https://www.taxtmi.com/caselaws?id=112383 Payment by a surety of the debt guaranteed vests in the surety, under sections 140 and 141 of the Indian Contract Act, 1872, all rights of the creditor against the principal debtor, including enforcement of securities and other means of payment. That subrogation arises by operation of law and is not a fresh charge created by the company requiring registration under section 125 of the Companies Act, 1956. The surety is therefore substituted in place of the secured creditors after discharge of the debt and may be treated as a secured creditor in the company's liquidation. en-us Thu, 20 Jul 2006 00:00:00 +0530 Fri, 27 Apr 2012 18:43:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=112383 Payment by a surety of the debt guaranteed vests in the surety, under sections 140 and 141 of the Indian Contract Act, 1872, all rights of the creditor against the principal debtor, including enforcement of securities and other means of payment. That subrogation arises by operation of law and is not a fresh charge created by the company requiring registration under section 125 of the Companies Act, 1956. The surety is therefore substituted in place of the secured creditors after discharge of the debt and may be treated as a secured creditor in the company's liquidation. Case-Laws Companies Law Thu, 20 Jul 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=112383