Guarantor recover money from loan borrower

The gurantor/surety after payment of debt of borrower is to step in shoes of  reditor and act like creditor.

Himachal Pradesh High Court

Anil Kumar And Ors. vs Central Bank Of India And Ors.

21 In Bank of Bihar Ltd. v. Dr. Damodar Prasad, AIR 1969 SC 297, the apex Court observed:-- "Under Section 128 of the Con tract Act, save as provided in the contract, the liability of the surety is co-extensive with that of the principal debtor. The surety thus becomes liable to pay the entire amount. His liability is immediate. It is not deferred until the creditor exhausts his remedies against the principal debtor. In the absence of some special equity the surety has no right to restrain an action against him by the creditor on the ground that the principal is solvent or that the creditor may have relief against principal in some other proceedings. It is the duty of the surety to pay the decretal amount.

On such payment he would be subrogated to the rights of the creditor under Section 140..

The security would become useless if rights      

 against the security could be so easily cut      

'down."