If you have no relation to the company as a guarantor or in some other capacity, then you Should simply respond to the notice by saying that my exit stood on 2016. The NPA has no relation to the account or rights I held with the company. However, personal guarantors are liable to the extent of their exposure. Documents needs to be seen
I am a guarantor of Private Limited Company that availed a loan of 1 crore under CGTMSE scheme
I had given my personal gurantee for rs 1 crore Loan under Cgtmse scheme. I resigned from company in 2016, and intimated the bank and all other director about my resignation. I also completed all the formalities related to share transfer to share holder. I also requested Bank to release my gurantee in 2016 only. Company account goes NPA in 2018. Now bank has sent DRT notice to is me . From June 2015 to NPA date i dont have any idea regarding bank and company dealing. Kindly advise.
Asked 4 years ago in Property Law
Religion: Hindu
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7 Answers
You can show to the court that you have ceased to be the director of that company. You can also send them the copy of correspondence with ROC for your resignation as director
Liability of principal debtor is co extensive with that of guarantor
2) you may have resigned but guarantee is still in force
3) you are equally liable to repay the bank dues
See just by intimation you are not released from gurantee till.the bank give you NOC and release letter. So for contesting you can contest the matter before DRT but the loan is not laid kr gurantee is not released pending loan you will be responsible for same.
To your horror, your guarantee dose not absolved by your resignation neither company board had such authority. Only bank could have release you from guarantee on replacement.
A guarantor is having the same liability as the borrower. A guarantor and borrower are jointly and severally liable to repay the loan amount.
If you have received notice under section 13(2) of sarfaesi act then you are required to issue a reply notice within 60 days from the date of receipt of this notice.
You may consult an advocate in the local and give a suitable reply or else you may lose your chance to fight against the menace of taking possession of your property by the lender.
