Banking · Indian Contract Act, 1872
A bank holds a Cash Credit facility secured by the Hypothecation of Inventory (Primary Security) and a Personal Guarantee (Collateral Security). If the bank, without the Surety's consent, loses or releases a substantial part of the hypothecated inventory, the Surety is discharged to the extent of the value of the security lost. Under the Indian Contract Act, 1872, this is governed by:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Section 145
- 2Section 139✓
- 3Section 137
- 4Section 134
Correct answer
Section 139
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