• Forging of signature

After signing initial deed of guarantee as Guarantor, the Principal borrower had taken several revised sanction letters & executed multiple link agreements which are integral to deed of guarantee which are accepted by Bankers. the same was officially communicated to Bank after we came o know of signatures forgery. Now bank has issued notices under Surfaesi & is in process of physical possession of property which was given as collateral at time of initial guarantee. application is filed with DRT..

property of principal borrower is still untouched.

email: [deleted]
Asked 3 months ago in Property Law from Mumbai, Maharashtra
Religion: Hindu

Liability of principal debtor is co extensive with of guarantor 


2) bank is at liberty to proceed against principal debtor or guarantor or both 


3) if your signatures are forged obtain hand writing expert opinion and file case against principal debtor 

Ajay Sethi
Advocate, Mumbai
71833 Answers
4316 Consultations

5.0 on 5.0

you can file application before DRT seek stay of auction of your property 


take plea that signature are forged 



enclose hand writing expert opinion 

Ajay Sethi
Advocate, Mumbai
71833 Answers
4316 Consultations

5.0 on 5.0

Guarantor is equally liable, bank can proceed directly against guarantor.

Date of signatures where forged and when FIR was filed is important to grant stay from DRT.

Yogendra Singh Rajawat
Advocate, Jaipur
16584 Answers
21 Consultations

4.6 on 5.0

1. IF you are the adversely affected party in the matter, You can suo motto file a Police FIR, requesting investigation and charge-sheet, for offences like cheating, forgery, intimidation, fraud, breach of trust etc.... against the person (and can also include the Bank authorities, for abetment due to no action despite knowledge of forgery) , supported with all relevant supporting Documents & Witnesses.

2. IF the Police does not take action, THEN you can file private criminal case u/s 156(3) Cr.P.C., in the local Magistrates court, seeking directions to the Police to investigate and file charge sheet. 

3. The above would atleast set the ball rolling, to a logical conclusion.

Hemant Agarwal
Advocate, Mumbai
3639 Answers
19 Consultations

5.0 on 5.0

Dear Sir

You will have to contest case before DRT . in your reply take plea that signature has been forged . file application in DRT for referring matter to handwriting expert for his opinion .
also file police complaint about forgery against principal debtor

Netravathi Kalaskar
Advocate, Bengaluru
4548 Answers
22 Consultations

4.8 on 5.0

See DRT may provide you relief if there is forgery and there is mistake on part of the bank also, if DRT fails you can file appeal before DRAT seeking the relief.

Shubham Jhajharia
Advocate, Ahmedabad
22780 Answers
91 Consultations

5.0 on 5.0

“It is not necessary for the creditor, before proceeding against the surety, to request the principal debtor to pay, or to sue him, although solvent, unless this is expressly stipulated for.”

In Bank of Bihar Ltd. v. Damodar Prasad & Anr.[2], the Apex Court referred to a judgment in the case of Lachhman Joharimal v. Bapu Khandu and Tukaram Khandoji[3], in which the Division Bench of the Bombay High Court held-

“The court is of opinion that a creditor is not bound to exhaust his remedy against the principal debtor before suing the surety and that when a decree is obtained against a surety, it may be enforced in the same manner as a decree for any other debt.”

The Hon’ble Supreme Court of India has taken a similar view, in the case of Industrial Investment Bank of India Ltd. v. Biswanath Jhunjhunwala[4] had observed-

The very object of the guarantee is defeated if the creditor is asked to postpone his remedies against the surety. In the present case the creditor is a banking company. A guarantee is a collateral security usually taken by a banker. The security will become useless if his rights against the surety can be so easily cut down.”

In State Bank of India v. M/s. Indexport Registered[5], the Apex Court held that the decree holder bank can execute the decree against the guarantor without proceeding against the principal borrower. Guarantor’s liability is co- extensive with that of the principal debtor.

However 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.

T Kalaiselvan
Advocate, Vellore
61752 Answers
795 Consultations

5.0 on 5.0

If you have approached DRT for stay of the operation of the proposed action by bank then you may have to await the decision because the settled laws say that the bank is at the liberty to attach the guarantor's proeprty also  without proceeding against the principal borrower. Guarantor’s liability is co- extensive with that of the principal debtor.

T Kalaiselvan
Advocate, Vellore
61752 Answers
795 Consultations

5.0 on 5.0

If primafacie forgery is established then drt can give you some reliefs. But forgery need to be proved

Prashant Nayak
Advocate, Mumbai
16587 Answers
30 Consultations

4.6 on 5.0

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

you shall have to prove that signature are fake. 

You can also file suit seeking declaration and injunction against bank. 

Mohammed Mujeeb
Advocate, Hyderabad
13703 Answers
5 Consultations

4.5 on 5.0

You should file application for stay on SURFAESI notice till pending investigation in case of forged signatures.


Mohit Kapoor
Advocate, Rohtak
6450 Answers
2 Consultations

5.0 on 5.0

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