manish 14 January 2016

Borrower missing and surety for loan are fixed

hello everyone

m new in this forum,saw so many different queries solved so thought of putting mine too.

I am a surety for a person of his personal loan in the cooperative bank which is an employee bank. This person took 4 loans from the same bank and now absconding.He is been terminated from the job for not showing up,he used to work with the PSU company and i am the co-worker in the same company.

Now since other sureties for his loans has taken the housing loan from the same bank and their whole salary component goes for their own EMI so there is no deduction from them and since i dont have any loan with the bank they recover his EMI from me and directly deducting it from my salary showing bank dues.

My question is- for any bank, before they start the recovery from the surety, shouldn't they first try to catch hold of borrower itself or file a complaint against him?

is their any initial steps against the borrower they( bank) should initiate first rather than simply recovering the money from surety?

Is there any kind of notice to be issued by the bank to the surety before they start deduction?

Please advice if i can lodge an FIR against the borrower for cheating.. or against the bank..

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5 Replies

SAINATH DEVALLA (LEGAL CONSULTANT) 14 January 2016

UR liability with the bank starts once the borrower defaults repayment. Hence legally U have no right to question the action of the bank.

Laxmi Kant Joshi (Advocate ) 14 January 2016

As and when the borrower defaults to deposit the banks emi, your liablities starts from there, either fetch him and tell him to deposit his emis or you deposit his emi's .

manish 14 January 2016

Ok..thanks for the reply...but then bank should at least do some thing to find him..like to use their recovery agent or lodge a complain to police for defaulting...can I lodge an FIR against the defaulter?

manish 19 January 2016

Can I lodge a missing person FIR against the borrower who is absconding now?

H.JanakiManohar Rao (lawyer) 01 June 2016

Bank will not take any action on the barrower.

Bank will not take any action on the borrower.But there is a chance for u to do that .First u pay all the dues to the bank and obtain a receipt that u cleared all the dues on behalf of ur friend and then file a case against ur friend to recover the amount.U can file a criminal case against ur friend.That is the only remedy for u.