Sarfaesi act
Hari Krishna
(Querist) 01 September 2015
This query is : Resolved
case details: A cold storage bacame default to the bank for an amount of 1 crore. The Bank attached all the collateral security of the cold storage including the Guarantors property which valued to a total amount of 7 crores.
Dear sir, Kindly reply me the following query:
1.The value of Guarantors property is around 30 lakhs. Is there any provision to substitute the Guarantors property to the same value that was attached by the Bank.
2.If so there is a provision, can we substitute the attached property by Fixed Deposit or can we attach any other property for the same value of 30 lakhs.
Anupam Lahiri
(Expert) 02 September 2015
Dear Hari,
The Bank as a lender applies the rules of prudence in the matter of attachment of properties of the guarantor or borrower for realisation of the debts.
The Guarantee Agreement generally specifies the things which comes under its purview. Pls consult the loan documents to find out the provisions.
