https://www.taxtmi.com/caselaws?id=288340 A surety's liability under Section 128 of the Indian Contract Act is co-extensive with the principal debtor's liability unless the guarantee contract provides otherwise, so a creditor need not first exhaust remedies against the principal debtor. Where the guarantee deeds made the guarantors liable for the whole amount due on default, and did not exclude the ordinary operation of Section 128, the statutory power under Section 29 of the Orissa State Financial Corporation Act could be invoked directly against the guarantors' mortgaged properties. The Corporation was therefore entitled to proceed against the guarantors without first proceeding against the principal debtor, and the challenge failed. en-us Fri, 03 Apr 1992 00:00:00 +0530 Tue, 02 Jun 2020 09:49:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=288340 A surety's liability under Section 128 of the Indian Contract Act is co-extensive with the principal debtor's liability unless the guarantee contract provides otherwise, so a creditor need not first exhaust remedies against the principal debtor. Where the guarantee deeds made the guarantors liable for the whole amount due on default, and did not exclude the ordinary operation of Section 128, the statutory power under Section 29 of the Orissa State Financial Corporation Act could be invoked directly against the guarantors' mortgaged properties. The Corporation was therefore entitled to proceed against the guarantors without first proceeding against the principal debtor, and the challenge failed. Case-Laws Companies Law Fri, 03 Apr 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=288340