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Section 44: Effect of release of one joint promisor

Indian Contract Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1872
Section 43 All 266 Sections of Indian Contract Act Section 45

Legal Commentary & Landmark Judgments: Section 44

Section 44 of the Indian Contract Act, 1872 departs from English common law by providing that where two or more persons are joint promisors, a release of one of them by the promisee does not discharge the other joint promisors; neither does it free the joint promisor so released from responsibility to contribute to the other joint promisors.

  • Survival of Claims against Non-Released Co-Promisors: The release of one joint debtor by the creditor does not operate as a release of all; the promisee retains the full statutory right to pursue the remaining co-promisors for the debt.
  • Preservation of Internal Contribution Rights: The released joint promisor is not freed from his statutory duty to contribute rateably to co-promisors under Section 43 if they are compelled to discharge more than their share.
  • Repudiation of Common Law Unity Rule: Abrogates the archaic common law rule in King v. Hoare where the release of one joint contractor extinguished the single joint cause of action against all.
Key Landmark Precedents:
  • Kirtee Chunder Mitter v. Struthers (1878) ILR 4 Cal 336: The Calcutta High Court held that Section 44 expressly repudiates the English doctrine, ensuring that an agreement releasing one joint debtor leaves the creditor free to sue the other joint debtors.
  • State Bank of India v. V. Ramakrishnan (2018) 17 SCC 394: The Supreme Court recognized the independent survival of creditor claims against co-obligors and guarantors notwithstanding settlements made with primary or co-debtors, harmonizing with Section 44.
Courtroom Practice & Strategic Litigation Guidance:

When structuring a one-time settlement (OTS) or partial release with one co-borrower or guarantor, insert explicit clauses citing Section 44 to preserve enforcement remedies against non-settling co-promisors. Conversely, advise the settling co-promisor that a release from the creditor does not insulate them from third-party contribution claims brought by non-settling co-debtors under Section 43.

Section 43 All 266 Sections of Indian Contract Act Section 45