Regarding guarantor in home loan
RAKESH KUMAR
(Querist) 01 April 2014
This query is : Resolved
Dear Sirs,
This is a type of short story. There were two friends, let's say, "A" and "B". "A" was the Sole Proprietor of a business and he had availed Bank Overdraft facility with the Bank and "B" was the Guarantor for the said OD facility provided by the Bank. "B" had availed a Home Loan from the same Bank and "A" was the Guarantor in the Home Loan. Now, "B" refused to renew the OD facility and as such, the OD facility was terminated by the Bank. What would be the remedy available to "A", if he wants to withdraw his Guarantorship from the Home Loan provided by the Bank to "B"? Can he sue "B" legally for the loss of business owing to termination of OD facility?
Please guide me by providing your esteemed advice.
Thanks and Regards
Sudhir Kumar, Advocate
(Expert) 01 April 2014
whether there was any express or implied agreement to be guarantor of each other.
Rajendra K Goyal
(Expert) 01 April 2014
B does not want to remain as guarantor in the OD loan to A. Bank has withdrawn the facility. B can not be forced to remain as guarantor if loan is repayed. He can not withdraw his guarantee till loan is outstanding.
Similarly A can not withdraw his guarantee in the home loan till loan is outstanding.
In absence of any agreement to the contrary, A can not sue B for loss of business.
Guest
(Expert) 01 April 2014
Academic story of a student is good.
ajay sethi
(Expert) 01 April 2014
agree with rajendra goyal .
RAKESH KUMAR
(Querist) 02 April 2014
Thank You all for your Valuable Advice.
Thanks and Regards
RAKESH KUMAR
Guest
(Expert) 02 April 2014
You are welcome, but with the advice to post only the real problem in future, not your classroom exercises intended to be solved through this forum.
