For father guarantee, his legal heirs cannot be held liable. Approch civil court for directions to clear cibil and removal as guarantor.
Bank cannot even ask a single penny from any family members.
Guarantor in company (later it become NPA)
Hello Sir/Madam, My father given one property to his friend company to borrow loan in 2016. my father is not partner or share holder in that company. This year, that company default on loan and become NPA. So, bank sell company land & machinery, partner & guarantor properties. my father also one of guarantor so they sell our property as well. My father was dead in 2016. so we bank add our family members as guarantor without our sign or permission. our all family members cibil score is down. Question-1: is it legal that bank include guarantor's family members as guarantor (without sign or permission) after guarantor's death. Question-2: can bank take our family members other properties & agriculture land? Please help me.
Asked 5 years ago in Civil Law
12 Answers
1. No. If the guarantor dies his legal heirs can be substituted in his place without written permission of them.
2. So if they didn't sign as guarantor mere including their names in place of original guarantor is bad in law and not enforceable.
3. Do there is no question of attaching the self acquired property of legal heirs of the guarantor.
family members name cannot be added as guarantors
your property inherited from father can be sold by bank to recover the dues
your self acquired properties cannot be taken over by bank
- As per law, a guarantor is equally liable to pay , if the borrower defaults on the loan repayment, hence your father being one of the guarantor is liable to pay the same.
- Further, under the Hindu Law, a son is under a pious obligation to discharge his father's debts out of his ancestral property regardless of the possibility that he had not been profited by the debts.
- Further, if the debt is purely personal debt of the father, then it cannot be passed over to the legal heirs.
- Further, they cannot get order of attachment property of son for the debt of your father, because father and son`s assets will be treated as their respective separate properties.
- Moreover, if you got property of father both movable or immovable properties through inheritance then only, your liability to pay the debs, after selling those inherited property.
1. If you are in possession of the property of father , then bank can include family members name for the recovery of the loan amount.
2. Bank can sell the property which is in the name of your father ,or you got inherited property from him.
- Out of this , if bank includes your name , then you can contest the case filed by the bank , and even get back the earlier property kept by your father as guarantee.
- You can connect with me via kaanoon.com , if needed further advise in the matter.
1) Bank has concern with their loan amount and guarantee towards there amount whose property is kept. So here your father was guarantor and the property was on his name and after him it transferred on legal heirs name so bank also changed guarantor names accordingly.
2) No bank can't take other properties than kept as guarantee. But the have to claim first borrower's personal property than guarantor.
What is amount of NPA ?
What amounts bank wants from you?
How much loan was taken by the freind of your late father?
How much amounts bank has realized as of now?
Theses questions are Absolutely essential for us to konw exactly what and how you, your father is liable to pay bank for NPA against the freind of your father raised by the Bank.
You questions 1 and 2 are valid and I answer NO.
Please discuss more details about the matter to put our opinions more specifically and legally.
1. No
2. No they can't
Being legal heirs or successors in interest to the property left behind by the deceased guarantor, the bank would justify their act.
The bank canot take away the properties belonging to other members of the family except that of the deceased guarantor.
1. Yes
2. Yes
File writ in HC
the lender can file a case against the borrower and the guarantor and the property of the guarantor is to be attached. Therefore if the said person fails to pay back the loan then the bank can attach the property that belongs to your father. .
Dear Sir/Madam,
You are suggested that bank is right on its action as to include the family member as guarantor but can't take the property other than which was pledged for the said loan.
1. Yes Bank can include legal heirs of guarantor as guarantors after his death.
2. No bank cannot take other properties in possession because liability if guarantor is limited to property given for guarantee of loan.
