CASE- COMMENTARY "BANK OF BIHAR LIMITED V. DHARMDAS GHOSH"
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Abstract
The case deals with the contract of guarantee and specifically with the rights of the creditor and surety and the liabilities of the surety with regard to creditor in this case the learned trial court of Patna has passed such a decree which has gave the right to surety to file the injunction petition before the court and this judgment is contradictory to the provisions of the Indian contract act, 1872 and Civil procedure code, 1908. The main question arise about the“coextensiveness” and “Joint and several” nature of the contract of guarantee. The Surety is always jointly and severally work with the principal debtor, the surety doesn’t have any different liability or right other than Principal debtor although the surety somewhat enjoy the reliability with regard to the difference in the type of contract they get indulged into, sometimes the Surety has their liability for the limited amount of money not of the whole amount and for the creditor it was provisionally stated that if the principal debtor got defaulted the creditor may enforce his remedies from the principal debtor or by the surety it was a discretion of the Creditor.
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