drt case against gurantor for bank loan
gyangyanjain
(Querist) 21 December 2015
This query is : Resolved
I am the guarantor for a loan availed by a public Ltd co and I was also the director then.
Without my knowledge the bank and the company entered into a settlement and part of settlement was honoured and now the bank has found that I hold a joint property (flat) with my wife.
1...is the partial property attachment valid 2..... The settlement without guarantor knowledge during the case period
Is the guarantor automatically out of this issues.
Please advise with any reference of past judgement if any.
Thanks
SAINATH DEVALLA
(Expert) 21 December 2015
The guarantor is also a party to the liability, and hence notices will be given to him also along with the borrower. U cannot feign ignorance to the settlement made.Gaurantors are liable to pay if the debtor defaults and property owned by the gaurantor to the extent of the share owned by him in the joint property can be attached.But what was the collateral security given by U at the time of disbursement of the loan?
Advocate. Arunagiri
(Expert) 21 December 2015
You are liable for the loan as a guarantor "jointly or severely"
Rajendra K Goyal
(Expert) 21 December 2015
Guarantor is liable for the default of the borrowers.
