There cant be an arrest warrant but yes he has to repay the money if he is a guarantor as per law. 

1. Let your relative obtain anticipatory bail in case a warrant has been issued against him.

2. Let your relative meet the concerned statutory authorities of the Bank to resolve the issue amicably, by helping them to track and trace the absconding friend.

U R Welcome Sir.

Liability of principal debtor is co extensive with that of guarantor 

2) bank can sue guarantor to recover loan amount 

3) if criminal case is filed against guarantor and he does not appear in court then only bailable warrant would be issued against him 

Hi, Once the person has signed as a Guarantor then in case of default by the principal borrower then Guarantor need to pay the amount.

- As per law, if his friend not pay the loan amount , then your relative is accountable for the payment. 

- Further , as the said relative has given the cheque as a guarantee , then the bank can take legal step for the recovery of the amount from the guarantor. 

- Further, as your said relative has given two cheque it means he has shown that he is capable to pay the loan amount , if the principal failed to pay. 

- Hence, your relative should produce his friend before the court for coming out from the grantee. 

It is not clear how the bank has initiated a criminal action against your relative, when non-repayment of a loan warrants only a civil suit. Please provide complete details for proper advice.

Since the question of the repaying capacity has come to your relative now, he cannot claim shelter under this clause because he has voluntarily and on his own volition had signed the loan papers as guarantor.

If the borrower has not repaid the loan, as per law the lender will recover the loan amount from the guarantor. 

However the bank cannot issue arrest warrant against your relative, they can go for money recovery suit only and if your relative fails to convince the court then in the execution petition the decree holder can seek arrest of the guarantor.

Dear Client,

                   Banks cannot simply make a person guarantor without checking their repayment ability. Documents like KYC and income documents of the guarantor are asked to be submitted by the bank.Hence, this scenario might be counted as an omission on their behalf.Another defence is right of subrogation.The right of subrogation is an equitable and natural right of the guarantor against the Corporate Debtor on whose behalf he has paid.Once, the guarantor has paid on behalf of the primary borrower, he is entitled to get reimbursed from the primary borrower.

Thanks & Regards.