Even though the guarantor died while the loan is still outstanding and the borrower is living, it is for the borrower to repay the loan amount, the bank may not have any right to recover the loan amount from a dead person's account.

However since the amount has been given as collateral security, in the even of the borrower defaulting the loan payment, the bank may discreetly avail that collateral security from the deceased guarantor's account.

However you may issue a legal notice to release the amount and then drag the bank to consumer forum seeking to redress the grievances.

As your father was a guarantor, bank has a right to deduct money from his account and remaining money will be passed on to the legal heirs.

Any asset belonging to him can be used to get the money for which he was a guarantor

Then the legal heirs of the deceased should file a consumer case against the bank if it is refusing to settle the amount held in the account of the deceased account holder.

Liability of guarantor is co extensive with that of principal debtor

2) bank cannot recover money lying in fixed deposit against pending loan amount by exercising its right of lien merely because your father had acted as guarantor

3) you can sue the bank if it has failed to repay the money lying in fixed deposit

Bank cannot recover loan amount from the fixed deposit lying in the bank

Your father had not given fixed deposit as collateral security

You can sue the bank to recover the money lying in fixed deposit

1. If your father stood guarantor of the loan then on default of the borrower your father can be held liable for repayment of the loan.

2. In the process for recovery of loan the movable or immovable assets of your father standing in his name can be attached and sold.

3. Your father being the guarantor of the loan can not ask the Bank to first approach the borrower and them to start the recovery process.

1) Bank has to go with bank's whole procedure that regarding that particular loan and not mix with FD'S of your father and not make collateral with this loan amount.

2) Are your father's FD was kept as security against that loan. If not than you can transfet FD'S on your mother's name or can withdraw from that bank too.

This is my response to you:

1. That is a major problem;

2. Because bank has exclusive authority to retrieve money from the guarantor (under the garb of excessive powers);

3. But you can file a suit in the civil court and try seeking court orders restraining the bank from obtaining your father's FD's;

4. Before approaching the court send a legal notice to them.

The guarantor of a loan is liable to pay it if the debtor fails to clear it.

Dear Client,

First of all, bank can recover through court only from the assets inherited from father, no automatic deduction from the FD`s which are not part of guarantee. You can seek court injunction against any recovery.

bank has the right to liquidate the FD to realise it dues

when borrower took the loan, he must have given some collateral security to bank

so request bank to touch that first before touching your father's FD

As a matter of law the SC ahs made it clear that it is the liability of the guarantor to repay if the loan is defaulted.

Regards

The can not recover the same without the due procedure of the court.

Get in touch with some local lawyer and see if some settlement can be made by him.

Regards

Dear Sir,

The legal heirs of the deceased should file a consumer case against the bank if it is refusing to settle the amount held in the account of the deceased account holder. 1. If your father stood guarantor of the loan then on default of the borrower your father can be held liable for repayment of the loan.