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<h1>Surety Discharged from Liability When Principal Debtor Released Under Contract or Creditor's Actions Under Section 134, Indian Contract Act.</h1> Under Section 134 of the Indian Contract Act, 1872, a surety is discharged from liability if the principal debtor is released through a contract with the creditor or due to any act or omission by the creditor that results in the discharge of the principal debtor. For example, if a principal debtor is released from debt obligations through a creditor agreement, the surety is no longer liable. Similarly, if the creditor's actions prevent the principal debtor from fulfilling contractual obligations, the surety is discharged from responsibility.