Cheque Bounce & Debt Recovery Published & Fact-Checked 1 Sept 2026

What are the legal liabilities of a Loan Guarantor if the primary borrower defaults?

Under Section 128 of the Indian Contract Act, the liability of a surety/guarantor is co-extensive with that of the principal debtor. The lending bank can legally proceed against the guarantor's bank accounts, salaries, or properties without exhausting all remedies against the borrower first.

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