Chapter VIII - Of Indemnity and Guarantee
Section 144
Section 144: Condition that another co-surety joins
Where a guarantee is conditional on another co-surety joining before it is acted on, failure of that person to join makes it invalid.
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Need advice on Section 144?
This article is for general information. Refer to the Indian Contract Act, 1872 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
Where a person gives a guarantee upon a contract that the creditor shall not act upon it until another person has joined in it as co-surety, the guarantee is not valid if that other person does not join.
Rule and business relevance
The condition is part of the contract on which the guarantee is given. Evidence of that condition is therefore crucial when a creditor asserts that the guarantee could be acted on immediately.
Limits and related provisions
A mere expectation that someone else might also provide security is not automatically the contractual condition described here. Read the agreed terms.
Hypothetical business example
Hypothetical example: A guarantor signs on the express condition that the creditor will not act until a named co-surety joins. That person never joins; the creditor must consider section 144.
Practical decision flow
Locate the condition requiring another co-surety’s participation.
Check whether it restricts the creditor from acting until that event.
Verify whether the co-surety actually joined as required.
Check the applicable legal framework
This guide explains the central provision. Applicable State amendments, the agreement, transaction date and other governing laws can affect its application. Check the current legal framework before relying on it for a commercial decision.
Practical checklist
Do
- Locate the condition requiring another co-surety’s participation.
- Check whether it restricts the creditor from acting until that event.
- Verify whether the co-surety actually joined as required.
Avoid
- A mere expectation that someone else might also provide security is not automatically the contractual condition described here. Read the agreed terms.
Glossary
- Conditional guarantee
- An undertaking dependent on the specified contractual event.
- Joining as co-surety
- Becoming a co-surety as required by the agreed condition.
Frequently asked questions
Is an informal hope of another guarantor enough?
The section requires the described contractual condition, so the evidence and wording matter.
What if the required person never joins?
The guarantee is not valid under the stated conditions.
What restriction on the creditor is relevant?
The agreement that the creditor shall not act on the guarantee until the other co-surety joins.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026