Guarantee for chit amount
N.Damodaram Naidu
(Querist) 28 September 2013
This query is : Resolved
Dear sirs,
I have given a guarantee to a friend for a chit along with two other persons one among them is a poor employee and another one is a rich business man and a close relative to the borrower. Now the borrower became defaulter and the chit company filed a suit for recovery for chit amount. Among the three guarantors I and another employee are unable to pay. Can the chit company claim entire the suit amount from a rich guarantor? Can two of us get exemption form that suit claim? please suggest.
Raj Kumar Makkad
(Expert) 28 September 2013
Legally none can claim exoneration from the recovery but it depends upon the decree-holder company to decide from whom to recover. Practically the rich guarantor shall be more important for them.
prabhakar singh
(Expert) 28 September 2013
The debtor and all three guarantors are jointly and severally liable to pay the debt due to Chit Co..and it is option of Chit Co.
To whom to sue and to whom not!
All guarantors are liable if sued with no defence of the kind of disability told.
Advocate Bhartesh goyal
(Expert) 29 September 2013
Debtor and all guarantors are liable to pay the due amount with interest and other expenses.chit company can recover the same from any one or all of you.
Sudhir Kumar, Advocate 
(Expert) 29 September 2013
agreed. There is no other interpretation. SO you may have to pay.
Sudhir Kumar, Advocate
(Expert) 29 September 2013
repeated
http://www.lawyersclubindia.com/forum/details.asp?mod_id=89503&offset=1#.UkeIu3_Qzmk
Sudhir Kumar, Advocate
(Expert) 29 September 2013
also repated
http://www.lawyersclubindia.com/forum/details.asp?mod_id=89447&offset=1
Sarvesh Kumar Sharma Advocate
(Expert) 29 September 2013
i agree with mr. ,makkad 's view that in your case "the rich guarantor shall be more important for them".
prabhakar singh
(Expert) 29 September 2013
I do not know how we people read queries or not read at all before agreeing or disagreeing with other's responses.
The Query ,though repeated as pointed out by Mr.Sudhir Kumar,Does not speak of any decree passed as misunderstood by Mr.Makkad,but speaks of a suit filed against debtor and all three guarantors where two are seeking advice 'can the two of them plead poverty as their defence to suit claiming the third guarantor rich and relative of debtor' to which my answer was in negative.
R.K Nanda
(Expert) 29 September 2013
REPEATED QUERY.
V R SHROFF
(Expert) 29 September 2013
Joint liability. Can recover from any one or all of them
Raj Kumar Makkad
(Expert) 30 September 2013
Why have you repeated the same query.
N.Damodaram Naidu
(Querist) 30 September 2013
Thanks a lot for all the experts who have responded answered to my query.
