Section 125(3) in Jammu and Kashmir Contract Act, Svt. 1977 (1920 A.D.)
(3)all sums which he may have paid under the terms of any compromise of any such suit, if the compromise was not contrary to the orders of the promiser, and was one which it would have been prudent for the promisee to make in the absence of any contract of indemnity, or if the promiser authorised him to compromise the suit.The promiser in a contract of indemnity, who has indemnified the promisee is entitled to the rights of a surety as defined in section 141.Any contract of indemnity which has been obtained by means of misrepresentation, made by the promisee or with his knowledge or assent, concerning a material part of the transaction is invalid.Explanation-Keeping silence as to material circumstance is such misrepresentation.
