Section 19 : Surety to substitute creditor

1) After the surety repays the loan to be repaid by the debtor or fulfils the liability to be fulfilled by the debtors under the contract, the surety shall substitute the creditor in regard to that loan or liability and may initiate legal action against the debtor like a creditor under this Act or prevailing law.

2) Notwithstanding anything contained elsewhere in this chapter, the total amount and interest due on that amount, or any other fee or amount payable on that, shall be paid by the debtors to the surety in consideration of the loan repaid or liability fulfilled by the surety on his behalf according to the contract relating to guarantee.

3) In case it becomes necessary to take legal action because of the failure of the debtor to pay the amount payable by him/her under sub-section (2), or in case it becomes necessary to incur any other expenses in consideration of the surety may have such expenses recovered from the debtor.