Is there a criminal offence on the part of guarantor if he/she is not able to repay a default on corporate loan?
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Yes. The property of the guarantor can be legally attached to recover the pending dues.
Recovery proceeding might be initiated for recovering the pending amount with interest. The original terms and conditions of the document signed would be required to referred to for seeking resolution or the procedures that specifies recovery of defaulter loan.
Thanks,
Adv Feroz Shaikh.
The Guarantor is liable to pay the debts owed by the borrower, the creditor can exercise all the legal remedies available to recover the money due. Criminal action may depend on the intention of the accused, guarantor is is not necessarily criminally liable unless the creditor has material to show otherwise.
Regards
Setu Niket
Advocate
New Delhi
