• Bank held guarantor's pension

Sir
I am an 70 years old pensioner.i was an gurranter of a loanee.after failure to repay loan by loanee, bank seized my fd of 6 lac in 2010.some days previous bank withheld my pension ac too.while no action is taken to loanee.he is living peacefully with his lot of assets. Any option to get my pension?
Asked 2 years ago in Criminal Law from Sasaram, Bihar
Dear Querist
The bank send a notice to you before taken any action or not?
Without sending the notice under Sarfaesi or other act the bank can't initiate any legal action against you or borrower.
Nadeem Qureshi
Advocate, New Delhi
3513 Answers
129 Consultations
4.9 on 5.0
Hello,
If the borrower has assets it is his assets that would be attached if he fails to pay.Can you clarify the nature of the loan?When the bank seized your FD why did you fail to bring to the bank's notice the assets of the borrower?
You need to provide more details of the entire transaction and the nature of the loans,the different steps taken by the bank before attachment etc.You have remedies available when your pension is touched.
The Supreme court has given verdict that no pension or gratuity can be attached for debt recovery.You are only a guarantor and therefore the bank in no way can attach your pension.
You need to serve a notice to the bank and move the court if need be.
S J Mathew
Advocate, Mumbai
1949 Answers
65 Consultations
5.0 on 5.0
Hello,
As I mentioned above as it is a unsecure loan with nothing mortgaged the first thing you need to do is to send a legal notice to the bank demanding immediate refund of your pension benefit.If the bank does not comply move the court for further relief.

Secondly send a legal notice to the borrower for whom you stood guarantee.Even though the bank can not attach you will be able to prove with the bank's help/records you can call for  that he is liable to pay up.Now it has become his responsibility to compensate you with interest.
S J Mathew
Advocate, Mumbai
1949 Answers
65 Consultations
5.0 on 5.0
Sir,
That the action of the bank  is violative of principles of natural justice, as no notice was issued before attaching the FD and pension. Bank can exercise the right under the general lien as well as lien under Section 171 of the Contract Act, But only after issuing a notice to that effect an d informing you about the attachment.

   You should approach high court and file a writ under 226, and also you should find out  the details of the borrower's assets. Engage an advocate and  send a notice to the bank. Depending on the procedure the bank has taken the court will give order . if the loan was taken on security or mortgage bank should have obtained a decree from the court. it is also possible that the borrower put you in dark about the steps taken by the bank.
 If the loan was personal loan the bank can use the right of lien under s.171 only intimating you for  payment via  notice.
Thresiamma G. Mathew
Advocate, Mumbai
1315 Answers
85 Consultations
5.0 on 5.0
1. You shall have to keep one thing in mind that you are the Guarantor of the unpaid loan and have executed guarantee agreement wherein you have agreed to certain retaliatory act of the Bank in the event of the borrower's failing to repay the said loan,

2. Bank is acting as per the given guidelines,

3. You can only pick up faults with the Bank in following the recovery rule prescribed,

4. Bank is supposed to claim the outstanding amount first from you within a specified period failing which it can attach your Bank Account to recover the said unpaid loan from its guarantors account,

5. If the Bank has not issued you any prior notice, you can go file a Writ Petition against the Bank's decidion to attach your account without issuing any demand notice to you,

6. However, keep in mind that you will remain liable to pay the unpaid loan of the borrower as a guarantor till the loutstanding loan amount is paid.
Krishna Kishore Ganguly
Advocate, Kolkata
12027 Answers
226 Consultations
5.0 on 5.0
Dear Querist
bank's action is illegal and you may file a complaint before Banking Ombudsman if the Banking Ombudsman is not ready to solve your problems then file a civil suit against the bank before civil court and claim your amount with interest and claim damages too.
Nadeem Qureshi
Advocate, New Delhi
3513 Answers
129 Consultations
4.9 on 5.0
File a complaint under bank ombudsman as banks action us illegal. You can show the bank his asserts and ask court and bank to attach the same.you can file a case under human rights.file a writ seeking direction showing his assets and ask to take from that
Jeshma Mohandas KP
Advocate, Kozhikode
567 Answers
1 Consultations
3.5 on 5.0
first you send legal notice to bank. if bank is not releasing your money you move court for removal order
Avdhesh Chaudhary
Advocate, Greater Noida
565 Answers
20 Consultations
3.9 on 5.0

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