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State Of Madhya Pradesh vs Kaluram on 5 September, 1966

As pointed out by this Court in State of Madhya Pradesh v. Kaluram(1), the expression "security" in this section is not used in any technical sense; it includes all rights which the creditor has against the property at the date of the contract. The surety is entitled on payment of the debt or performance of all that he is liable for to the benefit of the rights of the creditor against the principal debtor which arise out of the transaction which gives rise to the right or liability. The surety is therefore on payment of the amount due by the principal debtor entitled to be put in the same positionin which the creditor stood in relation to the principal debtor. If the creditor has lost or parted with the security without the consent of the surely, the latter is by the express provision contained in s., 141, discharged to the extent of the value of the security lost or parted with.
Supreme Court of India Cites 7 - Cited by 36 - J C Shah - Full Document
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