I, Rajvir, was a co-surety for a loan of Rs. 150000 to the creditors. Creditors filed the cases of cheque bouncing under section 138NI act against me of Rs. 150000 and against the principal borrower of Rs. 150000 simulteneously.
Recently creditor has compromised the case with me into the court where cheque bouncing case was running and the principal borrower's case is still running. He recorded his statement there that:
“I am authorized to settle the case and I have received cash Rs. 120000 towards bond no.XXX only as a guarantor for the principal borrower that the complianant will not file any future claim or case against the accused in respect of present loan transaction. The complainant does have nothing unsettled against the accused uptil thid day. This settlement is full and final settlement with the accused, Mr. Rajvir. The cases is disposed off as settled. The present compromise shall have no bearing upon the claim of the complainant against the principal borrower in so far as the balance amount existing towards him/her is concerned.”
Now the Creditors is threatening me that he will recover the balance amount from me again, if principal borrower become incolvent. He is saying that he settled the case but did not release from my liablity as a surety. According to the creditor, I am still a surety and and surety's liablity is equal to the principal borrower.
Please Please read the creditor's statement and help and reply your suggestion if Creditor can revoke his settlement and claim again.
Thanks and regards