Industrial Finance Corporation Of ... vs Thletdc.An&Naonrosr.E; Spinning & ...

The Supreme Court interpreted Section 141 of the Indian Contract Act, affirming that a surety is entitled to all securities held by the creditor against the principal debtor. The Court held that if the creditor loses or parts with the security, the surety's liability is discharged to the extent of such loss. This principle aligns with established equity doctrines and prior rulings, including State of Madhya Pradesh v. Kaluram, which clarified the meaning of 'security' in this context.