Surety for due amount
Sreenivasa Rao. S.
(Querist) 26 June 2013
This query is : Resolved
Dear Experts,
One of friend is running a sanitary shop, he has given construction materials like cement, steel and sanitary items to a civil contractor to a worth of RS.25 Lacks four months back, the civil contractor has not paid the amount till date.Civil Contractor is a property holder and promised to pay after disposing the property, title deed is in favor of his second wife and step son.They are ready to execute a surety bond for the liability of the civil contractor.What kind of document to be executed towards security for the liable amount by the civil contractor.The property is pledged in the bank for RS.25 Lacks and the value of the property is Rs. 1 Cr.Please suggest me for recovery of the liable amount.
Thanks and REgards.
Adv Archana Deshmukh
(Expert) 26 June 2013
When a big amount is involved it is always better to consult a local lawyer and get the documentation prepared properly. Your friend can easily afford to pay the lawyer's fees.
prabhakar singh
(Expert) 26 June 2013
wHEN PROPERTY IS ALREADY PLEDGED BANK WOULD HAVE PREFERENTIAL RIGHT AND NO FRESH MORTGAGE WOULD BE POSSIBLE UNLESS A FRESH VALUATION IS ADMITTED BY BANK AND A FRESH PLEDGE AND MORTGAGE ARE MADE IN FAVOR OF BOTH CREDITORS.
OTHERWISE ANY CONTRACT OF SURETY WOULD BE VALID FOR ONLY 3 YEARS UNLESS PRINCIPAL DEBTOR AND SURETY CONTRACT IS DRAFTED PROPERLY AND ACKNOWLEDGMENTS ARE MADE TIMELY TO EXTEND PERIOD OF LIMITATION.
THIS ALL CAN BE PERSONALLY DONE BY A LAWYER
WHO HAVE DISCUSSED FACTS WITH YOU AND KNOWS RELEVANT LAWS TO SAFEGUARD INTEREST OF YOUR
FRIEND.
HENCE I SECOND TO THE ADVICE OF ADVOCATE ARCHANA.
