TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether a decree-holder can be directed to exhaust remedies against the principal debtor before enforcing the decree against the surety.
Analysis: The liability of a surety under the contract was immediate upon demand, and by virtue of the rule of coextensive liability the surety became liable for the whole debt. Before payment, the surety had no right to dictate the order in which the creditor should proceed. A creditor is not required to exhaust remedies against the principal debtor before suing or executing against the surety, and the solvency of the principal debtor does not justify postponement of enforcement against the surety. Order XX Rule 11(1) of the Code of Civil Procedure did not authorise so vague and extraordinary a restriction, and Section 151 could not be used to impose a condition contrary to the legal incidents of a guarantee. On payment, the surety's remedy lay in subrogation against the principal debtor.
Conclusion: The direction restraining execution against the surety until the creditor exhausted remedies against the principal debtor was not sustainable.
Final Conclusion: The decree-holder was entitled to proceed against the surety without first exhausting remedies against the principal debtor, and the impugned restriction was set aside.
Ratio Decidendi: A creditor need not exhaust remedies against the principal debtor before enforcing a decree against the surety, because the surety's liability is coextensive and immediately enforceable subject only to the contract of guarantee.
TaxTMI 
