Jamna Das v. Ram Autar Jamna Das v. Ram Autar (the purchaser's undertaking to pay the mortgage)
(1911-12) 39 IA 7; ILR (1912) 34 All 63 · Privy Council · 1912
PrincipleA stranger to a contract cannot sue on it in India, even if it is for his benefit.
Facts
A mortgagor sold the mortgaged property to a purchaser, who undertook in the sale deed to pay off the mortgage money due to the mortgagee out of the purchase price left with him. The mortgagee sued the purchaser personally for the amount, relying on the purchaser's undertaking in the sale deed.
Held
The Privy Council held that the mortgagee had no right to sue the purchaser on the undertaking. Lord Macnaghten said the purchaser's contract was with the vendor alone; the mortgagee was no party to the sale and could not avail himself of a term in it. His remedy was against the mortgaged property and the mortgagor, not a personal decree against the purchaser.
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