Where any person has furnished security or given a guarantee—
(a) For the performance of any decree or any part thereof, or
(b) For the restitution of any property taken in execution of a decree, or
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(c) For the payment of any money, or for the fulfilment of any condition imposed on any person, under an order of the court in any suit or in any proceeding consequent thereon, the decree or order may be executed in the manner herein provided for the execution of decrees, namely;
(i) If he has rendered himself personally liable, against him to that extent;
(ii) If he has furnished any property as security, by sale of such property to the extent of the security;
(iii) If the case falls both under clauses (i) and (ii), then to the extent specified in those clauses, and such person shall be deemed to be a party within the meaning of section 47:
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Provided that such notice as the court in each case thinks sufficient has been given to the surety.
The provisions of the section have been amplified by the Amendment Act, 1976, so as to empower the court in execution of the decree or order to sell the property furnished as security by the surety, to the extent of the security.
A conjoint reading of clauses (a) and (i) of S. 145 to clearly indicate that when a person has undertaken as a guarantor or a surety for the due performance of a decree or any part thereof, to the extent of the undertaking or guarantee, the guarantor or the surety is personally liable for due performance of the liability of the judgment-debtor to the decree-holder and the latter is entitled to proceed against him in the manner laid down in S. 145.
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But when the decree-holder himself has compromised with the principal debtor and has discharged him from the liability to the performance of the decree, in law it must be a full satisfaction of the decree under S. 47 and the relevant rule in Order XXI, C.P.C. Full satisfaction recorded in that behalf relieves the guarantor or surety from the obligation with the decree-holder and the decree-holder cannot seek any further remedy against the surety.