ICA · VIII — OF INDEMNITY AND GUARANTEE

Section 137. Creditor's forbearance to sue does not discharge surety

In force · As amended up to 2026-08

137. Creditor's forbearance to sue does not discharge surety .—Mere forbearance on the part of the creditor to sue the principal debtor or to enforce any other remedy against him does not, in the absence of any provision in the guarantee to the contrary, discharge the surety. Illustration B owes to C a debt guaranteed by A. The debt becomes payable. C does not sue B for a year after the debt has become payable. A is not discharged from his suretyship. 138.Release of one co-surety does not discharge others .—Where there are co-sureties, a release by the creditor of one of them does not discharge the others; neither does it free the surety so released from his responsibility to the other sureties[1] .

Source: India Code