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CS Professional · Drafting, Pleadings and Appearances · Commercial Contract Management

Nandini, proprietor of a newspaper, publishes a defamatory article about a rival at the request of Girish, who agrees in writing to indemnify her against all costs and damages of any action. The rival sues Nandini, who pays Rs 1,50,000 in damages and Rs 20,000 in expenses. What is the legal position?

Girish is not liable to indemnify Nandini. Section 224 provides that an employer who engages another to do a criminal act is not liable to indemnify the agent against its consequences, even on an express promise. Its illustration on a newspaper libel is directly on point, covering both damages and expenses.

  1. AGirish must indemnify her in full, as the written promise is express
  2. BGirish must indemnify her for the expenses only, as costs are separate from damages
  3. CGirish need not indemnify her, because an employer is not liable to indemnify an agent against the consequences of a criminal actCorrect
  4. DGirish must indemnify her for half, as both share the wrongdoing

Explanation

Section 224 states that where one person employs another to do a criminal act, the employer is not liable to the agent on an express or implied promise to indemnify against its consequences. Illustration (b) of that section covers a libel published at the employer's request with an indemnity for costs and damages. So the express promise gives no remedy, either for damages or expenses.

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