Section 137 Indian Contract Act 1872
Section 137 of the Indian Contract Act 1872 is about Creditor’s forbearance to sue does not discharge surety. It is under CHAPTER VIII of the Act. CHAPTER VIII is titled OF INDEMNITY AND GUARANTEE.
Creditor’s forbearance to sue does not discharge surety
Mere forbearance on the part of the creditor to sue the principal debtor or to enforce any other remedy against him does not, in the absence of any provision in the guarantee to the contrary, discharge the surety.
B owes to C a debt guaranteed by A. The debt becomes payable. C does not sue B for a year after the debt has become payable. A is not discharged from his suretyship.
Section 136 Indian Contract Act 1872 (Surety not discharged when agreement made with third person to give time to principal debtor)