ICA Section 125: Rights of indemnity-holder when sued
Indian Contract Act, 1872 · Chapter 8: Indemnity and Guarantee
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125. Rights of indemnity holder when sued. The promisee in a contract of indemnity, acting within the scope of his authority, is entitled to recover from the promisor.- (1) all damages which he may be compelled to pay in any suit in respect of any matter to which the promise to indemnify applies
(2) 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;
(3) 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.
Official reference: India Code, Legislative Department — checked: 29 September 2026.
This text is for reference, not legal advice. Consult the official source for the authoritative text.
Other sections in this chapter
- 124. "Contract of indemnity" defined
- 126. "Contract of guarantee", "surety", principal debtor" and "Creditor"
- 127. Consideration for guarantee
- 128. Surety's liability
- 129. "Continuing guarantee"
- 130. Revocation of continuing guarantee
- 131. Revocation of continuing guarantee by surety's death
- 132. Liability of two persons, primarily liable, not affected by arrangement between them that one shall be surety in other's default
- 133. Discharge of surety by variance in terms of contract
- 134. Discharge of surety by release of discharge of principal debtor
- 135. Discharge of surety shen cerditor compounds with, gives time to, or agrees not to sue principal debtor
- 136. Surety not discharged when agreement made with third person to give time to principal debtor
- 137. Creditor's forbearance to sue does not discharge surety
- 138. Release of one co-surety does not discharge others
- 139. Discharge of surety by creditor's act or omission impairing surety's eventual remedy
- 140. Rights of surety on payment or performance
- 141. Surety's right to benefit of creditor's securities
- 142. Guarantee obtaiend by misrepresentation, invalid
- 143. Guarantee obtained by concealment, invalid
- 144. Guarantee on contract that creditor shall not act on it until co-sureties joins
- 145. Implied promise to indemnify surety
- 146. Co-sureties liable to contribute equally
- 147. Liability of co-sureties bound in different sums