Section 136 Indian Contract Act 1872
Section 136 of the Indian Contract Act 1872 is about Surety not discharged when agreement made with third person to give time to principal debtor. It is under CHAPTER VIII of the Act. CHAPTER VIII is titled OF INDEMNITY AND GUARANTEE.
Surety not discharged when agreement made with third person to give time to principal debtor
Where a contract to give time to the principal debtor is made by the creditor with a third person, and not with the principal debtor, the surety is not discharged.
C, the holder of an overdue bill of exchange drawn by A as surety for B, and accepted by B, contracts with M to give time to B. A is not discharged.
Section 135 Indian Contract Act 1872 (Discharge of surety when creditor compounds with, gives time to, or agrees not to sue, principal debtor)