Non payment of loan amount

Advocate Ravinder (Querist) 13 August 2014 This query is : Resolved
To All experts,

My client had taken a loan of Rs. 50 lacs from a nationalised bank for his business of manufacturing automobile spare parts. It is a sole proprietorship. His friend had given collateral security. My client paid only few payments of loan. Now the company is running in loss and the outstanding balance went upto 80 lacs as on date. The security given is much less than the outstanding loan amount. What is the procedure adopted by the Bank for recovering the loan. In case if the security given falls short of the loan amount, will the bank attach even the personal properties of the principal debtor and guarantor which are not given as security.

Ravinder, Advocate.

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Isaac Gabriel (Expert) 14 August 2014
The bank can proceed against the mortgaged property,and if it is insufficient,initiate action for collecting it from the borrower and surety.

V R SHROFF (Expert) 14 August 2014
bank Can attach other personal property of surety / guart / + debtor ..

Rajendra K Goyal (Expert) 14 August 2014
Bank can proceed to recover its loan from borrower, guarantor, primary security and collateral jointly and or severally.

ajay sethi (Expert) 14 August 2014
agree with experts

R.K Nanda (Expert) 14 August 2014
yes, in such case, bank can attach personal properties of the principal debtor and guarantor which are not given as security.

T. Kalaiselvan, Advocate (Expert) 19 August 2014
I agree with the experts' opinion on the subject issue.

Advocate Ravinder (Querist) 19 August 2014
Thanks for all the experts for clarifying my doubt,sparing your valuable time and sharing your experience.

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