vikram singh (advocate) 03 January 2014
THE BORROWER COMMITTED DEFAULT TO THE BANK .ACCOUNT CLASSIFIED AS NPA. THE BANK PREPARED TO ISSUE SARFAESI NOTICE TO THE LIMITS SANCTIONED . MY DOUGHT IS THE BANK ISSUED BG FOR RS.50 LAKHS AND THE SAME IS NOT INVOKED . CAN THE BANK DEMAND FOR THE SAME IN THE SAID NOTICE.
PLEASE ITS URGENT.
VIRAJ KADAM (Advocate Supreme Court of India) 04 January 2014
Dear Friend
Your query is not all that clear. However, from whatever that you have quoted; BG is only a contractual liability. There cannot be any BG for loan to a borrower. BG is used for third party only. Loan amount due to bank cannot be recovered by BG. Hope this answer your query.
Regards
VIRAJ KADAM
Advocate, Supreme Court of India
T. Kalaiselvan, Advocate (Advocate) 04 January 2014
Yes, loan amount due to bank cannot be recovered by BG.
Ajit Singh Cheema (practising Advocate) 05 January 2014
The Bank Will Reserve its right to enforce guarantee if the same is invoked.There must be mention of the bank guarantee in the Sarfaesi Notice.
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