Question of Law
P.Balasubramaniam
(Querist) 23 November 2010
This query is : Resolved
Dear Learned Seniors,
One of my client, had given security to his properties for the credit facilities availed by his friend's two companies. Unfortunaly his friend had colluded with the bank manager and extented the security to an another company and he had defaulted in repayment for the three companies. The bank had sent a demand notice under sarfaesi act to my client. Now only he came to know that fruad had alleged by the bank and his friend to incorporated the third company in the guarantee agreement. I had filed case before the Munsif Court seeking declaration that the guarantee executed by my client for the said two companies were null and void and also filed a criminal complaint againt my client's friend and the bank manager. Now the bank had initiated steps under Sec 13 (4) of the sarfaesi act and i had filed S.A.before the DRT and obtained interim stay. shall i approach for High Court for proper remady? is itpossible???
Thanks
R.Ramachandran
(Expert) 23 November 2010
I just not able to understand your strategy. When the matter is already pending before the DRT and when the stay is in your favour what is the point in going to the HC at this stage?
P.Balasubramaniam
(Querist) 23 November 2010
Dear Sir,
My contention is the loan documents are forged and fabricated without knowledge of my client. DRT will not decide this matter. The bank advocate contents that civil has no jurisdiction to entertain the matter. I had filed the civil suit, before issuance of the Section 13 (4) notice. As per Mardia Chemicals case (in Para 51), it is observed that civil court has jurisdiction but as per the Sathyawati Tondon (2010 III BC 495) case civil court has no jurisdiction. kindly clarify me
s.subramanian
(Expert) 23 November 2010
Dear Brother,
You have done the right thing. It is good that you have approached the DRT. One more point in your favour is that by extending the guarantee to the other loans without your client's consent and knowledge,your client's guarantee stands totally discharged for all the loans. Your client is not liable to answer the claim of the bank wholly including the for which he orignally stood as a surety. You will get a lot of decisions in this regard under Sec.133 of the Indian Contract Act. You need not and cannot approach the High Court at this stage. Yopu have a good case. I wish you success.
Advocate. Arunagiri
(Expert) 24 November 2010
Without the signature of the property owner, the bank can not grant loan to any body. You have done all the necessary actions to protect your client. I am sure you will succeed.
M V Gupta
(Expert) 25 November 2010
Approach High court for what relief? I do not think that you can approach the High court directly in this case, as the primary forum is the civil court / the DRT.
P.Balasubramaniam
(Querist) 26 November 2010
Dear Seniors,
Thank you very much.
P.Balasubramaniam
