Suretyship
Full Text
Suretyship.—When the holder of an accepted bill of exchange enters into any contract with the acceptor which, under section 134 or 135 of the Indian Contract Act, 1872 (9 of 1872), would discharge the other parties, the holder may expressly reserve his right to charge the other parties, and in such case they are not discharged.
Plain English Summary
Allows a bill's holder to contract with the acceptor without discharging other parties (sureties) by expressly reserving the right to hold those other parties liable.
Key Legal Elements
- Applies when the holder of an accepted bill enters into a contract with the acceptor
- The contract would normally discharge other parties under Section 134 or 135 of the Indian Contract Act
- The holder can prevent this discharge by expressly reserving the right to charge the other parties
Practical Note
Links NI Act with Contract Act surety principles. Usually, compounding or giving time to the principal debtor (acceptor) discharges sureties (endorsers). Under Section 39, the holder can prevent this discharge of sureties by making an express reservation of rights during the agreement.
हिंदी पाठ
प्रतिभूत्व (जमानत)।—जब किसी स्वीकृत विनिमय-पत्र का धारक स्वीकर्ता के साथ कोई ऐसा अनुबंध करता है जो भारतीय अनुबंध अधिनियम, 1872 (1872 का 9) की धारा 134 या 135 के तहत अन्य पक्षों को दायित्व से मुक्त कर देता, तो धारक अन्य पक्षों पर दायित्व डालने के अपने अधिकार को स्पष्ट रूप से सुरक्षित रख सकता है, और ऐसे मामले में वे दायित्व से मुक्त नहीं होते हैं।