RAJA VELUGOTI, SARVAGNA KUMARA KRISHNA YACHENDA BAHADUR GARU Vs. RAJA SOBHANADRI APPARAO BAHADUR ZAMINDAR GARU

JUDGEMENT

(1.) This is an appeal from a judgment and decree of the High Court of Judicature at Madras dated 17th September 1943, which varied a judgment and decree of the Court of the Subordinate Judge of Nellore dated 3l October, 1940.

(2.) The first question for determination is whether under a contract of indemnity dated 25 August 1910, the appellants are liable to indemnify respondent 1 for loss sustained by him in connection with a certain purchase. In the event of the appellants being held not liable respondent l desires to contend that respondent 2 is liable to make good to him the whole or part of his loss.

(3.) The relevant; facts are as follows : One Inuganti Venkata Rama Rao, the son of respondent 2 (who will be referred to hereafter as "the son"), obtained from his maternal grandfather, by way of gift, a one-fourth share in the Mokhasa Village of Somavaram. During his minority, respondent 2 (who will be referred to generally as "the vendor"), as his guardian, agreed to sell the said property to the father of respondent 1 for Rs. 27,302. The purchaser was unwilling to purchase the property from the vendor as guardian of a minor without an indemnity. Accordingly the Maharaja of Venkatagiri, the grandfather of the appellant; who was a close relation of the son, undertook to indemnify the purchaser from all loss he might suffer if the son after attaining majority, should dispute the alienation. Such indemnity was contained in a written bond dated 25 August 1910. The question raised in the appeal depends in the main on the construction of such bond, the precise terms of which will be discussed later.