Loan settlement by guarantors
Ramanan
(Querist) 07 November 2011
This query is : Resolved
Sir,
During the year 2000 one of my collegue took a loan from bank,myself and another collegue as guarantors for the loan.
year 2003 my collegue left the sate for better prospects without settling the loan
amount.
Bank filed suit against three of us.We both has to share the loan outstanding equally as guarantors and
settled loan account during 2008, to avoid legal proceeding like salary recovery, and a certificate stating the guarantors have repaid the loan amount was issued by the bank.
Even after so may reminders and telephone calls he is not willing to repay the amount
we have remitted in the bank to settle his loan account.
please suggest legal remedy to recover the
amount paid by us.
ajay sethi
(Expert) 07 November 2011
if as guarantors you have repaid the loan you can file suit to recover the loan amount from principal debtor ie your colleague .
consult a local lawyer
Sankaranarayanan
(Expert) 07 November 2011
you consult the local lawyer and seek his advise by way of explain all facts. sure you can recover by file a suit for the same.
Normally friends are good but some exceptional too.
Advocate M.Bhadra
(Expert) 07 November 2011
If the property was mortgage under SARFESAI Act in Bank and the bank sanctioned the loan on the basis of secured asset,then bank could have recover the loan after sell the property of the principal borrower.You should not had settle the loan with the Bank,now you should file a Misc.case to the DRT to buy the property of principal borrower if any.But the loan does not cover SARFEASI Act.then you should go to the Civil Court.
prabhakar singh
(Expert) 07 November 2011
Be guided about your rights by sections 140&141 of the contract Act,which read as follows:
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.
141. Surety's right to benefit of creditor's securities -
A surety is entitled to the benefit of every security which the creditor has against the principal debtor at the time when the contract of suretyship entered into, whether the surety knows of the existence of such security or not; and if the creditor loses, or without the consent of the existence of such security or not; and if the creditor loses, or without the consent of the surety, parts with such security, the surety, the surety is discharged to the extent of the value of the security.
Illustrations
(a) C, advances to B, his tenant, 2,000 rupees on the guarantee of A. C has also a further security for the 2,000 rupees by a mortgage of B’s furniture. C, cancels the mortgage. B becomes insolvent and C sues A on his guarantee. A is discharged from liability to the amount of the value of the furniture.
(b) C, a creditor, whose advance to B is secured by a decree, receives also a guarantee for that advance from A. C afterwards takes B’s goods in execution under the decree, and then, without the knowledge of A, withdraws the execution. A is discharged.
(c) A, as surety for B, makes a bond jointly with B to C, to secure a loan from C to B. Afterwards, C obtains from B a further security for the same debt. Subsequently, C gives up the further security. A is not discharged.
BUT TO PROCEED YOU NEED A LAWYER.
