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State Of Madhya Pradesh vs Kaluram on 5 September, 1966

In Amrit Lal v. State Bank of Travancore , the Supreme Court has referred to the above judgment and pointed but, As pointed out by this Court in State of Madhya Pradesh v. Kaluram , 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 position in 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 surety the latter is by the express provision contained in Section 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

Amrit Lal Goverdhan Lalan vs State Bank Of Travancore & Ors on 11 April, 1968

In Amrit Lal v. State Bank of Travancore , the Supreme Court has referred to the above judgment and pointed but, As pointed out by this Court in State of Madhya Pradesh v. Kaluram , 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 position in 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 surety the latter is by the express provision contained in Section 141 discharged to the extent of the value of the security lost or parted with.
Supreme Court of India Cites 6 - Cited by 47 - V Ramaswami - Full Document
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