What are the Rights of Surety against the Co-Sureties?


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1)    All the sureties shall bear equally, the loss caused by the insolvency of the principal debtor. If one of them bears the entire loss in the first instance he can claim contribution from other co-sureties.

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2)    Where the co-sureties agreed to become liable in different sums, they should contribute, according to English Law, proportionately.

Illustration: A, B and C have agreed to become liable for Rs. 10,000, 20,000 and 40,000 respectively, as sureties for D’s liability. D’s indebtedness was Rs. 30,000. A,B and C would contribute in the ratio of 1 : 2 : 4. But according to Indian Law they shall bear such loss equally but not exceeding the sums which they have agreed to pay. So, A, B and C will have to pay Rs. 10,000 each.

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