• Chitfund sureties

Sir..i naren..government employ.. approached a money lender in hyderabad for the need of money .He lent money 2.5 lkh with interest ..i cleared timely..he bacame best friend in due cource..and i put surty signatures..5 chits...and for me he gave surty for 2 chits...i paid regularly..but he did not paid to chit funds..he obsconded now..chit companies forcing me..and threatining me..thy should collect all dues from salary...approxmately 50lkhs above chits..i guarantor...my salary is only 60000...cutting35000 cutting..net 25000 only..how can i fight against this ..pls guide me
Asked 1 month ago in Constitutional Law from Hyderabad, Telangana

Liability of guarantor is co extensive with that of principal debtor 

 

2) since you have acted as guarantor you are liable to pay 

 

3) if you fail to pay chit fund can sue you to recover dues with interest 

Ajay Sethi
Advocate, Mumbai
69049 Answers
4153 Consultations

5.0 on 5.0

File a suit in court  to seek directions to attach the properties of the defaulter first and the balance amount of loan if any to recover from you. 

Kallol Majumdar
Advocate, Kolkata
1864 Answers
2 Consultations

5.0 on 5.0

Surety alongwith the principal bidder (PB) is jointly and severally liable for the default committed by the PB.

You try to locate the PB and produce him before the chit fund company.

 

S Srinivasa Prasad
Advocate, Hyderabad
956 Answers
6 Consultations

5.0 on 5.0

Dear Sir,

Yes, a guarantor to a loan can sue the principal debtor if he defaults and the guarantor had to pay on his behalf. In fact, as per section 145 of the Contract Act, there is an implied promise to indemnify the surety

The creditor has a right to obtain a decree against the surety and the principal debtor. ... The surety does not have a right to dictate terms to the creditor as how he should make the recovery and pursue his remedies against the principal debtor at his instance

Yes you can intiate the recovery proceedings against the original debtor once you pay the loan amount to the bank and obtain all the original document related to loan. However debtor can not be given jail term as it is civil matter.

Netravathi Kalaskar
Advocate, Bengaluru
3811 Answers
18 Consultations

5.0 on 5.0

No right to attach salary. File FIR agasint lender that he forged chits in your name and took money.

Yogendra Singh Rajawat
Advocate, Jaipur
14612 Answers
19 Consultations

4.6 on 5.0

You can collect it only if you have Court order

Prashant Nayak
Advocate, Mumbai
14536 Answers
25 Consultations

4.6 on 5.0

Under law a surety is as liable as the main borrower. The creditor can choose to recover the amount from the borrower. you can contact me I'm from hyderabad. 

Mohammed Mujeeb
Advocate, Hyderabad
11758 Answers
4 Consultations

4.5 on 5.0

You cannot do anything about it since you have stood as surety to the party, hence you may have to pay the amount and recover the same from him through your own sources.

Since you are  a government employee, it will be easy for the chit company to recover the money from you.

 

 

T Kalaiselvan
Advocate, Vellore
58895 Answers
746 Consultations

5.0 on 5.0

As surety you are liable to pay the amount borrowed through chit fund.

You should lodge FIR against that person for doing fraud with you and absconding by taking loan and making you surety by fraud. 

 

Mohit Kapoor
Advocate, Rohtak
4800 Answers
1 Consultation

5.0 on 5.0

Dear sir,

Use your good offices and file application and try to get withdraw as surety and in the meanwhile get issue a legal notice saying that your signatures were taken without your knowledge on surety papers etc. Otherwise the chit fund company may attach your salary. 

Kishan Dutt Kalaskar
Advocate, Bangalore
4690 Answers
134 Consultations

5.0 on 5.0

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