• One time settlement

My friend take a loan from co op bank. i give him guarantee. my friend did not repay loan installment since last 15 months. i want one time settlement and leave the guarantee. is it binding ots for co op bank? please help
Asked 1 month ago in Civil Law from Mumbai, Maharashtra
the liability of principal debtor is co extensive with that of guarantor 

2) since principal debtor has defaulted in paying the loan bank can sue  both of you  to recovery the money 

3) you can repay the loan amount . once loan amount has been repaid by you then you step into the shoes of creditor and sue your friend to recover the loan amount 



Ajay Sethi
Advocate, Mumbai
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The liability of a guarantor is co-extensive with that of the borrower. The bank is free to proceed against you for recovery if the amount is not recoverable from the borrower. You can only 'persuade' not 'bind' the bank for OTS. 
Ashish Davessar
Advocate, Jaipur
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449 Consultations
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You have to talk to the manager of the bank and negotiate the OTS if the bank agrees to it.
Or you can ask the bank to reschedule the loan and its repayment terms so that you can do it from now on.
T Kalaiselvan
Advocate, Vellore
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1. No. Accepting OTS proposal is not mandatory on the lending Bank and no Court can direct the lending Bank to accept the OTS proposal if the said proposal is not acceptable to the Bank.

2. However, negotiate with the Bank for the amicable settlement which they might accept since for enforcing security interest on your properties (if any of the same has not been mortgaged with the Bank) for your giving the guarantee, they shall have to wait for years.
Krishna Kishore Ganguly
Advocate, Kolkata
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you cannot with draw the bank guarantee given to the bank as per your wish . 

2) if principal debtor is willing to give bank guarantee of another person bank may agree to release you as guarantor 

3) in your case principal debtor is a defaulter and hence it not possible 
Ajay Sethi
Advocate, Mumbai
23370 Answers
1224 Consultations
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The guarantee cannot be withdrawn at this stage.  You can repay the entire loan amount by negotiating with the bank for  OTS and recover the same from the borrower through legal process.
T Kalaiselvan
Advocate, Vellore
14151 Answers
127 Consultations
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1.The matter can be closed only if the Borrower pays of the dues, or 

2. Substitute your guarantee with some other guarantee acceptable to the Bank. 
Krishna Kishore Ganguly
Advocate, Kolkata
12143 Answers
233 Consultations
5.0 on 5.0

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