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Report No. 3

98. Article s 81-83.-

Then we have a group of Articles relating to contribution. Article 81 is for a suit by a surety against the principal debtor and time begins to run when the surety pays the creditor. Article 82 is for a suit by a surety against a co-surety and time runs from the date when the surety pays anything in excess of his own share. In these two cases the event on the happening of which the cause of action arises under the substantive law coincides with the time from which the period begins to run. Under section 145 of the Contract Act the law implies an obligation by the principal debtor and a co-surety to indemnify the surety and liability arises by reason of an implied obligation. Sections 146 and 147 of the Contract Act provide for payment of the amount by sureties. Article 83 is for suits on any other contract to indemnity and the starting point of limitation, as also of the accrual of the cause of action, under the substantive law, is when the plaintiff is actually indemnified.

Limitation Act, 1908 Back

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