LEGAL CASE MINE

Who will be liable when your Credit Card is hacked and the money is stolen.  National Consumer Forum in its very recent judgement decided on the case where the consumer's credit card has been hacked and the money was stolen.  In the case of HDFC BANK LTD. V. JESNA JOSE the consumer, Jesna Jose, who uses the Forex credit card service of the HDFC bank found that her credit card has been hacked after she recieved the messages of transactions on her phone. She filed the case in consumer redressal forum at Thane. The court gave its decision in the favour of Jesna Jones holding the bank liable. The court held that as there was no negligence on the part of consumer due to which the fraud happened, the bank is solely liable for all the money lost.  Appeal was filled by the bank in National Consumer Forum which upheld the decision of District Forum. It held that when the fraud happens not due to the negligence of the consumer but due to the fault in banking system, the bank will b...

 INJURIA SUNE DAMNO Injuria means infringement of the legal right or unauthorised interference with the right conferred by the law. Damnum means substantial harm, loss or damage in respect of money, comfort, health or the like.  Thus Injuria sine damno means violation of the legal right without causing any substantial harm, loss or damage to the plaintiff. In such cases there is no need to prove that as a consequence of an act, tye plaintiff has suffered any harm. The only thing which is to be proved is that the plaintiff's legal right has been violated.  Ashby v. White, is a landmark case which is needed to be mentioned while understanding about Injuria sine damno. In this case the defendant, a polling officer, didn't let the plaintiff cast his vote. Although there was no substantial harm to the plaintiff as the candidate whom the plaintiff wanted to vote won the election, but the Holt, CJ. observed that if the plaintiff has the right, he must have the necessary means to...

BAILMENT 1. Delievery of goods for some purposes. There should be the transfer of possession of goods from one person to another. Delievery need not to be actual, it may be sometime constructive or symbolic delivery as provided under section 149 of Indian Contract Act, 1872. It is to be noticed that according to section 71vof Indian Contract Act, the finder of the goods is also deemed to be the bailee of those goods. In Jagdish Singh Tarikha v. Punjab National Bank, when the gold ornaments and jewellery was delivered to the bank, it was locked, sealed and properly wrapped and the receipt describing the contents of the box was given to bank. When the box reached delhi, it was found that it was not in the condition in which it was delivered. The court ordered for the compensation by the bank to the plaintiff.  If a person, without a formal agreement, assumes the custody or someone's goods, it is sufficient to constitute bailment as in the case of Ultzen v. Nicols, where the waiter wh...

RIGHTS OF SURETY AGAINST PRINCIPAL DEBTOR Rights of subrogation (section 140)  According to section 140 of Indian Contract Act, when the surety made the necessary payment or make performance of all what he is liable for, he is invested with all the rights which the creditor has against the principal debtor. In the other words, the surety steps into the shoes of the creditor and by the action against the principal debtor, could recover all what can be recovered by the creditor from the principal debtor. He can be indemnified by the principal debtor for all what he rightly paid and aslo he is entitled to the benefit of all the securities, creditor has against the principal debtor at the time of contract of suretyship is entered into.  Right of indemnity against the principal debtor (section 145).  According to section 145, after the payment of liability by the surety, due to the the default of principal debtor, the surety can recover from the principal debtor all what he ha...

CONTACT OF GUARANTEE  Either oral or written contract : Section 126 of Indian Contract Act provides that the guarantee may be either oral or written. English law is different in this respect as it provides for the contract of guarantee to be necessarily written and signed by the party to be charged therewith.  There should be a principal debt : The Contract of guarantee pre supposes the principal debt. If there exist no principal debt, and only a mere promise to compensate in certain situation, it is a Contract of indemnity.  Consideration for surety : Consideration, as required in other Contracts, is also necessary in Contract of guarantee. Section 127 of indian Contract act provides that benefit to the principle debtor is sufficient consideration for surety. If the promise of the surety is independent of any benefit to the surety, then the agreement is void.  Guarantee by misrepresentation or concealment is invalid : If these is misrepresentation or concealment of ...

DISCHARGE OF SURETY Section 130 (revocation by the surety).  This section permits the revocation when it is a continuing guarantee as regards to the future transactions only. However when the transaction has already been made, surety's liability with regard to that transaction cannot be revoked by a subsequent notice. When the consideration is single and indivisible, the revocation as to the future transactions is not possible. For instance in the case of guarantee for a servant on employment. ( Lloyds v. Harper, Gopal Singh v. Bhawani Prasad). In Sita Ram Gupta v. Punjab National Bank, the court held that the provisions of the agreement can override section 130 of the Indian Contrct Act and the guarantor can give away his right provided under section 130 of Indian Contract Act.  Section 131 (death of the surety).  This section provides that the guarantee as regards to the future transactions automatically terminates when the surety dies, untill and unless contrary to thi...