I have do guaranty of my relative in a finance co.my relative gave no emi.company do case in sole arbitration act.I have no property and anything on my name.what will can be against me.how I will be safe?
Asked 2 years ago in Civil Law from gaziabad, Uttar Pradesh
if you give gaurantee then in case of failure by the relative the amount will be recovered by you
Advocate, New Delhi
Since you are the guarantor the amount can be recovered from you by selling your property. If no property exists in your name then you can be imprisoned.
you have acted as guarantor of loan taken by your relative . finance company will proceed against both of you and obtain award against you before sole arbitrator . the liability of principal debtor is co extensive with that of guarantor . company can attach your property if any in recovery of loan . if you dont have any property finance company can proceed personally against your relative and you to recover funds advanced