TITLE. Repealed · CHAPTERVIII OF INDEMNITY AND GUARANTEE

Section 146: Co-sureties liable to contribute equally

Where two or more persons are co-sureties for the same debt or duty, either jointly or severally, and whether under the same or different contracts, and whether with or without the knowledge of each other, the co-sureties, in the absence of any contract to the contrary, are liable, as between themselves, to pay each an equal share of the whole debt, or of that part of it which remains unpaid by the principal debtor¹.

Illustrations

(a)A, B and C are sureties to D for the sum of 3,000 rupees lent to E. E makes default in payment. A, B and C are liable, as between themselves, to pay 1,000 rupees each.

(b)A, B and C are sureties to D for the sum of 1,000 rupees lent to E, and there is a contract between A, B and C that A is to be responsible to the extent of one-quarter, B to the extent of one- quarter, and C to the extent of one-half. E makes default in payment. As between the sureties, A is liable to pay 250 rupees, B 250 rupees, and C 500 rupees.

Footnotes in the official text

1.See s. 43, supra.

Questions on this section

1 question in 6 of our papers cite Section 146. Try these from the free papers:

1. Consider the following statements under Section 146 of the Indian Contract Act, 1872: 1. Co-sureties for the same debt are liable, as between themselves, to pay equal shares even if they became sureties under different contracts. 2. The rule of equal contribution applies only where the co-sureties knew of each other when they gave their guarantees. 3. Co-sureties may, by a contract among themselves, agree to bear unequal shares of the debt. Which of the statements given above is/are correct?

Practise questions on Contract Law