https://www.taxtmi.com/caselaws?id=459157 Sections 137 and 141 of the Indian Contract Act distinguish mere creditor forbearance from an affirmative loss, release or parting with security. A surety retains the benefit of securities held by the creditor, but passive failure to sue, seize or realise hypothecated property does not itself amount to loss of security. Depreciation of a hypothecated truck resulting from the creditor's inaction is treated as passive negligence, rather than an act discharging sureties. A transferee of the debt may claim the benefit of the security. en-us Mon, 05 Jul 1976 00:00:00 +0530 Tue, 03 Dec 2024 10:19:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=459157 Sections 137 and 141 of the Indian Contract Act distinguish mere creditor forbearance from an affirmative loss, release or parting with security. A surety retains the benefit of securities held by the creditor, but passive failure to sue, seize or realise hypothecated property does not itself amount to loss of security. Depreciation of a hypothecated truck resulting from the creditor's inaction is treated as passive negligence, rather than an act discharging sureties. A transferee of the debt may claim the benefit of the security. Case-Laws Indian Laws Mon, 05 Jul 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=459157