Contract act 134 to 140
Section 134-----discharge of surety by release of discharge of principal debtor----- The surety is discharged by any contract between the creditor and principal debtor By which the principal debtor is released or by any act or omission of creditor The legal consequences of which is the discharge of the principal debt 1. Mahanth Singh v. U Ba Yi, AIR 1939 PC 110 Principle: Mere expiry of the limitation period does not automatically discharge the surety under Section 134 . The Privy Council distinguished a debt becoming unenforceable because of a procedural limitation from a substantive discharge of the principal debtor. Easy facts: The creditor failed to sue within the limitation period. The question was whether the surety was consequently discharged. Held: The surety was not discharged merely because the remedy against the principal debtor became time-barred 2. Hazari Lal v. Chunni Lal, ILR (1886) 8 All 256 This is an important illustration of the...