whether surety liable to pay loan amount
shrikant chede
(Querist) 20 February 2010
This query is : Resolved
Respected learned experts
My query is as below
A is one of suerty for loan amount ,which is taken by B ,B asset attach by bank due to default Now B has no assets A owns a building having two floors ,bank seize I'st floor for recovery of loan amount being surety ,now bank wants to seize ground floor of A's Residance for recovery of same loan amount . my question is
1)wheather can we bring stay on recovery of loan amount from surety ,from court,if yes then from which court
2)A's mother is 85 year old ,she is ill and advised by doctor complete bed rest
3)A is in GOvt job and his date of retirement 1/06/10 on retirement he will get retirement benifits ie cpf , Graduity etc
4)A is willing to pay the loan amount in installments
On above grounds whether court can grant stay to Attachment of A's House
Arvind Singh Chauhan
(Expert) 20 February 2010
Civil suit may be filed for injunction. Bank may agree with A's request to pay the rest loan amount in installments.
Kiran Kumar
(Expert) 20 February 2010
bank will proceed under Securitisation Act and certainly the surety is liable.
civil court jurisdiction is barred, ultimately the civil suit will be dismissed.
try to make compromise with the bank and get the loan rescheduled.
Parveen Kr. Aggarwal
(Expert) 20 February 2010
To which State of India the transaction and the property pertain?
B K Raghavendra Rao
(Expert) 20 February 2010
Surety stands on the same footing as that of the principal borrower. Surety, therefore, is liable to pay the loan arrears of the bank.
Social conditions of the surety like mother is old and sick, bed-ridden etc., may not find sympathetic consideration from the bank.
You can bring injunction for recovery of the loan amount on the ground that the bank is recovering loan amount far in excess of what it is due and at exorbitant rate of interest than what is accepted in the agreement of loan.
The court may permit you to repay the loan in installments.
B K Raghavendra Rao
(Expert) 20 February 2010
You are advised not to proceed from your side as you need to pay the considerable amount of court fee. The bank would go to the civil court for recovery and in the same court you file injunction application. If the loan amount is less than Rs. 10 lakhs and if the bank is not a scheduled or nationalized bank, it cannot invoke SARFAESI Act (Securitisation Act)
Parveen Kr. Aggarwal
(Expert) 24 February 2010
In some of the states, single residential house is exempted from attachment if the same is not specifically mortgaged.
