The INDIAN CONTRACT ACT, 1872

OF INDEMNITY AND GUARANTEE

Section 135: Discharge of surety when creditor compounds with, gives time to, or agrees not to sue, principal debtor.

A contract between the creditor and the principal debtor, by which the creditor makes a composition with, or promises to give time to, or not to sue, the principal debtor, discharges the surety, unless the surety assents to such contract.