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        Indian Laws

        Section 135 - Discharge of surety when creditor compounds with, gives time to, or agrees not to sue, principal debtor

        Indian Contract Act, 1872
        Chapter VIII
        OF INDEMNITY AND GUARANTEE

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        Surety discharge upon creditor composition or forbearance unless the surety has given assent to the agreement. A contract by which a creditor accepts a composition with, promises to give time to, or agrees not to sue the principal debtor operates to discharge the surety from liability on the guarantee unless the surety expressly assents to that arrangement.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              Surety discharge upon creditor composition or forbearance unless the surety has given assent to the agreement.

                              A contract by which a creditor accepts a composition with, promises to give time to, or agrees not to sue the principal debtor operates to discharge the surety from liability on the guarantee unless the surety expressly assents to that arrangement.


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