Section 146 The Indian Contract Act, 1872
Section 146 – The Indian Contract Act, 1872
📘 Title: Co-sureties liable to contribute equally
🔹 Bare Act Language:
"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 debtor."
🔍 Explanation:
This section applies when there are multiple sureties (co-sureties) for the same debt or obligation. Even if:
They signed different contracts,
They were not aware of each other's guarantee,
➡️ They are still equally liable (unless there's a different agreement among them).
✅ Illustration:
A, B, and C are co-sureties for ₹30,000 lent to D.
D fails to pay.
A ends up paying the whole ₹30,000.
👉 A can recover ₹10,000 from B and ₹10,000 from C (i.e., equal contribution).
📌 Key Points:
Applies to co-sureties, whether jointly or severally bound.
Liability is equal, unless otherwise agreed.
Ensures fairness among co-sureties when one pays more than their share.
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