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'X' and 'Y' jointly take a loan from 'Z' with promise to repay the loan amount with interest within two…

Z may sue Y for the whole outstanding amount under Section 43. Each joint promisor can be compelled to perform the entire promise unless the contract provides otherwise; X’s…

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'X' and 'Y' jointly take a loan from 'Z' with promise to repay the loan amount with interest within two years. Soon after taking the loan 'X' is declared as an insolvent and remains insolvent till the date of repayment of loan. 'Y' also fails to repay the loan. 'X' on account of his status as insolvent enjoys immunity from legal proceedings. In these circumstances, under the Indian Contract Act, 1872:

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Correct answer B

Z may sue Y for the whole outstanding amount under Section 43. Each joint promisor can be compelled to perform the entire promise unless the contract provides otherwise; X’s insolvency does not restrict Z to recovering half from Y. Contribution between joint promisors is a separate matter.

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