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august 1968

Supreme Court of India · 1968-08-08

BANK OF BIHAR LTD. vs DAMODAR PRASAD & ANR.

Citation / case number
SC 1965/281
Court
Supreme Court of India
Petitioner
BANK OF BIHAR LTD.
Respondent
DAMODAR PRASAD & ANR.
Author
R.S. BACHAWAT
Bench
R.S. BACHAWAT

Judgment text excerpt

The Supreme Court held that under Order XX Rule 11(1) of the Code of Civil Procedure, a creditor is not required to exhaust remedies against the principal debtor before enforcing a decree against the surety unless there are special equities. The Court set aside the High Court's direction that postponed enforcement against the surety, emphasizing that such directions must be clear and specific. The Court reaffirmed that the surety has a duty to pay the decretal amount and can seek reimbursement from the principal debtor thereafter, as per Section 140 of the Indian Contract Act.

BANK OF BIHAR LTD. vs DAMODAR PRASAD & ANR. · Niyam