No Hierarchy of Remedies – Revisiting Section 128, ICA 1872: A Case Comment on Bank of Bihar v Damodar Prasad

This judgment reinforces the principle that the liability of the surety is equal and immediate, not secondary or conditional upon creditor’s actions against the debtor. Readers should take away that a surety cannot escape liability by insisting that the creditor must first proceed against the principal debtor, as such a view would defeat the very purpose of the contract of guarantee, which is to protect the creditor against loss from default. This case also affirms the surety’s right of subrogation, ensuring that their interests are not left unprotected once they fulfil their obligation