VISWANATHAN Vs. LESLIE PHILIP

JUDGEMENT

(1.) Distinction between an "agreement" and a "bond" arises for a decision in this Writ Petition.

(2.) Short facts necessary for a decision of the question are:

(3.) Decisions relied on by the learned Sub Judge and referred to in the order under challenge and the decisions relied on by the counsel for Petitioner highlighted one thing - if liability to pay the amount is created for the first time by the document, it is a bond while, if the document speaks about liability of the person concerned to pay a preexisting liability it is not a bond. In West Coast Electroplating Co. Ltd. v. Sreedharan (supra) it was observed as a distinguishing feature between an obligation under a bond and an obligation under an ordinary contract that a breach of an obligation under a bond does not sound in damages whereas damages is what are who break an ordinary contract is subject to. It was held that in every case one has to look at the intention of the parties and if the intention of parties is not to extinguish the earlier obligation but to keep it alive and the document subsequently executed only provides for the method of payment and for reduction of interest under certain contingency such a document is merely an agreement and not a bond.