About surity
DINAKARAN
(Querist) 08 December 2011
This query is : Resolved
Respected Experts,
My cousin brother working in PWD Govt.
He and his coliqe ( Co- worker) got society loan. they gave surity each other( My Cousin gave surity to his friend and his friend gave surity to my cousin)my cousin is re paying the loan amount regularly ( the loan amount deducted from his salary) but his friend is not coming to work since he got loan. Now the problem is the loan amount which my cousins's friend got is also deducted from my cousin's salary. Because he put surity signature to his friend. Please advice us how to deal this problem ?
Thanking You
Regards
J.Dinakaran
Cell : 9444151658
Mail : dina.advacate@gmail.com
ajay sethi
(Expert) 08 December 2011
if your cousinfriend is not paying the loan regularly ultimately the burden will fall upon you as surety . the society will file case against principal borrower ie your cousin and you .
request your cousin friend to repay loan install ments on time . raise the issue with his family . . the problem is society wont relieve you as surety if you make an application unless your friend gives another surety
Raj Kumar Makkad
(Expert) 08 December 2011
There is no solution at this moment except to prepare loanee to bear burden of his loan. Your cousin may adopt TIT FOR TAT but there is no guarantee of this policy to obtain the desired results because bank shall recover from the person from whom it can do so easily. Your cousin is easy target so both banks are teethe-ring him.
Your cousin had to think all pros and cons prior to becoming guarantor for his friend.
malipeddi jaggarao
(Expert) 09 December 2011
What I understand from the query is your cousin "x" is working in PWD Dept. They have a co-operative society which extends loans to its employees. I also presume that it is a registered co-op.society. Another employee "y" is the colleague of your cousin. Both of them availed society loan by giving cross-guarantee (surety) for each other. Now that "y" is not repaying the instalments and the society is deducting both instalments from "x". If my above presumptions are correct, the following ismy opinion:
a) whether "y" is getting any salary or not. As long as he gets salary, the society has to recover the "y" instalment from his salary only.
b) If he is not getting any salary, what is the reason?
c) The surety bond spells out the process of recovery. What does the surety bond say?
d) Generally such societies will wait for some time if they have confidence that they can recover the amount from the loanee, as he will come back to the employment. Even in case if he does not come back, they claim their amount out of terminal benefits. Such societies register themselves with their HR Department for direct recovery from the salaries. They also serve a notice on HR Dept. to deduct and pay the dues to the society from anything that is due to the employee, including the terminal benefits. Some societies without waiting for this process they pressurise the surety to pay back the amount. Your cousin can bring these alternatives before the society and seek some time. In the meanwhile he can exert pressure through the colleagues and family members on "y" to clear-off the loan.
Shonee Kapoor
(Expert) 09 December 2011
I agree with Mr. Jaggarao.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
Guest
(Expert) 09 December 2011
I also agree with Shri Jaggarao.
RAJU O.F.,
(Expert) 09 December 2011
If your friend is not reimbursing the money deducted from your salary towards his loan account, then you have to recover the same by filing suit against him.
vasant kulkarni
(Expert) 09 December 2011
YOU CAN APPROACH COOPERATIVE COURT WITH A PLEA THAT SOCIETY BE DIRECTED TO RECOVER THE INSTALLENTS FROM THE SALARY OF BORROWER AND RECOVERY FROM MY SALARY BE STAYED.OR YOU CAN RAISE FURTHER LOAN SO THAT DEDUCTION FROM YOUR SALARY WILL NOT BE POSSIBLE.
