Section 21 : Equal liability of co-sureties

1) In case two or more persons have jointly or separately provided a joint guarantee for any loan or liability, and in case the debtor fails to repay the loan or meet the liability, the co-sureties shall repay the loan or meet the liability or the requirements of the contract on an equal basis, except when otherwise provided for in the contract.

2) In case the guarantee has been provided on a sector-wise basis while providing a joint guarantee under sub-section (1), a surety shall be required to meet only the liability for that sector for which he/she has provided the guarantee.