Recovery suit

Neeraj Kaushal (Querist) 18 December 2011 This query is : Resolved
Bank recovered loan from guranter/surety , what remedy i have for guranter who deposited the loan of Loanee . Is there any law to recover loan amount from loanee who have raised loan.

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vinay vaidhya (Expert) 18 December 2011
file a money recover suit

ajay sethi (Expert) 18 December 2011
the liability of principal debtor is coextensive with that of guarantor .

bank must have issued notice to both the principal borrower as well as guarantor .

if you have paid the loan amount you cna file suit for recovery of the loan amount with interest from the principal borrower

Raj Kumar Makkad (Expert) 18 December 2011
You cannot raise any question mark against the action of the bank as the same is legal and justified but now question remains that you being guarantor have to pay the loan amount with interest on the part of loanee so why should you be penalized.

The answer of this question is not so simple. Why a legal machinery should come in your help when you didn't secure your own civil right before becoming a guarantor. I don't think civil court shall grant you any relief of recovery.

Guest (Expert) 19 December 2011
Agree with experts

RAJU O.F., (Expert) 19 December 2011
Since you as guarantor/surety paid the loan dues of the borrower, you can proceed separately by filing suit against borrower. The moral is don't stand as surety/guarantor to anybody, since once a guarantor, almost always a guarantor for bank loans.

vasant kulkarni (Expert) 19 December 2011
FROM THE PLAIN READING OF YOUR QUERY YOU WANT TO KNOW, WHTETHER YOU CAN RECOVER MONEY FROM THE DEFAULTING BORROWER?

YES .YOU CAN.AS A RIGHT OF SUBROGATION YOU CAN RECOVER THE ENTIRE MONEY YOU PAID TO THE BANK ON BEHALF OF BORROWER.YOU TAKE A CERTIFICATE FROM THE BANK THAT YOU ,AS A SURETY,HAVE PAID THE LOAN A/C. AND PROCEED TO FILE A CIVIL SUIT TO RECOVER( YOUR MONEY) FROM THE BORROWER.

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