Gajanan the
plaintiff in the instant case, was a lease-holder of a plot of land under the
Bombay Municipality for a long period. He transferred the lease to the
defendant, Moreswar Madan and the same was approved by the Municipality. But no
execution to that effect was made in favour of the defendant. So, the lease
continued to remain in the name of the plaintiff. The defendant borrowed Rs.
5000/- from ‘A’. The plaintiff at the defendant’s request, executed the
mortgage. The defendant agreed to pay the
principal and interest and release the mortgage. As the Defendant did not pay
and release the mortgage deed, the plaintiff sued the defendant for indemnity.
The defendant contends that the suit is premature as the plaintiff has not yet
suffered any loss.
The Privy Council, through Chagle J.,
decided in favour of the plaintiff and held the defendant liable.
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