Dear Sir, Two persons entered into a financial transaction and I happened to be a guarenteer and pledged my property with the money lender by the means of a registered sale agreement. Now, the borrower has defaulted and the lender has filed a specific performance suit against me to recover the amount or to get my property registered on his name. He claims in the court as if there is no 3rd party at all and as if I dishonored the sale agreement. All the original property document are with the lender. Please advice how to come out of this situation.
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Liability of principal debtor is co extensive with that of guarantor
since principal debtor has filled to repay loan you are liable to repay the loan
you can repay the loan and step in shoes of lender
money lender has to return your original documents on repayment of loan
You may have to challenge the same on the basis of documentary evidences in your possession and merits in your side.
You may even contemplate to drag the borrower into the case as a witness from your side to prove your case.
However please note that as a guarantor you would be required to repay the loan amount if the borrower defaulted loan repayment.
Hi, you have to contest the case.Stating that you are not executed the Agreement to sale.You are act as a guarantor.
The liability of the guarantor is co extensive with that of the borrower
Since you have pledged your property and guaranteed repayment by borrower then on default of the borrower the lender is entitled to turn to you without suing the borrower
Your property may get attached to recover the money in above case
1. You undertook the liability of being a guarantor and now the lender is enforcing your liability. The liability of a guarantor is co-extensive with that of borrower.
2. Better enter into a settlement with lender.
Dear Sir,
You have to hire high profile advocate to save you. During the cross examination such money lender will be caught hold of. Further you have to do some homework to show that such person is in the habit of doing similar business which is illegal.
