Contract Act, 1872
137. Creditor's forbearance to sue does not discharge surety.—
Mere forbearance on the part of the creditor to sue the principal ... absence of any provision in the guarantee to the contrary, discharge the surety. Illustration B owes to C a debt guaranteed by A. The debt
creditor, the legal consequence of which
is the discharge of the principal debtor.
135. Discharge of surety when
creditor compounds with, gives time ... Page 14 of 42
the surety, unless the surety assents to
such contract.
136. Surety not discharged when
agreement made with third person to
give
creditor, the legal consequence of which is the
discharge of the principal debtor.
135. Discharge of surety when creditor compounds with,
gives time ... principal debtor,
discharges the surety, unless the surety assents to such
contract.
...............
139. Discharge of surety by creditor's act or omission
impairing surety
surety and to pay the debt for which he had so become surety. He will however be discharged from his liability as surety ... surety or additional security in satisfaction of the first surety, the first surety will stand discharged. The following passage with reference to the discharge
creditor seeks to enforce the surety bond against some only of the joint sureties the other sureties will not on that account be discharged ... surety is joint and several and if a guarantor seeks to enforce the surety Bond against some only of the joint sureties, the other sureties
lays down, it is not every alteration or change which can discharge the surety. Only a material alteration, change or addition can discharge the surety ... amount to any material alteration in this documents so as to discharge the sureties. Under these circumstances, it will have to be held that there
surety
requires him to do, and the eventual remedy of the surety
himself against the principal debtor is thereby impaired,
the surety is discharged ... curtailment of the
surety’s remedy or enhancement in his liability. Surety has the
right to discharge all his liability when debt itself is subsisting
Union of India & Ors.3 , to submit that the release or discharge
of a principal borrower from the debt owned ... liquidation or
insolvency process, does not absolve the surety/guarantor of his/her
liability which arises out of an independent contract. Paragraph
protects the surety
against any conduct of the creditor which weakens the surety's
legal position.
30. For a surety to be discharged under ... surety. Only when the bank's
conduct is inconsistent with the surety's rights and causes loss can
the surety seek discharge
which is the discharge of the principal
debtor."
17. Section 135 of the Contract Act deals with
discharge of surety when creditor compounds with ... under:
"137. Creditor's forbearance to sue does not
discharge surety.--Mere forbearance on the
part of the creditor to sue the principal
