Indian Contract Act, 1872 · Chapter VI: Of the Consequences of Breach of Contract · Of indemnity and guarantee
Section 128: Surety's liability
The liability of the surety is co-extensive with that of the principal debtor, unless it is otherwise provided by the contract.
Illustration
A guarantees to B the payment of a bill of exchange by C, the acceptor. The bill is dishonoured by C. A is liable, not only for the amount of the bill, but also for any interest and charges which may have become due on it.
Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 15 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.
Supreme Court judgments citing the section 128
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Brs Ventures Investments Ltd. v. Srei Infrastructure Finance Ltd. & Anr.
Whether the payment of Rs.38.87 crores to the financial creditor under the resolution plan of the corporate guarantor will extinguish the liability of the principal borrower/corporate debtor to pay the entire amount…
- Ajay Kumar Radheyshyam Goenka v. Tourism
- K. Paramasivam v. The Karur Vysya Bank Ltd. & Anr.
- Lalit Kumar Jain v. Union of India & Ors.
- Ghanashyam Mishra and Sons Private Limited Through the Authorized Signatory v. Edelweiss Asset Reconstruction Company Limited Through the Director & Ors.
- Laxmi Pat Surana v. Union Bank of India & Anr.
- Phoenix Arc Pvt. Ltd. v. Ketulbhai Ramubhai Patel
- Anuj Jain Interim Resolution Professional for Jaypee Infratech Limited v. Axis Bank Limited Etc. Etc.
- State Bank of India v. V. Ramakrishnan & Anr.
- Central Bank of India v. C. L. Vimla & Ors.
- Ram Kishun and Ors. v. State of U.P. and Ors.
- Karnataka State Financial Corporation v. N. Narasimahaiah and Ors.
- National Textile Corporation (Gujarat) v. State Bank of India and Ors.
- Syndicate Bank v. Channa Veerappa Beleri and Ors.
- Kailash Nath Agrawal and Ors. v. Pradeshya Indst. & Inv. Corp. of U.P. and Anr.
- I.C.D.S Ltd. v. Beena Shabeer and Anr.
- Industrial Finance Corporation of India Ltd. v. The Cannanore Spinning and Weaving Mills Ltd. and Anr.
- Selvarajan v. Meenakshi Ammal
- State Bank of India v. Indexport Registered and Ors.
- Maharashtra State Financial Corporation v. Jaycee Drugs and Pharmaceuticals Pvt. Ltd. and Ors.