Sir John Beaumont.-This is an appeal from a judgment and decree of the High Court of Judicature at Madras, dated the 17th September, 1943, which varied a judgment and decree of the Court of the Subordinate Judge of Nellore, dated the 31st October, 1940.

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

The relevant facts are as follows:-

One Inuganti Venkata Rama Rao, the son of the second respondent (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, the second respondent (who will be referred to generally as “the vendor”) as his guardian, agreed to sell the said property to the father of the first respondent for Rs. 27,302. The purchaser was unwilling to purchase the property from the vendo