On a secured loan
Arun
(Querist) 08 August 2014
This query is : Resolved
If a person takes a loan on a property at NBFC and if the person become defaulter and matter goes to the court. And finally that person cannot able to pay the amount. What the court will do in this case, whether it will take over the property or asks the gurantor to pay. finally What will be the concequences for the defaulter, the property and the gurantor.
Can anyone plz give some informtion on the above matter.
Sudhir Kumar, Advocate
(Expert) 08 August 2014
Whether guarantor is party to loan?
Whar prayer has been made to the court?
malipeddi jaggarao
(Expert) 08 August 2014
If the Principal borrower fails to pay the loan, the guarantor is also equally liable. If there is mortgaged property, the NBFC might have prayed for disposal of the property and also included guarantor as defendant in the case. Normally it happens that if the mortgaged property is having market value and easily sold in the auction, the creditor will prefer to realize the amount by sale of the property. If any residual is left over, he will demand from the guarantor to make good of short fall. That all depends upon the capacity of the guarantor, saleability of the mortgaged property.
Unless we scrutinize the prayer in the petition filed by NFBC, we cannot give you specific advice.
ajay sethi
(Expert) 08 August 2014
AGREE WITH mR MALIPEDDI
Rajendra K Goyal
(Expert) 08 August 2014
Well advised, agree with the expert malipeddi jaggarao ji.
Guest
(Expert) 08 August 2014
Well advised by Shri Jaggarao.
Sudhir Kumar, Advocate
(Expert) 08 August 2014
agreed with Mr Jaggaroa.
more views could be expressed if the author could reply
Whether guarantor is party to loan?
Whar prayer has been made to the court?
T. Kalaiselvan, Advocate
(Expert) 10 August 2014
I too agree with expert Mr. Malipeddi Jagga Rao garu, nothing more to add.
V R SHROFF
(Expert) 11 August 2014
well advised by experts, so no need to add further.
Biswanath Roy
(Expert) 12 August 2014
Expert Mr. MALIPEDDI JAGGARAO is the fit person to deliver fit opinion. I do appreciate his opinion.
Advocate. Arunagiri
(Expert) 12 August 2014
The borrower and the guarantor are liable jointly or severally.
The NBFC will attach the property and will realize the money from that sale.
In case of any surplus it will be refunded to the borrower.
In case of any deficit it will be recovered from the guarantor and borrower.
malipeddi jaggarao
(Expert) 12 August 2014
@Ld.Mr.Biswanath Roy - Sir, I am too small to receive such a big appreciation from you. I am happy today.
Biswanath Roy
(Expert) 12 August 2014
@ Mr. Jaggarao,
Really you deserve such appreciation.
Guest
(Expert) 13 August 2014
Mr. Jaggarao,
Why shy to accept appreciation when you deserve on account of real and practical experience of several years on banking laws in addition to your qualification in law?
