What are the liabilities of third party inchitfund act
Ankam Chandana
(Querist) 16 August 2016
This query is : Resolved
Sir if the main party failed to pay the amount third party will be responsible.if the main party intentionally deceive and involve the third party what are the measure s to come over.
Ms.Usha Kapoor
(Expert) 17 August 2016
Dear Client,
If principal party plays fraud and both the creditor and surety knows about it then surety/third party will be liable under Section 128 of the Indian Contract Act as Surety's liability is coextensive with that of principal debtor. If the surity accepts suriotyship in good faith without knowledge of fraud on the principal's part and if principal's fraud is subsequently known surety is not liable and discharged from his liability.
Rajendra K Goyal
(Expert) 17 August 2016
Academic query, state material facts of the problem if any.
Raj Kumar Makkad
(Expert) 17 August 2016
The guarantor cannot be permitted to exonerate his liability towards creditors merely on the ground that the principle debtor has played any fraud with him. He is free to initiate proceeding against all persons involved in the issue of fraud but still his liability stands intact unless the court decides otherwise.
Dr J C Vashista
(Expert) 18 August 2016
I agree with expert advise of Mr. Raj Kumar Makkad.
The guarantor is fully and equally responsible and liable to repay the loan.
