danish (Manager) 31 May 2011
What are the liablities of guaranter, if the borrower is absconding.
Borrower has mortgaged his flat to bank and is absconding, can the bank prosecute the guaranter for the loan amt. Currently the (third party) tenants are staying in the flat and bank is haressing the third party to vacate the flat under sarfaesi act.
Why they cant recover the money from the gaurantor, plz comment.
Bharatkumar (ADVOCATE ) 31 May 2011
First, Bank give a notice to the borrower and guaranter thenafter Bank file a suit for recover the amount and take order from Court thenafter he give notice with order to the tenant and vacate the property from tanant and take possession.
RAJU O.F., (Advocate) 06 June 2011
Principal debtor and guarantor are jointly and sevarally liable to the bank. Bank may proceed against any one or both in easiest way. It is stated that borrower absconded and tenants are harassed by bank for vacating by bank. Presume that they are not paying rent to anyone. They may pay the rent to the bank and ask for further time to vacate. If the tenant is aggrieved, he can file Appeal before DRT under Sec.17 of SARFAESI Act.
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