With reference to the above I hereby inform you that I am a guarantor in a hypothecation loan of my nephew. The loan was given by a Gujarat's Co-operative Bank. I did not give any of my properties as security.
After few years my nephew defaulted and due to negligence of the bank he managed to sell off his stock as well as machinery. He too had not given any property as security. As of today he doesn't have any property on his name and hence the bank is pressurising me to repay the same.
The case is going on in court of Board of Nominees but the bank is trying to create burden in two of my properties. One is in my name while another is in name of my HUF. Can the bank create burden in my property without court's order ?
Please help.
