Surety bond liability limits tax recovery to the amount expressly undertaken, not the full arrears of the defaulting assessee.

Recovery against sureties under a bond is confined to the contractual liability they expressly undertook. Where the bond authorises recovery only up to a specified secured sum, tax arrears cannot be enforced against the sureties beyond that limit, even if the defaulting assessee remains liable for the balance from her own assets. The surety may be proceeded against, but only within the amount covered by the bond, and any excess recovery must be pursued against the principal defaulter.

---

---

Issues: Whether recovery proceedings against the petitioners, as sureties under a bond, could be sustained for the entire tax arrears of the defaulting assessee, or were confined to the amount covered by the bond.

Analysis: The petitioners had executed a surety bond undertaking liability up to a specified sum. The bond authorised recovery from the sureties only to the extent of the amount secured under it. A surety could therefore be proceeded against, but the recovery could not exceed the contractual limit undertaken in the bond. Liability beyond that amount remained recoverable from the defaulting assessee or her property.

Conclusion: The recovery against the petitioners was upheld only up to Rs. 1,10,000 and was otherwise restricted to the amount covered by the surety bond.

---