Section 139 The Indian Contract Act, 1872
Section 139 of the Indian Contract Act, 1872 deals with the discharge of surety when the creditor does something that impairs the surety’s eventual remedy against the principal debtor.
📜 Section 139 – Discharge of Surety by Creditor’s Act or Omission Impairing Surety’s Eventual Remedy
"If the creditor does any act which is inconsistent with the rights of the surety, or omits to do any act which his duty to the surety requires him to do, and the eventual remedy of the surety himself against the principal debtor is thereby impaired, the surety is discharged."
🔍 Explanation:
If the creditor does something (or fails to do something) that harms the surety's ability to recover money from the principal debtor, the surety is released from liability.
✅ Key Elements:
The creditor must have done something inconsistent with the rights of the surety.
Or, the creditor fails to do something he was required to do for the benefit of the surety.
As a result, the surety’s ability to recover from the principal debtor is affected or impaired.
💡 Example:
A becomes surety for B’s loan from C. C, the creditor, fails to secure collateral from B, which could have been used by A (the surety) to recover money if B defaults. If B defaults and C claims money from A, A can claim discharge under Section 139 because C’s omission impaired A’s remedy.
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