...further issued a notification suspending all liabilities under contracts to which the said undertaking was a party. While considering the liability of the guarantors, the Supreme Court observed:“any proceeding against the guarantor would remain unaffected by the issuance of such a notification. Under S. 128 of the Indian Contract Act, 1872, save as provided in the contract, the liability of the surety is coextensive with that of the principal-debtor. The...Prasad, AIR 1969 SC 297, it has been held that the liability of a surety is not deferred until remedies against principal-debtor are exhausted. Damodar Prasad, defendant No. 1, in that...deferred until the creditor exhausted his remedies against the principal-debtor. The Act does not say that when a notification is issued under S. 7(1)(b) of the Act the remedies against the guarantors...

...raised by the revision petitioner who is the second respondent before the Arbitrator is that she was a surety only and not the principal debtor and that she should not have been proceeded against when the principal debtor is available. For this question, on the part of the respondent, it would be answered that under Section 128 of the Indian Contract Act, ‘the liability of the surety is..., 1982 (hereinafter referred to as the ‘Act’) a surety can be proceeded against for any dispute relating the chit business; (ii) that under Section 128 of the Indian Contract Act..., the liability of the surety is co-extensive with that of the Principal Debtor; that under Section 67 of the Act, the Registrar or the nominee hearing a dispute, shall in addition to the powers...

...execution of the mortgage decree alone and then to proceed against the guarantor. Under S. 128 of the Indian Contract Act the liability of the surety is co-extensive with...that of the principal debtor. There is no legal requirement that the creditor must first proceed against the mortgage property, and only thereafter against the debtor or the guarantor.8...Corporation under a one time settlement. The record illudes the notice under S. 29 whereas on page 189, Annexure 12 to the writ petition, against item No. 7, the name of Messers. Shakti Glass...

...is not reasonable, in my opinion, to hold that he paid the sum wrongfully within the meaning of Section 145 of the Indian Contract Act when he paid it in satisfaction of a decree passed against him. It must be treated as a sum rightfully paid under the guarantee. The liability of the principal debtor to indemnify the surety is...enforce his right against the surety. In this case the effect of the various sections of the Indian Contract Act has been considered with reference to a state of facts under...-surety, the claim was kept alive by their own acts committing of the payments of interest on two occasions; that under Section 145 of the Indian Contract Act, the surety is...

...and the proceedings, and moreover even assuming that there is a dispute raised by the principal debtor on account of the amount due from the principal debtor, as provided under the provisions of the Indian Contract Act, 1872, the creditor is at liberty to proceed against the guarantor, in accordance with the provisions contained under section 128 of the Indian contract Act, 1872, which specifies that the liability of the surety is...Contract Act, by which it is stipulated that in every contract of guarantee there is an implied promise by the principal debtor to indemnify the surety, and the surety is entitled to recover from the...-extensive with that of the principal debtor, unless it is otherwise provided by the contract. Which thus also means, even without proceeding against the principal...

...of law even for a moment. The reasonings given in Exts. P-2 and P-4 cannot be legally sustained. They cut at the very root of the well settled legal principle that the liability of a surety is co-extensive with that of the principal debtor as adumbrated under Section 128 of the Indian Contract Act and interpreted by a catena of decisions of the Supreme Court and by this Court. What is stated in Ext. P-2 order of the Board of Revenue, as a justification for not proceeding against the...recapitulate, under Section 128 of the Indian Contract Act as also under Ext. P-1 agreement, the liability of a surety is co-extensive with that of the principal debtor unless it is otherwise provided by the contract. It is settled law that a surety may be proceeded against without...proceed either against the principal debtor or against other sureties before proceeding against him since the liability of a surety is joint and several (vide Indian Contract Act, 1872...

..., however, be mentioned that under the common law, which finds re-enactment in Section 128 of the Indian Contract Act, 1872, the liability of the surety is co-extensive with that of the principal debtor unless it is otherwise provided by the contract. It means that the liability must be proved against the surety in the same way as against the principal debtor. Thus under the...decree not only against the principal debtor but also against the sureties; and (3) the provisions in the Act relating to enforcement of the liability of a surety were ultra vires Article 14 of...Court (sic Act) apply, if the extent of the liability sought to be enforced against a surety is up to Rs 50,000 a petition under Section 31 read with Section 32 of the Act would lie before the...

...unaffected by the issuance of such a notification. Under Section 128 of the Indian Contract Act, 1872, save as provided in the contract, the liability of the surety is co-extensive with that of the...belonging to Respondent 1 had been taken over by the Central Government under the Act, the trial of the suit filed against Respondent 1 for recovery of any amount due from the sugar undertaking was...principal debtor. The sureties thus became liable to pay the entire amount. Their liability was immediate and it was not deferred until the creditor exhausted his remedies against the principal debtor...

...surety only and not the principal debtor and that she should not have been proceeded against when the principal debtor is available. For this question, on the part of the respondent, it would be answered that under Section 128 of the Indian Contract Act, the liability of the surety is...contract’. So far as Section 128 of the Indian Contract Act is concerned, the said liability which is co-extensive with the principal debtor must be proved against the surety...will be subrogated to the rights of the creditor under Section 140 of the Indian Contract Act, and he may then recover the amount from the principal. The very object of the...

...the Presidential Insolvency Act was not maintainable. Apart from that, under section 146 of the Indian Contract Act, the appellant surety was liable to contribute equally...with the principal debtor. Hence, the entire liability cannot be thrust upon the appellant. The calculation of interest was not correctly done but all the above aspects have not been considered by the...execute the entire decree and also could repossess and sell the assets given on hire purchase. The criminal case filed under section 138 of the Negotiable Instrument Act was...

...section 140 of the Indian Contract Act. As highlighted in the case of State Bank of India v. Indexport Registered (supra), the decree-holder would be entitled to proceed against the Guarantor first for the execution of the decree. As provided under section 128 of the Indian Contract Act. the liability of the surety is co-extensive with that of the principal debtor, unless...Prasad, reported in AIR 1969 SC 297, it is argued that the liability of the surety is co-extensive with that of the principal debtor. The surety is liable to pay the entire amount. His...liability is immediate. It is not deferred until the creditor exhausts his remedies against the principal debtor.10. Mr. Bhattacharjee has also relied on the case of...

...the mortgage decree alone and then to proceed against the guarantor. Under Section 128 of the Indian Contract Act the liability of the surety is co-extensive with that of...proceed against the principal debtor or against the mortgaged property and only thereafter against the guarantor. This submission is not correct. In...the principal debtor. There is no legal requirement that the creditor must first proceed against the mortgage property, and only thereafter against the debtor or the guarantor. 9. In...

...of all that he is liable for. Is invested with all the rights which the creditor has against the principal debtor. Under S. 141 of the Contract Act, a surety is entitled to...126 of the Indian Contract Act defines “Contract of guarantee”, “Surety”, “Principal-debtor” and “Creditor”. It says that a ‘contract of guarantee’ Is a contract to perform the promise, or discharge...S. 127 of the Indian Contract Act, anything done, or any promise made, for the benefit of the principal-debtor may be a sufficient consideration to the surety for giving the guarantee. The...

...Indian Contract Act reads :“A surety is entitled to the benefit of every security which the creditor has against the principal debtor at the time when the contract of suretyship is...creditor has against the principal debtor, i.e the right to enforce the security and all means of payment. Under Section 145 of the Indian Contract Act, he has a right to...give time to or not to sue, the principal debtor discharges the surety unless the surety assents to such contract.”Whether the act of the plaintiff in obtaining a consent decree against...

...position of law of guarantee. It is also necessary to state that the liability of surety is at par with principal debtor. 15. Per contra, Section 137 of the Indian Contract Act reads as under:- "137. Creditor's forbearance to sue does not discharge surety - Mere forbearance on the part of the creditor to sue the principal debtor or to enforce any other remedy against him.../- and balance is on the debtor. 09. It is not in that way. Both the Contract Act and the Transfer of Property Act recognize the extent of liability. Insofar as the surety, he is to...of liability. 19. In case discharge of liability by the surety, he can always invoke right of subrogation against the principal debtor. 20. Thus, the very...

...service. As rightly pointed out by the learned counsel for the fourth respondent, under Section 128 of the Indian Contract Act, 1872, the liability of the surety is co...Act, 1872, the liability of the surety is co-extensive with that of the principal debtor. In support of the above view, the fourth respondent has produced the judgment of this Court in W.P(C...the consent letter issued by the petitioner permitting the fourth respondent to realise the amount as stated above. It is also contended that under Section 128 of the Indian Contract...

...from 15.03.2020 to 28.02.2022 from limitation. Therefore, the present Petition filed on 16.07.2023 is within time. 8. Under Section 128 of the Indian Contract Act, 1872, the liability of a surety is co-extensive with that of the principal debtor, unless otherwise provided by contract. Thus, upon default by the Corporate Debtor, the Financial Creditor is entitled to proceed against the Personal Guarantor. 9. Under Section...Only) as on 30.06.2017, with continuing interest and penalties thereafter. The record reflects that the account of the Corporate Debtor was classified as NPA on 28.10.2015, triggering default under...guarantees, including that of the Applicant. 6. Despite issuance of notices under SARFAESI Act, 2002, and rejection of an OTS proposal dated 24.06.2019 (rejected on 14.08.2019...

...proceeded against without demand against him, and without first proceeding against the principal debtor." (underlining supplied) The observation of Chitty that surety can be proceeded without demand against him is general in nature and only prima facie. In the light of section 128 of the Indian Contract Act. which specifically provides that the liability of a surety would be co-extensive with the principal debtor unless the contract provides othersie. Under the...: "128 The liability of the surety is co-extensive with that of the principal debtor unless it is otherwise provided by the contract...." Section 128 itself provides that liability of the surety would be co-extensive with that of the principal debtor unless it is otherwise provided by the contract. It is permissible for the parties to agree...

...Appellant herein that the Guarantor/Appellant is the Principal Debtor jointly with the Borrower. Under Section 128 of the Indian Contract Act, 1872, the liability of 'Surety' towards a 'Creditor' is...128 of the Indian Contract Act, 1872 reads as follows: "128. Surety's liability.—The liability of the surety is co- extensive with that of the principal debtor...of 2021 had expressively discussed Section 126 of the Indian Contract Act, 1872 and the liability of the 'Principal Borrower' and 'Guarantor' and observed as under...