Debt recovery
Anamika
(Querist) 17 May 2018
This query is : Resolved
Creditor on default by Debtor asked guarantor to pay loan back but guarantor said creditor cannot invoke guarantee. Creditor file a suit and by an interim order guarantor was directed to pay half the loan. Can this be considered as debt paid by Guarantor on behalf of Debtor. Under what law and what remedies can be taken if the debtors denies to pay the amount?
Guest
(Expert) 17 May 2018
Seems to be merely an academic query, not a real problem.
Kumar Doab
(Expert) 17 May 2018
The guarantor has paid the liability of borrower being guarantor.
The guarantor must be having his/her own lawyer that represented in court.. and familiar with case facts/file...
The lawyer must have already update guarantor.
Guest
(Expert) 17 May 2018
Great presumptions by Mr. Kumar Doab, a fake expert with unreal name keeping himself in some hideout, mentioned as "other"!
Ms.Usha Kapoor
(Expert) 18 May 2018
Surety’s Liability
Under section 128 of Indian Contract Act, the liability of surety is co-extensive with that of the principal debtor that means the surety is liable to the same extent as the principal debtor. For example if the principal debtor is not liable for debt for some reason, then surety is also not liable for the same. Also, the principal debtor is discharged from his debt by the creditor for some reason then surety will be discharged too. This section depends on the contract as well. Therefore, the surety’s liability depends on the terms of the contract and is not liable to pay more than the principal debtor has taken.[3]
Hence the creditor can recover the entire debt to the extent of surity's liability and later on stand in the shoes of creditor to recover th e debt paid by him to the creditor on Judgment Debtor's behalf.
Guest
(Expert) 18 May 2018
Absolutely, irrelevant and misleading advice by Ms. Usha Kapoor! How you can expect her to give some correct advice, when she failed even to understand your question?
Could you find any answer in his advice to your real isssue and questions, "Can this be considered as debt paid by Guarantor on behalf of Debtor. Under what law and what remedies can be taken if the debtors denies to pay the amount?"
Ms.Usha Kapoor
(Expert) 18 May 2018
You read section 128./ Surity's liability's coextensive with that of principal debtor. If pri8ncipal debtor fails to pay the creditor's debt surety will discharge the debt to the extent of surity's liability and afterwards collects from Judgment debtor. or principal debtor.You don't know law and e3verything is vague and irrelevant for you. A quack is quack you have proved.Read section 128 of Indian contract Act.Instead of criticizing read law.
Anamika
(Querist) 18 May 2018
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Anamika
(Querist) 18 May 2018
Mr. Jigyasu,
It would have been so easy if instead of criticizing everyone you could just provide the answer to my query whether be it an academic query or a real prolem.
Guest
(Expert) 18 May 2018
@ Ms. Anamika,
Sorry to point out to you that a student does not enjoy any right to give me any direction. I do not prefer to provide answers to academic queries of students, who are careless and inattentive in their studies. When I feel someone is suffering with some real problem, even my questions raised against the quacks, in the guise of experts, give appropriate hint about the solution to that problem. But, if the so called expert is so duffer that he or she could not understand why he should give some correct advice, he simply proves himself/herself as a quack.
So, your question should have been aimed at Ms. Usha Kapoor, instead of me. Otherwise, it would be better for you to seek tuition from any of your school teacher or a local lawyer.
P. Venu 
(Expert) 18 May 2018
It is impossible court would give an interim order, as you have posted.
T. Kalaiselvan, Advocate
(Expert) 19 May 2018
If the debtor is unable to pay then the guarantor shall be liable to pay the debts.
As rightly opined by expert Ms. Usha, as per section 128 of the Indian contract act, Surety's liability.—The liability of the surety is co-extensive with that of the principal debtor, unless it is otherwise provided by the contract.
The surety can step into the shoes of the creditor to recover the loan amount from the debtor subsequently
