Unmortgaged property be taken over by bank against guarantee

I do not know what you mean by judgement, the bank is not required to knock the doors of court for collection of bad debts, it can do it on its own, if you want to resist the proceeding you can approach DRT, you are at par with borrowers, the bank do have the option of auctioning your property also, in the event if it fails to mobilise fund from borrowers.

I agree with expert Srinivas, but I do not understand without going to the court how can a Bank recover money from the borrower. 

"I do not know what you mean by judgement, the bank is not required to knock the doors of court for collection of bad debts, it can do it on its own,"

In my case Bank has already filed a case in DRT under SARFESI & RDDBFI Acts.  The mortgaed properties are listed as Schedule C, D & E.  The bank further applied to DRT for attaching properties which are not mortgaged at all as Schedule F & G.  Now can the Bank / DRT decide to sell away the unmortgaged property in Sch. F & G.

Yes, upon the request of Bank, the DRT will order to attach unmortgaged properties Sch. F & G, because he is guarantor. 

The position will be different in case of Director of the Company.  If there is any unlawful debt committed by one of the director of the company, the recovery would be to the extent of the share of that particular director and will not applicable to other properties of that Director.

I agree with Shri Ravindran. Banks normally seek Attachment Before Judgement (ABJ)for the immovable properties of the Guarantor for the loan that has gone bad.  They seek ABJ against the properties  which are not under their mortgage as in such cases SERFASI act cannot be applied.

For the Mortgaged properties, Banks are free to apply SERFASI Act and take posession of the property and sell the same.

In your case, I feel since you are the Guarantor for a loan, Bank must have prayed for Attachment Before Judgement for the assets which are not under mortgage to them.

Bank cannot proceed under SARFAESI on the properties of the guarantor, if it is not mortgaged to the bank towards the loans taken by borrower. 

As guarantor, you have equal liability as borrower. If due amount is more than Rs.10 lakh bank can prefer OA (suit ) before DRT and pray for attachment of the unsecured properties of guarantor stating that the value of secured properties will not be sufficient to recover the dues. In such cases you will have to oppose such petition by engaging an expert lawyer. If already ex-parte Order was secured by bank, file petition to set aside such Order on valid grounds.

In My Case, the Bank got the exparte order and the Lawyer is trying to set aside the order of the Preciding Officer.  I require support by way of case laws where in the issue is similar.

Dear Gopi Jee,

You are a Sr.Manager. Please note one thing. Having stood Guarantee for a debt, it is your bounden duty to repay it when the Principal Borrower failed to do so. Instead of spending your good money for Court cases, my sincere advice to you is to have a dialogue along with the Principal Borrower with the Bank Officials to work out a compromise and resolve the issue. Banks shall be normally receptive towards compromise proposals. If at lower level you are getting lukewarm response, you can escalate the issue to their higher authorities. If it comes to it, you can even pray before DRT with your and your Principal Borrower's intention to repay under compromise. DRT itself is likely to facilitate the compromise negotiations.This approach is good for your in the long run. Case Laws, Lawyers, waiting in the corridors of the Courts will only add tension and cannot change the fact that you are the Guarantor for a debt which you have to make good, if not today may be after considerable time.

The experts/advocates have advised well on the subject issue, nothing more to add.

Recovery from guarantor can be enforced from any tangible effect, irrespective of the property being not mortgaged.