Chit Guarantor

Sajjan Kumar (Querist) 03 September 2015 This query is : Resolved
Hi this question is regarding Chit Finance. Suppose Mr. 'A' is Guarantor and Introducer of Four persons to the chit company, and three of them fails to pay the premiums permanently. Can the Chit agent refuse to pay chit amount to the fourth person to recover the amount of the first three persons since the guarantor is same for all.

Kindly provide your views.

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Guest (Expert) 04 September 2015
If you had Signed As Guarantor Then the Chit Company Could Mark the Lien to your Amounts For the Recovery.

Advocate. Arunagiri (Expert) 04 September 2015
The chit fund company can recover from the guarantor not from other parties to whom he stands as guarantor.

Guest (Expert) 04 September 2015
The Lien would be Certainly Marked to the Guarantor's Amount and that is the Reason they are Not Paying It and Legally they have Done It.

Guest (Expert) 04 September 2015
Advocate Arunagiri Ji's Statement"The Chit Fund company Can Recover From Guarantor"And "Not from Other Parties Whom He stands As Guarantor" It is Not Clear and Learned Advocate Arunagiri Ji Could Kindly Explain It Please.

Advocate. Arunagiri (Expert) 04 September 2015
Assume that A is the Guarantor to X, Y, Z.

If Z is defaulting, the chit fund company can recover from A, not from X Y. Because X and Y are not guarantors to Z.

Guest (Expert) 04 September 2015
There is No Assumption is required.Author had Only stated A is the Guarantor to all the Three.

Sudhir Kumar, Advocate (Expert) 04 September 2015
author is silent.

Guest (Expert) 04 September 2015
Nobody here is required to suppose in any acdemic query.

Sajjan Kumar (Querist) 04 September 2015
Thank you for all your valuable replies. @ Mr Arunagiri, here the question is about stopping the payment of Mr. Z, since the guarantor is Mr. A, who automatically is a guarantor for Mr. Z, against the Chit Fund Company. Now could you re consider your answer?

@ NJS Raj Kumar, i kindly request you to put your further views on this.

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