LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

shashwat poddar   07 July 2018

Payment as a guarantor

ABC is a partnership firm which took a loan of 20 lacs from SBI. 1 & 2 are partners of ABC firm as well as guarantors of loan. Whereas 3 & 4 are only the guarantors of loan. The resident of 1,2,3 & 4 is kept as collateral security with bank against loan, value of which is 1 crore. Now bank has issued a notice under section 13(2) to make payment within 60 days. 4 is ready to make the payment for the loan as a guarantor for full amount. Whereas 1,2 & 3 are not ready to pay any amount. If 4 makes full payment to bank can he file a petition in DRT to transfer the titles of 1,2&3 to him. Or how can 4 recover the amount paid to bank from the borrowers. What are the remedies available with 4 and what is the outcome of that?


Learning

 2 Replies

Adv Deepak Joshi +917017821512 (Advocate)     07 July 2018

Why do 4 will pay entire amount when he just guarantor, technically he guarantor of 25 % of loan and interest amount.

If 4 pays entire amount then he will have same rights as bank have against 1,2,3. 

 

shashwat poddar   08 July 2018

Should 4 file petition in DRT to transfer the title? Or 4 should file recovery suit on 1,2&3?

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register