Question

Under the Indian Contract Act, 1872, what happens if the principal debtor leaves part of the debt unpaid and there are two or more co-sureties?

• A. The creditor alone bears the unpaid portion of the debt.
• B. The debtor’s family becomes liable for the unpaid amount.
• C. The co-sureties share the unpaid portion in equal contribution.
• D. The entire unpaid portion is to be paid by the surety first approached.

Hint:

Under Indian Contract Law, co-sureties always contribute equally unless a contract specifies a different arrangement.

Answer 1

The Correct Option is C

Step 1: Understanding co-suretyship.
Where multiple sureties guarantee the same debt, all of them are jointly and severally liable to the creditor.
Step 2: What happens after one surety pays more?
Section 146 of the Indian Contract Act states that co-sureties “in the absence of a contract to the contrary” must share the liability equally.
Step 3: Applying the rule to the question.
If the debtor leaves a portion unpaid, the co-sureties have to proportionately and equally bear the liability among themselves.