• Residential home sealed by bank

Hamara Ghar bank ne seal kar Diya ha w auction Kar Raha ha.
Hamne loan nahi liya.
Ham gaurantor hein.
Bank LOANEE SE RECOVERY nahi Kar Raha.
Hamare pas aik hi Ghar ha.
Jabke LOANEE ke pas Kai Ghar w huge property ha.
Asked 5 years ago in Property Law
Religion: Hindu

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12 Answers

Sir Drt ki proceedings mai gurantor or principle borrower equally liable hote hai or bank dono ka against proceed kar skte hai. Apn e section 17 ki appeal possession ka against DRt mai file ki ya nahe??

Further agar auction ka notice aa gya hai to high court approach kar skta ho auction per stay ka lia further direction ka lia ki borrower ka against recovery initiate karo .

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

hello

the liability of the guarantor is co-extensive with that of the principal debtor unless it is otherwise provided by the contract. The SC has decided on this question, time and again, in line with the intent of the legislature. the liability of the guarantor/surety is co-extensive with that of the debtor. The only exception to the nature of the liability of the guarantor is provided in the Section itself, which is only if it stated explicitly to be otherwise in the Contract.

aapko writ file karni chahiye high court mein.

regards

Rahul Mishra
Advocate, Lucknow
14081 Answers
65 Consultations

5.0 on 5.0

Dear concerned

Apke bank ne DRT se orders liya Higa, jaldi se jaldi DRT main jakar stay apply kariye and wahan pe apna paksh rakhiye. Stay ho jayega 100%

Best of luck

Atulay Nehra
Advocate, Noida
1308 Answers
58 Consultations

5.0 on 5.0

AAp jaldi se koi good advocate ke pas jayein aur DRT mein sectin 17 ta application lagayein taaki injunction issue ho.

Jo advocate DRT mein practice karte hain ussi ke pas jayein. Sak wakil DRT mein rpactice nehi karta hai.

Devajyoti Barman
Advocate, Kolkata
22774 Answers
484 Consultations

5.0 on 5.0

1. Based on the documentary evidence, try to get Stay from the High Court.

Keep Smiling .... Hemant Agarwal

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

Bank can proceed against borrower and guarantor or only against guarantor for repayment of loan

2) file application in DRT a d seek stay against auction of your property

Ajay Sethi
Advocate, Mumbai
94518 Answers
7485 Consultations

5.0 on 5.0

If this is a Govt. Bank, immediately approach the High Court and seek a stay on the auction of your home by this Bank.

Contact a local lawyer handling DRT/DRAT matters.

Vibhanshu Srivastava
Advocate, Lucknow
9582 Answers
303 Consultations

5.0 on 5.0

You should immediately approach DRT and file an application seeking stay on auction of your property.

Contact some advocate practicing in DRT/DRAT.

Regards.

Siddharth Jain
Advocate, New Delhi
6303 Answers
102 Consultations

5.0 on 5.0

कानून के अनुसार बैंक किसी के वरुद्ध कार्यवाही कर सकता है, इसलिए DRT में अपील करो,

Yogendra Singh Rajawat
Advocate, Jaipur
22591 Answers
31 Consultations

4.4 on 5.0

It is not very easy to wriggle out of your role as a guarantor in case the original borrower defaults. Nevertheless, you can still come out of the situation with your credit record intact.

Becoming a guarantor for a loan is a huge responsibility. It means you are providing a guarantee to the lender that you shall repay the debt of the borrower if s/he is unable to do so if such a situation may arise. But what if you decide, after some time, that you want to be relieved? This is a situation that is difficult to wriggle out of, but long story short, it may still be possible, subject to some tough conditions.

Let's take a closer look.

You have been magnanimous and become a guarantor of the loan that a friend or a close relative has taken, but after a while you decide that it has not been your wisest move and you want to opt out. If you don't and the borrower becomes a defaulter on her/his loan you will be made equally liable for it. As a result, not only will the lender come after you, it will be a blotch on your CIBIL report and bring down your CIBIL score drastically. This, in turn means that if you do not pay up the outstanding, you will not get access to credit when you need it. Needless to say, that is a heavy price to pay.

When you decide to opt out, you will have to approach the lender directly with an application. Unfortunately the discretion is solely dependent on the lender whether or not it will let you go. The bad news is that, in the face of rising bad loans that is crippling the banking industry, the lender may not be willing to relieve you. This is because, it has probably tried all the ways and means to get the borrower to pay up her/his debt and failed. The good news is there are some circumstances under which you may be relieved.

1. An additional loan is granted without your consent

If you find that the borrower has taken an additional loan over the original amount that has been sanctioned without your consent, you may ask the bank to relieve you. However, you will still be liable to repay the outstanding on the original amount sanctioned.

2. A substitute guarantor for the loan

You may also approach the bank with an application for a release if there is a substitute guarantor for the loan. If the bank is really convinced why you are opting out and is convinced about the credentials of the substitute borrower, it may set you free. In such a case, your CIBIL score remains intact as the loan is closed as far as you are concerned.

3. Get the borrower to pay back

This seems a little far fetched, as you would not have to bother about opting out if the borrower was making timely repayments and had intentions of paying up her/his entire debt within the stipulated time frame. However, you can indeed give this a shot. If you have been a guarantor for someone's loan, it's obvious that you know her/him very well. Try to make her/him see reason and help her/him out as much as you can to repay your debt. If it means seeking the help of other close relatives or friends, do so at the earliest.

4. Take legal action

If you have granted the bank a hold over some of your tangible assets when you were guaranteeing someone else's loan, the bank will auction the same to recover the outstanding. However if these assets are in the real estate space and are either under mortgage or is an under construction property, you can fight your case saying that it has not been fully paid for.

Since the bank tags the guarantor as a "willful defaulter" when the borrower does not pay up, you could also approach the judiciary saying that at the time that you had stepped in as a guarantor, there were no signs of the borrower defaulting. Just because the borrower has turned truant, does not mean that you are too.

If you manage to come out of the situation you must have a discharge letter from the bank stating that you are no longer liable for the outstanding amount as on the date when your guarantee has been revoked. In such cases you may actually get away with a unscathed CIBIL score.

However, it may serve you well to know that in each of the circumstances mentioned above, the scales tip heavily towards the bank. When you sign up as a guarantor, you are giving the bank to invoke this guarantee at any point of time. As a result, the lender can sue you anytime.

There have been many cases when guarantors were put in a tough spot and had to pay up substantial chunks of money to avoid facing legal action. Being a guarantor is as good as availing of the credit facility yourself so think about it carefully before you make any decisions. It's tough to say no to people who may matter to you, but you cannot possibly put your financial future in jeopardy.

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

The bank should first exhaust the sources of the debtor and then should lay their hands on the guarantor.

Have they issued legal notice before taking possession, you may approach DRT for immediate stay and other reliefs.

Don't vacate the house till then even under pressure.

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

Immediately hire an advocate and take stay against auction. As per civil procedure code, the residential house cannot be attached. Hurry till its too late.

Dalip Singh
Advocate, New Delhi
1083 Answers
36 Consultations

5.0 on 5.0

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