Gurantee to a loan
P GOPALA KRISHNAN
(Querist) 13 January 2014
This query is : Resolved
My mother, sister, neice, nephew and me had mortgaged our ancestral property for the education loan availed by my nephew one of the share holders of the property)& his father for studying in Australia and the other 4 i.e mother, sister, niece & me stood as guarantors. Now it is understood that the loan has been classified as NPA and we (the guarantors) have received demand notice under SARFAESI act. It is to be mentioned here that till receipt of the demand notice my mother & myself did not know that there was default in the loan. Hence we were not given a fair chance to take up with the borrower for repayment.Also the guarantee document signed by us is more than 3 years old and tyhe same had not been revived. Will the limitation act take effect.
Devajyoti Barman
(Expert) 13 January 2014
Limitation is no impediment here as you stood as guarantor here.
Talk to other co-sharers and ask them for repayment else the bank may force to make all repayment or in the end may even auction sell the property mortgaged.
Advocate. Arunagiri
(Expert) 13 January 2014
Once the Sarfaesi notice is served, the bank may take possession of the property.
To avoid this, talk to the bankers for rescheduling the repayment.
Get a stay from the DRT against the Bank.
Raj Kumar Makkad
(Expert) 13 January 2014
I do agree with the advice of arunagiri.
R.K Nanda
(Expert) 13 January 2014
as sarfaesi is very hard law get a stay from the DRT against the Bank.
Rajendra K Goyal
(Expert) 13 January 2014
It is also the duty of the guarantors to have an inquiry about the loan account also. Now the SARFAESI notice is served, take up the matter with the borrowers or take stay from DRT.
