Legal action against guarantor

Syed Faisal (Querist) 05 March 2016 This query is : Resolved
Sir my father is school teacher, my uncle have cheats my father actually he taken a loan where my father is gurentor , he mortgage a house to become gurentor and now my uncle become defaulter he don't have any sources to pay to the bank, even bank have issues two different loan on single document, bank is cooperative bank in Maharashtra please till what are limition of bank taking action against gurentor.

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Sudhir Kumar, Advocate (Expert) 06 March 2016
query is by and large vague. it does not specify whether guarantee was for one loan or for both, whose house is mortgaged, how uncle cheated father.

you have not specified as to how old is the loan and how old is the default.

prima-facie your father appears liable for payment and entitled to title of the mortgaged property.

Rajendra K Goyal (Expert) 06 March 2016
Guarantor is liable to pay if borrower defaults.

Advocate Bhartesh goyal (Expert) 06 March 2016
Guarantor is equally liable with borrower to pay the loan amount along with interest in case default in payment of loan .

R.K Nanda (Expert) 06 March 2016
nothing to add more.

Syed Faisal (Querist) 06 March 2016
Thanks for your response.

Syed Faisal (Querist) 06 March 2016

Mr. X retired school teacher he is retired in 2014 , in 2013 Mr. Y started a business of transport of local city buses with approval of local municipality with a 5 buses and after 6 month later in November he brought again 8 buses , where Mr. Y don’t specify about loan and put family pressure on Mr. X to sign a document as a guarantor , even the bank have not briefly explain a legal binding of guarantor, even the family and Mr. Y told to Mr. X it is just formality to take a loan, since Mr. X is innocent in banking they silently took house of Mr. X as mortgage property as a guarantor, neither bank or borrower explain Mr. X what kind of loan are taking and how much loan they are taking neither they give document to read , now Mr. Y became defaulter and bank start issuing notice to Mr. X in that they showing 2 different loan but Mr. X sing a document only for one even PTR (encumbrances certificate) showing loan for two different amount where Mr. X sing only one bank still not made bankrupt or seize the primary security.
Note
1) There are 2 more guarantors apart from Mr X.
2) Note bank is Cooperative bank In Maharashtra.
3) Mr.X and and Mr.Y are real brother

Please tell me what are legal action and limitation against Mr. X if loan have primary security.
What is the possibility For Mr. X to fight or protect his house since he don't have another house.

J K Agrawal (Expert) 06 March 2016
The answer is the same at stated by experts already.
It is not a valid defense with X that he is having only one house.
It also not a valid defense that there are other guarantors also.
Mr X may be having other defenses as stated in your detail query but these can be opined by looking at entire documents. This Forum can suggest some general guidelines.

Sudhir Kumar, Advocate (Expert) 07 March 2016
Mr. X retired school teacher he is retired in 2014 , in 2013 Mr. Y started a business of transport of local city buses with approval of local municipality with a 5 buses and after 6 month later in November he brought again 8 buses , where Mr. Y don’t specify about loan and put family pressure on Mr. X to sign a document as a guarantor ,

SO HE SIGNED VOLUNARILY THERE WAS NO PRESSURE ON HIM.

even the bank have not briefly explain a legal binding of guarantor,

THEY NEED NOT EXPLAIN.HE SHOULD HAVE KNOWN WHAT HE IS SIGNING.

even the family and Mr. Y told to Mr. X it is just formality to take a loan,

NOW IT IS ALSO JUST AFORMALITY THAT BENK WILL REOVER FROM HIM.

since Mr. X is innocent in banking they silently took house of Mr. X as mortgage property as a guarantor,

HOW CAN THEY TAKE SILENTLY. HE HIMSELF SIGNED MORTGAGE PAPERS.

neither bank or borrower explain Mr. X what kind of loan are taking and how much loan they are taking neither they give document to read ,

SO WHY HE SIGNED WITHOUT READING

1) There are 2 more guarantors apart from Mr X.

BANK HAS A DICRETION WHOM TO SUE.

2) Note bank is Cooperative bank In Maharashtra.
3) Mr.X and and Mr.Y are real brother

DOES NOT MATTER

Please tell me what are legal action and limitation against Mr. X

HE HAS TO PAY OR ELSE THE HOUSE WILL BE ATTACHED.

if loan have primary security.

EITHER HE PAYS OR WILL BE RECOVERED BY SALEOF SECURITY.

What is the possibility For Mr. X to fight or protect his house since he don't have another house.

HE HAS TO PAY OR LOSE THE HOUSE.
HE HAS TO PAY OR LOSE THE HOUSE.
HE HAS TO PAY OR LOSE THE HOUSE.

HE CAN SUE HIS BROTHER FOR THE LOSS SUSTAINED DUE TO HIS DEFAULT.

Adv. Yogen Kakade (Expert) 07 March 2016
Rightly answered already by the experts above.

Syed Faisal (Querist) 07 March 2016
The financial institution has six years from the date of the first demand to bring legal action against the guarantorThe financial institution has six years from the date of the first demand to bring legal action against the guarantor.sir please explain what relevance in following case.

Rajendra K Goyal (Expert) 08 March 2016
Guarantor may raise the limitation issue if there was no acknowledgement of debt / deposit of installment in last three years.

Sudhir Kumar, Advocate (Expert) 07 April 2016
whether guarantor has at any time during the six years admitted liability.

Legal action against guarantor

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