Guarantor
Arvind Singh Chauhan
(Querist) 10 December 2009
This query is : Resolved
Sir,
can loan amount be recovered from loanee's gurantor directly? before attaching the property of loanee. Loanee has sufficient property. If not please cite the relevant law.
Arul Kumar
(Expert) 10 December 2009
As per the contract of Gurantee, if the principle debtor fails to pay the loan amount due to any reason such as death, lunacy, insolvency etc., the gurantor/surety will be made liable to pay it.
R.R. KRISHNAA
(Expert) 10 December 2009
The liability of the guarantor is co-extensive with that of the principal debtor and hence you can directly proceed against the guarantor. There is no compulsion to proceed first against the principal debtor (loanee).
Arvind Singh Chauhan
(Querist) 10 December 2009
Sir debtor is not dead, neither lunatic nor insolvent, he is prosperous having property in large. but recovery certificate have been issued against guarantor. What is the remedy. Please suggest the citation or legal provisions.
n.k.sarin
(Expert) 10 December 2009
I do agree with Mr.Krishna legal.
S. Bharath
(Expert) 10 December 2009
Krishna Legal is right. The guarantor can later sue the Principal Debtor for recovery of money and execute the decree against his property.
niranjan
(Expert) 10 December 2009
I agree with Krishnaji and Bharatji.
Raj Kumar Makkad
(Expert) 10 December 2009
It depends upon the mortgagor from whom to make recovery and there is no specific law wherein first the property of the loanee is to be auctioned and recovery is to be made out of sale proceeds. Recover from where you find success......is the law and practice now.
joyce
(Expert) 10 December 2009
I agree with Arul Kumar, if any recovery is to be enforced, first proceed with the principle debtor, as he has got sufficent property to clear off the debt, later if he fails as to his liablity, then his garantor is liable. Co- Extensive right as Krishna says , will not suddenly comes to operation, when all the remdies are exhusted aganist the pricple debtor then this rule applies. so it is said as.....creditor can step into the shoes of garanteer as if he is steping inn a debtor's for recovery of debt. So first debtor then next his surety.
aman kumar
(Expert) 16 December 2009
joyce is right
