Sir, My father was a guarantor for one person's personal loan. Before 22 yrs. Bank said he was not paid loan. But person took loan saying that he was not get money as one of bank person done fraud. Now, the case is in court &person from registar office came to our home & he said that it is all his will to choose from he wants to repay the money. Please advice us as we are nothing to do with it.
Person took loan now not living in city where he took loan now he moved to another city. But, he said he will come to bank & check with them but if he is defaulter then what action can bank or court can take on guarantor.
1) The liability of principal debtor is co extensive with that of guarantor
2)bank can proceed against principal debtor and guarantor to recover the loan amount or can sue guarantor alone
3) since your father was acting as guarantor he would be liable to repay the loan amount
4) contact a local lawyer and contest the suit proceedings
5) in case any money is paid by your father as per court orders he can sue the borrower to recover the amount paid by him
Loan applicant and guarantor are equally liable to repayment. If the court filed a suit against your father then he should contest the case .If the court decreed and recover the money from your father then he should file a suit for recovery of the money from the original loan applicant.
1.Check whetehr the land was disbirded or not.
2.if the loan was indeed granted then your father being the guarantor is liable to make the payment.
3. However of there is no documentary proof of your standing as guarantor then you can contest the claim of the bank.
4.Without seeing the contents of the plaint no further advice can be given.
If the borrower is not repaying the loan, then the guarantor shall be held liable for repayment.
Your father can repay the loan to avoid his property from going into auction and after that he can recover this loan amount from the borrower by his own means and method or by filing a recovery suit against him through court.
Person took loan now not living in city where he took loan now he moved to another city. But, he said he will come to bank & check with them but if he is defaulter then what action can bank or court can take on guarantor.
If the borrower is not repaying the loan or he is absconding or not traceable then the bank will approach the guarantor for repayment.
he guarantor is liable to repay the loan to the bank and he can recover the same from the borrower at a later stage.
Actually person took loan said he didn't receive money because someone from bank done fraud. Now that person also not working in bank anymore. Now person took loan asked for papers from bank. If bank didn't have papers then. What actions can we take on bank?
Whether any police complaint was filed by borrower against bank for non receipt of loan amount
2) if cheque was never issued by bank to borrower then bank would not be able to recover its dues from you or the borrower
3) engage a local lawyer file detailed reply in the suit proceedings
The bank cannot take any legal action if there are no records or details available with them.
If the borrower is confident of this position that the bank is not having any details of the loan granted to him, let him go to the bank and clear this.
The guarantor should forcibly take him to the bank to clear this position or else the guarantor will be held liable for repayment, the bank manager with the help of some crooked staff may create false records and would initiate recovery action legally, hence an urgent action is to be initiated by the guarantor immediately.
If the valid document is not kept in the bank how can they move legally.Three is a limitation period is existing for recollecting bad debts. So just watch the banks movements for collecting the debt in legal way.