Loan from govt
anand singh
(Querist) 26 February 2012
This query is : Resolved
dear Sir
My sister is a haryan govt teacher.In year 2000 her neighbour who belongs to backwards class and unemployed approached to haryana backward classes & economically weaker sections Kalyan Nigam for loan for Rs 50,000/-.The said kalyan nigam promised him loan on condition of surety given a govt employee.As he was her neighbour my sister signed as surety to him for availing loan and the loan was sanctioned.but now my sister is in a receipt of notice from the kalyan nigam stating the you persude the person who availed loan to repay the loan amount otherwise recovery action will be initiaited.my sister has persuaded the individual to repay but he is not listening to her.pl advise how to proceed
Shonee Kapoor
(Expert) 26 February 2012
The bank is within its rights to recover the said loan amount from the surety.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
Guest
(Expert) 26 February 2012
Dear Vijay,
A surety on behalf of a loan seeker is bound either to get the loan repaid by the said person or to make payment by self.
So now, it will be better for your sister to take help of some of the common neighbours and friends to convince the defaulter to ensure repayment of the installments of loan amount direct to the Kalyan Nigam concerned every month or get some post dated cheques (PDC) drawn in her own name and start paying to the Nigam by herself.
In case any of the PDCs is dishonoured by bank she may be able to recover the amount along with some more compensation through the court of law.
Adv.R.P.Chugh
(Expert) 26 February 2012
Querist,
Concurring with what Ld.Seniors have said above - a lot also depends upon the agreement that she signed as a surety. Normally a surety has a lot many rights under the Indian Contract Act, 1872 and is discharged from liability on various counts. A perusal of such agreement would come handy. However it has been seen banks do make the surety agree to give up all rights of a surety in the agreement - which the courts are too happy to uphold as correct.
If that is the case - I am afraid you'd have to pay - but do try and seek the good offices of your community.
V R SHROFF
(Expert) 26 February 2012
She accepted of her own will to be Surety. It it the moral & Legal duty to fulfill duty of Surety. So Pay the bank. After all why bank waste pubic money??
Never be Surety. Many innocent suffer, and repent after 5-10 yrs when 30k becomes 1.30L, and the surety had to pay,
He betray you, whom you trust and help.
Then Why Help?? ho knows who change his mind
Who knows circumstances changed the person.
Any gain to borrower, Any Loss to Surety/ Guarantor.
Who knows your income stop, and you get bank Notice to pay.
It is always better to pay your own money, and not to be surety. Interest payable is double the principal amount, in such case.
anand singh
(Querist) 26 February 2012
Thanks a lot all learned seniors for your valuable suggestions.one thing I want to add in this is,the loan was not taken from the bank but from a haryana government agency disbursing loan for self employment.The name of this agency is HARYANA BACKWARDS CLASSES & ECONOMICALLY WEAKER SECTION KALYAN NIGAM.Sir my doubt is whether (1) this govt nigam also follow bank rules (2)the time of nearly 11 years has passed.Pl guide
Guest
(Expert) 26 February 2012
All financial institutions are governed by the same rules for recovery of loan outstndings, may be the bank or the Government agency. Rather, any Government orgnisation has more authority that the private banks to recover loan outstandings, like land revenue even by use of the District Administration/police authorities.
anand singh
(Querist) 26 February 2012
thanks PS dhingra sir and all the Ld seniors
Guest
(Expert) 26 February 2012
Dear Vijay,
You are welcome. I do not intend to make you fearful, but to remain cautious. Even if the rules of the Government agencies are not made so to recover the outstanding as land revenue, they usually try to go out of the way to misuse their authority to make the Government machinery operative when the concerned authorities are under pressure to recover money howsoever.
So, better try the plan that way, as I suggested in my first reply, to come out of the tricky situation.
Raj Kumar Makkad
(Expert) 26 February 2012
I do agree with the thoughful advice of all experts.
Sudhir Kumar, Advocate
(Expert) 27 February 2012
She has not only to pay but also to inform her department about the transaction.
She has a right to sue the loanee about the loss sustained due to his default.
