trouble being guaranter
SUMIT MAHAJAN
(Querist) 03 August 2014
This query is : Resolved
Dear sir,
One of my relative was in need of funds and he requested me to become his guarantor for the loan in the bank to which i agreed.But even after 9 years he had make only a small partial payment towards the loan to the bank.From 3 months ,I am receiving call from bank threatening me to publish my name in the leading newspapers and initiating legal proceedings against me.dear sir, Its a big sum of money and i am not that financial sound to dispose of loan on my own as the bank officials are demanding and my defaulting relative has cut off all contact with me.
Me and my family are very much worried about the economic and social impact of the actions which will be shortly initiated by the bank.Please suggest the legal recourse by which i can save myself from the proceedings initiated by the bank.
ROHIT SHARMA
(Expert) 03 August 2014
1. serve a legal notice to such person and intimate him that you are withdrawing your guarantee if he fails to pay the loan within a months time.
2. similarly write a letter to the bank that you are withdrawing your guarantee since that person has breached his promise made to you.
3. What kind and in what form have you given the guarantee ? Do you have immoveable property on your name ?
SUMIT MAHAJAN
(Querist) 03 August 2014
It was a form in banks standard format.I was so naive at that time that I didnt even bother to go through the term and conditions of that document ,Ive told a friend who is employed in the bank to provide me the xerox copy of that form.The house i live in is jointly registered in my name along with my wife.
prabhakar singh
(Expert) 03 August 2014
1.If the loan was advanced 9 years ago and no acknowledgement was made to extend limitation
,apparently it has become time barred,so do not communicate with bank or with principal debtor in writing.
2.At worst bank can simply get you black listed and you would not get any loan from banks in case you need that.
3.If payments are petty amounts shown to have been deposited periodically just to extend limitation,they are challengeable and bank does need to prove them.
4.Keep in touch of a local civil law lawyer as a contract of guarantee unless barred by limitation makes you liable jointly as well as severally.
5.Your right against the borrower can not be initiated unless bank succeed in realizing from you alone.
6.You can not withdraw a guarantee ex-party and it would not stand revoked unless bank has accommodated
the principal debtor violating terms of guarantee.
ajay sethi
(Expert) 03 August 2014
agree with prabhakar singhji
Kumar Doab
(Expert) 03 August 2014
Agreed with learned Mr. Prabhakar Singh ji.
Guest
(Expert) 04 August 2014
A guarantor is always a loser if the principal debtor is not honest and sincere to discharge his obligations, more so when he is a relative of the guarantor.
You may adhere to the advice of Shri Prabhakar Singh. But, be sure the banker had not been pursuing with your relative or you for the repayment of loan right from a period within three years of the default.
Rajendra K Goyal
(Expert) 05 August 2014
Well advised, agree wityh the expert prabhakar singh ji.
