Enforcement of liability of surety
Full Text
Where any person has furnished security or given a guarantee—
(a) for the performance of any decree or any part thereof, or
(b) for the restitution of any property taken in execution of a decree, or
(c) for the payment of any money, or for the fulfilment of any condition imposed on any person, under an order of the Court in any suit or in any proceeding consequent thereon,
the decree or order may be executed in the manner therein provided for the execution of decrees, namely:—
(i) if he has rendered himself personally liable, against him to that extent;
(ii) if he has furnished any property as security, by sale of such property to the extent of the security;
(iii) if the case falls both under clauses (i) and (ii) then to the extent specified in those clauses,
and such person shall be deemed to be a party within the meaning of section 47:
Provided that such notice as the Court in each case thinks sufficient has been given to the surety.
Plain English Summary
Section 145 enables decree-holders to enforce the liability of a surety—whether personal or secured against property—directly in decree execution proceedings without instituting a separate suit, treating the surety as a deemed party under Section 47, subject to mandatory prior notice.
Key Legal Elements
- Surety Obligations Covered: Guarantees given for decree performance, property restitution, monetary deposits, or compliance with interlocutory conditions.
- Summary Execution Mechanism: Direct execution against the surety as if against a judgment-debtor, dispensing with independent recovery suits.
- Extent of Enforcement: Personal liability against the surety's person/assets, or sale of specifically encumbered security property, or both.
- Deemed Party under Section 47: Bestows party status on the surety, requiring all objections and disputes to be determined by the executing court.
- Mandatory Prior Notice (Proviso): Natural justice requirement obligating the court to issue prior notice to the surety before executing against him.
Punishment
Execution against surety personally or via sale of pledged security property; deemed party under Section 47.
Practical Note
Summary Enforcement Against Sureties (Order XLI Rule 5 & Order XXXVIII Interplay): 1. Elimination of Separate Suits: Prior to Section 145, creditors had to file independent suits on surety bonds. Section 145 streamlines recovery: whenever a third party stands surety (e.g. for stay of execution under Order XLI Rule 5, or for release of attached goods under Order XXXVIII Rule 5, or receiver bonds under Order XL), the decree-holder simply executes the primary decree directly against the surety. 2. Mandatory Notice is Jurisdictional: The proviso requires prior notice to the surety. Execution levied against a surety without issuing a show-cause notice under Order XXI Rule 22 / Section 145 is void for violation of statutory natural justice. 3. Status as Deemed Party under Section 47: Because the surety is deemed a party to the suit, all questions relating to the execution, discharge, or satisfaction of the surety bond must be decided by the executing court under Section 47; a separate suit by or against the surety is barred. 4. Discharge of Surety (Section 133 to 139 Contract Act): Principles of the Indian Contract Act apply; if the decree-holder grants time or enters into a compromise with the judgment-debtor without the surety's consent, the surety is discharged from liability.
हिंदी पाठ
जहां किसी व्यक्ति ने प्रतिभूति दी है या प्रत्याभूति (गारंटी) दी है—
(क) किसी डिक्री या उसके किसी भाग के पालन के लिए, अथवा
(ख) किसी डिक्री के निष्पादन में ली गई किसी संपत्ति के प्रत्यास्थापन (Restitution) के लिए, अथवा
(ग) किसी वाद में या उससे पारिणामिक किसी कार्यवाही में न्यायालय के आदेश के अधीन किसी धन के संदाय के लिए अथवा किसी व्यक्ति पर अधिरोपित किसी शर्त की पूर्ति के लिए,
वहां उस डिक्री या आदेश का निष्पादन डिक्रियों के निष्पादन के लिए उपबंधित रीति से किया जा सकेगा, अर्थात्:—
(i) यदि उसने स्वयं को व्यक्तिगत रूप से दायी बनाया है, तो उस सीमा तक उसके विरुद्ध;
(ii) यदि उसने प्रतिभूति के रूप में कोई संपत्ति प्रस्तुत की है, तो प्रतिभूति की सीमा तक ऐसी संपत्ति के विक्रय द्वारा;
(iii) यदि मामला खंड (i) और (ii) दोनों के अंतर्गत आता है, तो उन खंडों में विनिर्दिष्ट सीमा तक,
और ऐसा व्यक्ति धारा 47 के अर्थ के अंतर्गत एक पक्षकार समझा जाएगा (Deemed to be a party):
परन्तु यह तब जब कि प्रतिभू (Surety) को ऐसी सूचना दे दी गई हो जैसी न्यायालय प्रत्येक मामले में पर्याप्त समझे।