CMPL (Director) 01 May 2012

Drt liability of guarantor

A bank has filed a recovery suit with the DRT. I was a promotor/Director/Guarantor in the company. The total liability of the banks and FIs was 25 Crores. They liquidated the company for 3 Crores and auctioned my house for 5 Crores.

My guarantee to the bank was for Rs.1 Crore. Can I move the high court to release my Guarantee as the bank has taken my home which was not a collateral and have recovered more than my guaranteed amount. The DRT is very Pro-bank so I dont want to approach them as I wont get any releif from them.

Please guide me.

Thank You.

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3 Replies

bhagwat patil (Property due diligence 9422773303) 02 May 2012

Generally the guarantee is for total amount of loan jointly and severally.It possible if send the details of agreement signed between you and the bank.pl call

DR.VEDULA GOPINATH (ADVOCATE AND CORPORAE ADVISOR) 02 May 2012

THE GUARANTEE GENERALLY WORDED BY BANKERS AS PERSONAL GUARANTEE. ALSO THE COLLAT3ERAL SECURITIES ARE TAKEN BY BANK.

SUBJECT TO THE TERMS OF GUARANTEE AN APPEAL CAN BE MADE TO H.C. AGAINST THE ORDER OF D.R.T. IF ANY OF THE MEMBERS OF HINDU UNDIVIDED FAMILY ARE ADVERSLY AFFECTED BY THE BANK TAKING OVER THE HOUSE FOR A GUARANTEE OF RS.1 CR THEY ARE ALSO HAVING RIGHT OF APPEAL.

IF DOCUMENTS ARE SENT DETAILED OPINION CAN BE GIVEN

DR.VEDULA GOPINATH 09848227926 vgopnath2@yahoo.com

Surendra Gupta (Banker) 13 August 2012

You can ask for the true copy of the guarantee deed executed by you from the bank through a letter of request/RTI and after ensuring that your guarantee is of Rs.1 crore only, you can ask the bank for remitting the sales proceeds of your house (less guaranteed amount of Rs.1 Crores) to you immediately WITH INTEREST, failing which you have the option of approaching Banking Ombudsman/RBI/HC