Bosco 14 December 2015

Pvt ltd CC limit default

Hello, we are 2 directors are of a pvt ltd company and have defaulted a CC limit loan againt stock inventory and personal guatantee of directors, but under CGTSME sceme. I want to know in case of default will my parents be liable to pay the dues? And what all are recovery process bank can do? Can they harrass my parents for repayment?

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3 Replies

siddhartha sinha 14 December 2015

Credit guaranteed limits or loans does not imply that the borrower is not to be asked to repay. In fact only when bank has tried all recovery modes but failed, can they claim the guarantee. So banks will try all they can. Further a recovery suit in court is to be filed simultaneously when claim is filed with govt. Parents cannot be legally asked to pay just for being the parents.

Adv. Yogen Kakade (+ 91 9225510883) 14 December 2015

Hi,

Your perents can never liable for your dues unless they are gurantors for your loan or unless you are dead. And even otherwise the bank authorities cannot harrass your parents nor demand or claim from your parents.

Adv. Yogen Kakade

Jurycon Incorporation

Advocates & Consultants
Email: juryconincorporation@gmail.com
Web: www.juryconn.in

Bosco 14 December 2015

Yogen Ji, What is the process banks follow in case of cc limit default? I mean what all will happen in this entire process? Parents are not gurantors, only personal gurantee of both the directors.