When a surety pays off the debt of the principal debtor, the surety steps into the shoes of the creditor. This right is known as:

CS CSEET · Business Laws and Management · PYQS · June 2026
When a surety pays off the debt of the principal debtor, the surety steps into the shoes of the creditor. This right is known as:
(A) Right of Lien
(B) Right of Subrogation
(C) Right of Contribution
(D) Right of Set-off

Answer & Explanation:

Correct Answer: Option (B)

Correct answer: (B) Right of Subrogation.

Topics: Indian Contract Act, 1872

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