guarantors rights and liablity.
venkatesh
(Querist) 29 October 2015
This query is : Resolved
I am defence force employee. My departmental friend took personnel loan of 270000. I was his guarntor. He is absconding since last six months. His emi has been not paid for last six months. Bank has issued a notice to me regarding to pay the remaning 1,70,000 outstanding loan . What all can i do to recover the money from him. Pl guide me.
SAINATH DEVALLA
(Expert) 29 October 2015
Guarantor's have no rights but liabilities only.As a guarantor the bank is not wrong in proceeding against U when UR dear friend has absconded.
Rajendra K Goyal
(Expert) 29 October 2015
As a guarantor you are liable to pay in case borrower defaults.
If you pay to Bank, you will enter into the shoes of the lender and can recover your money from borrower legally.
K.S.Srinivas
(Expert) 29 October 2015
In case the lender becomes defaulter, then then bank issues notice to the guarantor for recovery of outstanding loan amount.
First you pay the EMIs to the bank and then you are entitled to recover the amount from your friend.
Kumar Doab
(Expert) 29 October 2015
Find out the whereabouts of the friend and inform the bank.Thereafter press the bank to proceed against him and his estate.
He is your departmental friend and can be found.
He has his terminal dues from dept.
The bank has noticed you since he is not in touch.
Sudhir Kumar, Advocate
(Expert) 30 October 2015
well explained by Mr KS Srinivas.
I understand that after paying the money you can sue your frind and can also have right on the mortgaged property, if any.
Sudhir Kumar, Advocate
(Expert) 30 October 2015
regarding terminal dues of friend. You have no right on them unless you a civil suit against him and secure attachment order of the court which will take years.
You also do not have any right to ask the bank to proceed against him. It is bank's absolute choice to proceed against you or him and they cannot be compelled to run after him.
You have a right o sue him if you can find him.
Further views can be expressed if you share:-
whether any cheque is bounced?
whether both of you are uniformed or civilians in defence.
Kumar Doab
(Expert) 19 April 2017
Same query at:
http://www.lawyersclubindia.com/experts/Loan-defaulter-638656.asp
