AMAR CHAND versus BHANO AND ANR.

AMAR CHAND versus BHANO AND ANR.

When the decree-holder enters into a compromise with the principal judgement debtor and satisfaction is recorded without reference to the surety, the surety is deemed discharged from his obligation, and the decree-holder cannot proceed against the surety.

Parties
Appellant: Amar Chand; Respondent: Bhano; Principal Judgement Debtor: Dia Singh
Jurisdiction
India
Judgment Date
01 December 1994
Procedural Posture
Civil Appeal / Appeal From Punjab and Haryana High Court, C.r. No. 3040 of 1989
Outcome
Appeal allowed.
Legal Topics
Suretyship, Execution of Decree, Compromise Decree
Civil Procedure Suretyship Execution of Decree Compromise Decree

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Parties

Amar Chand

Appellant

Bhano

Respondent

Dia Singh

Principal Judgement Debtor

Procedural Posture

Civil Appeal / Appeal From Punjab and Haryana High Court, C.r. No. 3040 of 1989

Legal Issues

  1. 1 Whether, after a compromise between the decree-holder and principal judgement debtor without reference to the surety, the surety remains liable for the sum including mesne profits.

Ratio Decidendi

When the decree-holder enters into a compromise with the principal judgement debtor and satisfaction is recorded without reference to the surety, the surety is deemed discharged from his obligation, and the decree-holder cannot proceed against the surety.

Court Disposition

Appeal allowed.

Orders

  • Execution petition shall stand closed as full satisfaction is deemed to have been recorded.
  • No costs.