Co operative society
velayudha
(Querist) 16 November 2017
This query is : Resolved
here is a co-operative society started 18 years back, at that time they have given loan of Rs 10,000/- each to every members with surety of directors of the societies. in the initial stage their recovery tactics are very bad, not followed a proper method, and many borrowers are defaulties. after that few years societies activities are standstill and no body bothered about recovery of loan. now all of a sudden they woke with different management team and started recovering loans. I am one of the founder director in that society. I was there for 2 years. i stood surity for 4 members, now out of 4 members 2 have expired, rest 1 is not traceable, for each Rs.10,000/- loan amount, now they are claiming nearly Rs.1,00,000/- (One lakh) including interest. please let me know what i have to do.
thanking you,
velayudha
Isaac Gabriel
(Expert) 16 November 2017
In case of default by the borrower, the surety is bound to settle, as the surety enters the shoes of the borrower.
Rajendra K Goyal
(Expert) 16 November 2017
You have been a director, you should have acted in more responsibility in recovering the outstanding.
Society can recover the outstanding from borrower or guarantor if the liability is not time barred.
