My father was director of XYZ Pvt Ltd and he provided house as Collateral Security and personal guarantee at the time of sanction of loan by State Finance Corporation (SFC) to Company XYZ Pvt ltd in 1993.
95% of loan was disbursed and then he was removed from position of director in Oct 1996. My father wrote on 19 Dec 1996 to SFC that his collateral security be returned to him, since he was no longer a director and also that SFC make arrangements to obtain other directors property as Collateral Security to safegauard their loan advanced to the company
The other directors did not even take steps to get the balance 5% loan disbursed and the unit never started operations.
The loan remains unpaid even after 15 years. Now SFC has taken possession of the house provided as collateral Security on 15 June 2011.
Can my father file a suit challenging the possession since he has been removed and demand that his property be returned.
