Want to free from the problem in least time
I'm govt employee.Sir I had given surity to my friend for amount of 10 lakh a from the chit finance. He paid for 15 months then I given surity for with drawing the auction amount of nearly 7 lakhs. I felt he might pay back intime.. I given my salary certificates, residential proof, Id xerox. Later on I shifted my residential address.
Suddenly I recived court orders for attachment of salary for the amount of 3.6 lakhs.. One third of my salary is deducting from this month.
Now the borrower is giving me the assurance that he will clear the problem by going to the court and want to proceed for stay. I feel he is lying. I'm asking him to give the assurance on paper. He ready to give on bond paper and blank cheques for post date of one month.
Here I need your advice is it I'm proceeding in right path for get out of problem. There is option where my friends suggesting that take some local people help for recovery of money by pressuring in man handling way. I'm scared for that because it may turn me to other problems. The borrower is typical candidate with lot of bad background.
If your advice to writing on bond paper and blank cheques just brief me what kind of terms and conditions shall I put on paper.. Im taking local lawyer help and also want expertise suggestion from your side for better way of solving the problem. The borrower is a opthomologist having enough money but don't want to give type.
Asked 2 years ago in Civil Law from Hyderabad, Telangana
Hi, It is my kind advice to you that ask the borrower to be present in the court and ask him to file an affidavit before the Court that he will repay the amount to the lender in monthly installments or like wise and request the Court to discharge the guarantor till he pays the amount.
2. If the Court agrees then your salary will not be attached so that you are in safer side.
3. If he fails to pay the amount inspite that then you can file a suit for recovery of money to the Borrower.
If the borrower is an opthamologist why is he not repaying the amount.
Since he has become a defaulter the company will stand on your neck to repay the loan/chit amount since you stood as a guarantor and the recovery from you is very easy since you are a government or a salary class employee.
If the defaulter is agreeing to execute the bond in your favor you may obtain the same alongwith cheques in your favor and also obtain his property details so that you can repay his default amount in full to the decree holder/lender and recover the same from this borrower by filing a money recovery suit agaisnt him and can also obtain an order to attach his properties before judgment towards security for the guaranteed amount.
1) you should never give surety .
2) liability of principal debtor is co extensive with that of guarantor
3)rather than assurances on paper ask him to repay the money due to chit fund
4) if he is willing to give post dated cheques accept it
5)dont have debtor physically assaulted as the debtor may file criminal complaint against you
6) bascially debtor should acknowledge his liability to pay balance amount of Rs 3.6 lakhs with interest . your lawyer would do the needful
You seem to have been taken for a ride by your borrower friend. It is unwise to stand as a surety as the liability of a surety is co-extensive with that of a borrower. The stay may not be granted by the court unless the borrower deposits the amount in the court. If the cheques given by him are dishonoured then the only remedy will be to file a criminal complaint for cheque bounce.
First get a stay order on the attachment orders issued by the court.
Second, since the borrower is very much in business and is in a position to pay the loan, the chit fund should actually proceed against the borrower only and not against you.
It also makes sense that you get the borrower to execute a bond paper in your favour for a sum of Rs3,6lakhs plus interest and also get the same registered at sub-registrar office. Also take cheques towards principal and interest(undated cheques) and keep them with you in case you are not able to get the stay order from the court or if the chit fund wants to proceed against you in your capacity as Guarantor.
Hope this helps.