Security signature
vakkas
(Querist) 19 August 2011
This query is : Resolved
My father is a central government employee. He is still working for the government.When one of my father's colleague applied for the loan, my father and two others put security signature in favour of the colleague.Due to his malpractice in the dept., he was dismissed from the duty and he did not pay the monthly due for the loan received from the private financial companay(eg:Like Sriram) for the past few months.
Just a week back, my father received a court notice which is addressed to my father's residential address to appear before court.
Will it lead to any problem to my father?
please advice me and provide the solution.
Thank you.
ajay sethi
(Expert) 19 August 2011
is your father guarantor of the loan? lianility of guarantor is co extensive with that of principal debtor . in other words loan amount can be recovered from your father
M V Gupta
(Expert) 20 August 2011
It is clear from ur query that ur father along with two others have stood guarantee for the loan taken by the defaulter. As guarantors they will be liable to pay the loan amount with interest to the company.However the documents executed by your father and others should be got examined by your Advocate and he will find out whether they are properly executed and stamped or not. He will then decide on the kind of defense to put up in the court. Please engage a good lawyer and contest the case.
