Banking laws

Ritika singh (Querist) 25 March 2013 This query is : Resolved
can a bank appropriate money in a fixed deposit account of a guarantor towards a defaulting loan account of the principal debtor. can the same be adjusted without informing the same ??......is there an express contract necessary for the same.???

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Guest (Expert) 25 March 2013
You may better see the contents of agreement with the guarantor. If provisions are there, the bank becomes free to appropriate money out of the guarantor's account on failure of the principal debtor to repay the dues. If no provision is there, you may challenge the action of the bank in a court of law.