Indian Contract Act Section 146 — Co-sureties liable to contribute equally

CHAPTER VIII OF INDEMNITY AND GUARANTEE

Commercial / Corporate

Summary

When two or more people act as co-sureties for the same debt or duty, they are each responsible, as between themselves, to pay an equal share of the whole debt, or of the part that the main debtor has not paid. This applies whether the co-sureties are bound jointly or separately, whether they signed the same or different contracts, and whether or not they knew about each other. This equal sharing applies only if there is no agreement among them stating otherwise.

Official Text

Where two or more persons are co-sureties for the same debt or duty, either jointly or severally, and whether under the same or different contracts, and whether with or without the knowledge of each other, the co-sureties, in the absence of any contract to the contrary, are liable, as between themselves, to pay each an equal share of the whole debt, or of that part of it which remains unpaid by the principal debtor1. Illustrations