The guaranror is personally liable for loan defaults and hence the situation. You should approach the drt in case the bank files an application.

Regards 

It actually depends on the agreement of loan and terms of guarantee given. If bank has issued you the letter it will stand in support for you in the court. 

Yes, Your limit is as per latest letter issued by bank to 1 crore only and not more than that in this case.

If you want I can send a reply to bank in this regarding Guarantor terms and conditions with agreement with bank.

As per sarfaesi act, bank can auction first uncle's property and not yours. Kindly check what are the market value of uncle's property and bank amount.

See if the bank has legal limited your liability and given letter in respect to same then in that case you are only responsible upto sum of 1 crore.

You would not be liable for entire Rs 10 crores as your liability has been limited to Rs 1 crore 

letter would be binding on the bank 

It is settled law that firstly the loan will be recovered from the mortgaged properties. If there is balance remained than it is recovered from the borrowers and guarantors.

In your case, you have not disclosed what amount has been mentioned in the guarantee agreement signed by you.  In case Rs.1.00 crore is mentioned in the agreement of guarantee and the letter given to you by the bank corroborate this amount of  Rs.1.00 crore, your liability shall be only for 1 crore that too joint and several.

In case bank initiate legal proceedings, join it and contest it forcefully,  never give up and not to pay any amount till there is direction from Court and all options are exhausted.

First of all, guarantor is equally liable for bad debts/loan default. Since you have not mortgage any property as a guarantee, bank can only file recovery suit agasint you. And normally bank dose not reduce bank guarantee without replacement.

But this is not your head ace, you have letter duly issued by bank reducing your BG, hence your liability restricted up to one crore.

you are not liable for entire loan amount .if bank harrasing you immediately approach before the banking ombudsman . 

You are liable for guarantee of one crore only as you have letter issued by bank and bank cannot force you to take guarantee of complete loan.

But first they have to take over the properties mortgaged for loan and after that bank can issue notice for left over loan. 

Opinion can be given after going through the guarantee agreement and the letter issued by bank.

Then the letter will come to your rescue

submit a representation before bank and enclosed issued bank bank seal letter along with representation. 

See you can take stand based on letter of bank though bank shall plead based on documents signed by you.

Subsequently bank had agreed to restrict your guarantee 

it would be binding upon bank 

You have bank letter for reduction of guarantee, you are responsible for up to that much amount only.

If property was mortgaged to another bank hen you could not have executed gift deed in son name without bank consent 

terms of loan would contain a clause that no third party rights can be created during subsistence of loan 

You be rest assured. 

The said property is not mortgaged to them, hence they would not involve in unnessarry litigation.  Don't go too far. Be positive and join the proceedings. Watch.  Act as per advice of your lawyer practising in DRT.

See there is already charge of the other bank on the property though bank can file to set aside the transfer and can ask for second charge on same property.

Property is mortgage with bank ? alienation in any manner dose not impact bank`s right to auction the property. 

The letter issued by bank is an evidence for you to fight against the bank action to restrict the bank's claim over your proeprty to that extent alone, however this will be decided by the court of law only, the bank will turn a deaf ear to your requests because they will be interested in recovering their loan amount only.

You concentrate on the evidence in your hand which clearly shows that the bank has restricted your liability to that extent only, you may not bother about what the bank has or will do on it.

If the property transferred to your son is not coming under the list of property offered as surety to the bank as a guarantor, then you may not be worried about that.

They may not be able to recover their outstanding amount by roping in the property which has not been offered as security by you at that time.