Rights of indemnity-holder when sued
Section 125 of the Indian Contract Act, 1872 deals with rights of indemnity-holder when sued. The promise 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; The Act came into force on 01 Sep 1872.
The promise 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.
Section 125, The Indian Contract Act, 1872 (Act 9 of 1872).
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… That apart, Mr. Rao would argue that the present contract is a contract of indemnity and the term indemnity has to be understood in terms of Section 124 and 125 of the Indian Contract Act, 1872 which read as under: > ―124. "Contract of indemnity" defined.-A contract by which one party promises to save the other from loss caused to him by the conduct of the promisor himself, or by the conduct of any other person, is called a "contract of indemnity." 125. Rights …
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… A contract of insurance is a contract by which the insurer promises to save the insured from the loss caused to him by contract of any other person. Under Section 125 of the Indian Contract Act, 1872, the promise, acting within the scope of his authority, is entitled to recover from the promiser or damages which he may be compelled to pay in any suit in respect of any matter to be the promise to indemnify applies. It is this principle which is incorporated in the provisions of …
Questions about Section 125
What does Section 125 of the Indian Contract Act deal with?
Section 125 of the Indian Contract Act is headed "Rights of indemnity-holder when sued". The promise 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;
How do I find court cases under Section 125 of the Indian Contract Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Contract Act 125, section 125 Contract Act, section 125 of the Indian Contract Act. People searching for it also type contract act 1872 section 125. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
When did Section 125 of the Indian Contract Act come into force?
Section 125 of the Indian Contract Act, cited as Contract Act 125, came into force on 01 Sep 1872, having been enacted on 25 Apr 1872. It is in force as at the date shown on this page.
Other sections of this Act
- 73. Compensation for loss or damage caused by breach of contract1822 words
- 23. What considerations and objects are lawful, and what not596 words
- 74. Compensation for breach of contract where penalty stipulated for577 words
- 28. Agreements in restraint of legal proceeding void512 words
- 25. Agreement without consideration, void, unless it is in writing and registered, or is a promise to compensate for something done, or is a promise to pay a debt barred by limitation law423 words
- 16. "Undue influence" defined397 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.