Indian Contract Act Section 128 — Surety’s liability
CHAPTER VIII OF INDEMNITY AND GUARANTEE
Commercial / Corporate
Summary
The liability of the surety is co-extensive with that of the principal debtor, unless it is otherwise provided by the contract. This means that, by default, the surety is responsible for the same amount and in the same manner as the principal debtor. However, the contract itself can set different terms for the surety’s liability, and if it does, those terms will apply instead.
Official Text
The liability of the surety is co- extensive with that of the principal debtor, unless it is otherwise provided by the contract. Illustration
Related Judgments
- LALIT KUMAR JAIN vs UNION OF INDIA & ORS — Supreme Court of India (2021)
- STATE BANK OF INDIA vs INDEXPORT REGISTERED AND ORS — Supreme Court of India (1992)
- BANK OF BIHAR LTD. vs DAMODAR PRASAD & ANR — Supreme Court of India (1968)
- CANARA BANK OVERSEAS BRANCH REP. BY SENIOR MANAGER vs ARCHEAN INDUSTRIES PRIVATE LIMITED AND ANOTHER — Supreme Court of India (2026)
- BRS VENTURES INVESTMENTS LTD. vs SREI INFRASTRUCTURE FINANCE LTD. & ANR — Supreme Court of India (2024)
