In Third Party collateral Loan Co-borrower does not receive money but are asked for repayment

Explaining my case in an example: Party 1: ABC Co-operative Bank (Maharashtra State co-operative Bank) Party 2: X Pvt Ltd through its 2 directors (Principal Borrower) Party 3: Mr. A and B guarantors with Property on their name pledged as 3rd party collateral. Guarantors as well as co-borrower to the loan amounting to Rs. 1cr. Party 4: Mr. C and D guarantors with Property on their name pledged as 3rd party collateral. Guarantors as well as co-borrower to the loan Rs. 1 cr. Here a loan of Rs. 2 cr in totality was taken in one consolidated account in one account only. 10 EMI’s are paid and the principal outstanding is Rs. 2.20 Lakhs (As reducing method interest is followed and interest is calculated every month after adding the interest on previous EMI which is unpaid) 1 property of Mr. A and B is sold and an amount of Rs. 90 Lakhs is recovered by bank and adjusted against Rs. 2.2 crores. So my question is: 1) What is the liability of Mr. C and D after the sale of property if the company back out from payment of dues? 2) Is the principal to be written off to the extent of loan against property of Mr. A and B? 3) Mr. C and D will have to bear the complete amount of Rs. 1.3 cr (Rs. 2.2 cr - Rs. 0.9 Cr.)? 4) What are the option available to Mr. C and D against principal borrower and co-operative bank? 5) Are co-operative banks allowed to charge interest rates on reducing balance method?