• By discharging the principal borrower, bank filed recovery suit against guarantors by manipulation

A limited company availed loan from a Coop bank at Hyderabad in 1998 and third parties offered collateral security, and loan became NPA. in 2001 Banker under the pretext of reschedule of loan took signatures of guarantors on blank and unfilled documents and also took security cheques. Banker created a fresh loan in the name of guarantors/R1 & R2 and book adjusted the disbursement to loan account of limited company and issued no dues certificate to limited company.. Security cheques were misused to show that cash of Rs.1.44 Cr is withdrawn by R1 and deposited the same cash in loan account of Ltd company in the same bank on the same day. R2 is not the account holder of the said bank. O.P. is filed in 2004 at Coop tribunal against R1 & R2, without a single notice of default from 2001 to 2004 R1 & R2 came to know about case filed by paper notification in 2007. Need appropriate case laws/citations in defence of R1 & R2.
Asked 3 years ago in Civil Law

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9 Answers

I appeared for few cases before Arbitrator, co-op tribunal and High court during the year 2003 and there after when there was many issues in this area , where the tribunal was busy with Vasavi, Charminar, prudential co-op banks etc..

 

Your query needs research of the entire pleadings both on facts and law.

Sricharan Telaprolu
Advocate, Hyderabad
170 Answers
88 Consultations

4.9 on 5.0

The case is reported to have taken place 17 years ago and the case is going on for almost 14 years. 

You have not even mentioned about the status of the case. 

It is also not known whether the guarantors were the partners of the company or in what way they are related to the company. 

What is the opinion of your lawyer. 

What is the circumstances for which you require citation?

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

You can look for the citations yourself based on the circumstances prevailing in the case. 

There are various provisions in law to direct the bank to produce the desired details before court hence you adopt the procedures that are applicable,  exhaust the remedies and then approach high court with a writ petition if you don't get justice in the tribunal. 

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

Your defence should be that no loan was disbursed to you 

 

that principal debtor acted in collusion with bank officials to show that loan was taken by you and repaid by principal debtor 

 

that no notice was issued to you 

Ajay Sethi
Advocate, Mumbai
94520 Answers
7485 Consultations

5.0 on 5.0

You should deny your liability to make payment 

 

that principal debtor was fraudulently discharged 

 

that bank has acted in collusion with principal debtor 

Ajay Sethi
Advocate, Mumbai
94520 Answers
7485 Consultations

5.0 on 5.0

it is not so easy to provide case laws/citations merely on basis of the very limited information provided

all the papers will have to be gone into

the OP filed by the bank has to be read in detail to figure out how according to the bank the new borrowers R1 and R2 committed defaults in repayment

there are no available case laws that can be found instantly pertaining to the facts of your case as each case differs 

more information is required 

i do not understand why the amount was again deposited in the loan account of the company which was the original borrower and to which a no dues certificate was issued by the bank 

what are the documents that were executed between the bank and R1 and R2 on the rescheduling of the loan? without seeing all the relevant papers, no case laws can be found

Yusuf Rampurawala
Advocate, Mumbai
7483 Answers
79 Consultations

5.0 on 5.0

If the documentary evidence supports the bank then it is very difficult for the guarantors to escape the liability.

Only escape route is if fraud is established and proved.

So lodge complaint so FIR can be registered on this regard.

Devajyoti Barman
Advocate, Kolkata
22779 Answers
484 Consultations

5.0 on 5.0

Dear Sir/ Mam

1. You can ask them to bring account statement all the payments towards the debt.

2. You can counter them with Section 138 and Section 139 of NI act.

3. You can complain against them in consumer protection court and give them a legal notice to provide the details of bank records to realize cheque.

4. You can complain to banks ombudsman for the miss use and to justify their act.

5. You can also file a complain at Rbi to check the records and get back to you.

Thank you

Anik Miu
Advocate, Bangalore
8742 Answers
109 Consultations

4.7 on 5.0

You can approach the DRT or other appropriate forum against the said bank. you can approach me on linkedln for further reference and resolution for the same.

Prashant Nayak
Advocate, Mumbai
31807 Answers
175 Consultations

4.1 on 5.0

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