BIRDICHAND JIVRAJ Vs. STANDARD BANK LIMITED

JUDGEMENT

(1.) The question in this appeal is as to the liability of the defendant in respect of certain loans granted by the respondents on a security of shares of the Indian Specie Bank which were not fully paid and upon which on liquidation of that Bank a large liability in respect of the calls has resulted. It is conceded on behalf of the appellant that no question was raised in the lower Court either in the issues or the argument disputing the liability of the first defendant to indemnify the plaintiffs against the liability incurred by them as contributories in respect of the said shares in the winding up. And it is stated that it was not realized in the lower Court that the liability of the first defendant can be successfully disputed upon legal grounds.

(2.) The question is one of great importance as may be seen from the decree which provides for a sum aggregating Rs. 1,72,200 in respect of calls already paid in the liquidation and there is a further decree against the first defendant to indemnify the plaintiff Bank against further calls.

(3.) The plaintiffs allege that the question is not merely one of law but will turn largely on the question of fact, because they say that there was or were a conversation or conversations in which the first defendant, or his agent undertook to indemnify the plaintiff Bank in respect of any calls which might be made upon the shares.