Under the Negotiable Instruments Act, 1881, an indorser is discharged when the holder:

Section 40 discharges the indorser where the holder, "without the consent of the indorser, destroys or impairs the indorser's remedy against a prior party". If the indorser consents, as where time is given to the maker with his agreement, he is not discharged, and suing the maker first or negotiating the instrument impairs nothing.