Rights of guarantor
Arun Kumar
(Querist) 28 November 2012
This query is : Resolved
My Father has signed as a Guarantor for a loan taken by his colleague (Govt.School Teacher). And now the borrower is not making repayment of loan in time, so, the banker has locked my father's salary account, Since 3 months he can not able to draw the salary, But the Borrower has his salary account in different place, the banker is not recovering from his salary, What action we can take against him? Is it not Possible to discharge from the guarantor's liability?
Devajyoti Barman
(Expert) 28 November 2012
There is law which makes them liable to go first against the borrower.
Since your father is guarantor, he is liable to make the payment.
However in this situation he can revert to his colleague and file case against him to discharge his liability against your father.
Arun Kumar
(Querist) 28 November 2012
Can we approach the banker to take action against him?
prabhakar singh
(Expert) 28 November 2012
Right of surety starts with discharge of obligation.
The Indian Contract Act, 1872
140. Rights of surety on payment or performance -
Where a guaranteed debt has become due, or default of the principal debtor to perform a guaranteed duty has taken place, the surety upon payment or performance of all that he is liable for, is invested with all the rights which the creditor had against the principal debtor.
Raj Kumar Makkad
(Expert) 28 November 2012
The guarantor can recover all dues from the principal debtor by filing a civil suit for recovery but definitely he has no right against the banker in the given case. Your father should have though hundreds times before becoming guarantor.
