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 ?
Explanation & Strategy
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Under the Indian Contract Act (S.146), when co-sureties guarantee the same debt, they share liability equally among themselves. If the principal debtor leaves part of the debt unpaid, the remaining co-sureties share the unpaid portion in EQUAL contributions — regardless of the amount each individually guaranteed.