Education loan

kishore (Querist) 15 June 2012 This query is : Resolved
sir...
X....taken education loan...next two persons Y AND Z as guarantor and given collateral security...

(Y)my father given collateral security post dated cheque given for SBI education loan ...next now bank treating us to pay loan amount or else they will file case again my father by cheque bounce case(NI act)...
(Z ) is guarantor or security......

next bank is forcing only (Y) to pay education loan and not forcing Z...since bank authorities telling my father they will case against my father criminal cheqee bounce case....but they are not forcing Z....next i came to know "No prosecuting debtor in chequee bounce case" by Bombay high court judgement...

Follow Query

Report Abuse

malipeddi jaggarao (Expert) 16 June 2012
That is the reason why when one extends guarantee to any loan, he has to think twice. In the present case, bank is right as there is no rule that they have to go simultaneously against all the borrower and guarantors at one time. They will choose a person who is having repayment capacity and leave others. The guarantor has right to demand contribution of his share of the co-guarantor after repaying the debt as demand by the Bank. Since PDCs are given to the Bank and since your father is guarantor (consideration is proved) any bounce of cheque will attract action under Sec.138 of NI Act.

What is the relation between the borrower and your father? It is an education loan. Both the guarantors should assert pressure on the borrower, if he has completed the studies and in employment. The best course of action is combined efforts of the guarantors to asset pressure on the borrower if he is having repaying capacity. If his default is genuine, all the three including the borrower, should meet the Bank officials, put forth the problems and seem some time or reschedulement of instalments.