Sections 136 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
After sections 133 to 135 list how a surety is discharged, sections 136 to 138 list three situations in which the surety is not discharged: a contract to give time made with a third person, mere forbearance to sue, and release of one of several co-sureties. For advice on how these rules affect your own guarantee, our legal consultation service is available.
Section 136: where a contract to give time to the principal debtor is made by the creditor with a third person, and not with the principal debtor, the surety is not discharged. Section 137: mere forbearance by the creditor to sue the principal debtor, or to enforce any other remedy against him, does not, in the absence of any provision in the guarantee to the contrary, discharge the surety. Section 138: where there are co-sureties, a release by the creditor of one does not discharge the others.
Where these sections fit
Sections 133 to 135 and 139 give grounds on which the surety is discharged. Sections 136 to 138 mark the limits of those rules. For the contrast, see section 135, which discharges the surety where the creditor promises time to the principal debtor.
Section 136: time given by contract with a third person
The text: "Where a contract to give time to the principal debtor is made by the creditor with a third person, and not with the principal debtor, the surety is not discharged."
The line is drawn by who the creditor contracts with. If the promise of time is made to the principal debtor, section 135 applies. If it is made to a third person, section 136 applies and the surety stays liable.
The Act's illustration. C, the holder of an overdue bill of exchange drawn by A as surety for B and accepted by B, contracts with M to give time to B. A is not discharged.
Section 137: forbearance to sue
The text: "Mere forbearance on the part of the creditor to sue the principal debtor or to enforce any other remedy against him does not, in the absence of any provision in the guarantee to the contrary, discharge the surety."
Three limbs:
- "Mere forbearance": holding back, without a contract promising it.
- "To sue ... or to enforce any other remedy": not only suits but other remedies against the debtor.
- "In the absence of any provision in the guarantee to the contrary": the guarantee itself may provide differently.
The Act's illustration. B owes C a debt guaranteed by A. The debt becomes payable. C does not sue B for a year after it became payable. A is not discharged from his suretyship.
Section 138: release of one co-surety
The text begins: "Where there are co-sureties, a release by the creditor of one of them does not discharge the others". In plain words the second half of the section says the release does not relieve the surety so released of his responsibility to the other sureties. The Act's footnote to this section points to section 44, the provision on a release of one of several joint promisors, which the footnote lists as a cross-reference.
The section has two effects:
- The other co-sureties remain liable to the creditor.
- The released surety remains responsible to the other sureties; the creditor's release does not wipe out that responsibility.
The rights of co-sureties among themselves are in sections 146 and 147; see sections 146 and 147.
Summary table
| Section | Situation | Surety discharged? |
|---|---|---|
| 135 | Creditor contracts with the principal debtor to give time, compound or not to sue | Yes, unless the surety assents |
| 136 | Creditor contracts with a third person to give time to the principal debtor | No |
| 137 | Creditor merely forbears to sue or to enforce a remedy | No, unless the guarantee provides otherwise |
| 138 | Creditor releases one of several co-sureties | Others not discharged; the released surety still answerable to the others |
A modern example of our own
Farhan borrows from a lender, and Gita and Harsh are co-sureties. The debt falls due and the lender does not sue for several months, and sends no promise to Farhan. Under section 137 that is mere forbearance and Gita and Harsh are not discharged unless their guarantee says otherwise.
Later the lender gives Harsh a written release. Under section 138 Gita is not discharged, and Harsh is not relieved of his responsibility to Gita as a co-surety.
In a separate case, the lender agrees with Farhan's parent company, not with Farhan, to wait three months. Section 136 says that a contract to give time made with a third person does not discharge the surety.
What can the parties change?
- Section 137 names its own opening: "in the absence of any provision in the guarantee to the contrary". A guarantee may provide differently.
- Sections 136 and 138 do not carry such words. The text is silent on whether the guarantee can alter them, so draft carefully and take advice.
Practical points
- A creditor who wants to hold the surety should not make a promise of time to the principal debtor; the safer course, on the text, is to obtain the surety's assent or rely on mere forbearance.
- Sureties should read the guarantee for any clause that deals with forbearance.
- Where there are several sureties, record who was released and when; the others remain bound.
Need help with a guarantee question?
Whether the surety stays liable after a delay, a promise of time or a release depends on who the creditor dealt with and what the guarantee says. Our legal consultation team can read your guarantee alongside sections 135 to 138 and explain the position. Bring the guarantee and the correspondence.
Key takeaways
- A contract giving time made with a third person does not discharge the surety (s.136).
- Mere forbearance to sue does not discharge the surety unless the guarantee provides otherwise (s.137).
- Release of one co-surety does not discharge the others, and does not relieve the released surety of his responsibility to them (s.138).
- The key line between sections 135 and 136 is whether the promise was made to the principal debtor or to a third person.
Read next
- Section 135: discharge of surety when creditor compounds or gives time
- Section 139: discharge of surety by creditor's act or omission
- Sections 146 and 147: co-sureties' contribution
Disclaimer: Based on the text of the Indian Contract Act, 1872 as consulted on 1 October 2026. Many questions under this Act turn on case law and on the wording of the particular contract, which this article does not cover. It is general information, not legal advice; check the official text and take advice before acting.