legislature in reforming law; the analysis and interpretation of these statutes elaborated in this paper suggests how the judiciary plays a role in the application of laws in the country. This paper is a result of secondary research with sources being cases, law commission report, books, and journal articles. The aim of my paper is to give an analysis of the way indemnity laws are drafted and applied in India, delve into the fact of the gap that exists between the two and give suggestive recommendations with regard to the same.
