Bank Loan Witness

Pramod (Querist) 17 March 2010 This query is : Resolved
Dear Sir,
One of my close relative has taken loan from Patpedhi .He has taken three loan from the Pathpedi on the names of three persons.One on my name where other two are witness. second loan on second persons name where rest are witness and third where rest are withness.and collected all money from Patpedhi and used.
Loan on my name and relativesname are recovered from me and his employer resp. But third laon where my witness is there is now pending from long time and 2nd recovery letter is recived from Co operative bank Court. The person on whoe name is working in RBI and the empoyer name address is known to Patpethi.
Can Pathpedhi recover the laon ammount from me? even the person on the name the name is available to Bank?
Urgent hekp required.

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B K Raghavendra Rao (Expert) 17 March 2010
If you have signed as a witness, you are not liable to repay the loan. But, if you have signed as surety/guarantor, you are bound by liability to repay the loan even if the principal borrower is available for recovery or not.

Kumar Thadhani (Expert) 17 March 2010
You are a witness and is not liable or recovery of loan.

Parveen Kr. Aggarwal (Expert) 17 March 2010
A witness of a document just identifies the signatures executant and he is not liable for any liability unless otherwise expressly undertaken. You cannot be held liable in respect of the loan where you have just signed as witness.

Pramod (Querist) 18 March 2010
Can I sue him in court for cheating ,
because in past he did same for 4 bank and made me to pay with Interestand penalty.

Parveen Kr. Aggarwal (Expert) 21 March 2010
You can sue him for cheating only if the conditions of section 415 of the Indian Penal Code, 1860 are fulfilled which is reproduced below:

"415. Cheating:- Whoever, by deceiving any person, fraudulently or dishonestly induces the person so deceived to deliver any property to any person, or to consent that any person shall retain any property, or intentionally induces the person so deceived to do or omit to do anything which he would not do omit if he were not so deceived, and which act or omission causes or is likely to cause damage or harm to that person in body, mind, reputation or property, is said to "cheat".

Explanation. A dishonest concealment of facts is deception within the meaning of this section."

Pramod (Querist) 22 March 2010
tHE PWERSON HAS GIVEN FALL ASSSURANCE THAT HE WILL REPAY THE LOAN AMMOUNT . AND TAKEN MY SING ON LOAN PAPERS .AFTER 2-3 YEARS WHEN I ASKED THAT WHY BANK IS SENDING ME LETTER FOR RECOVERY , rIGHT NOW I PAY IT SO YOYU PAY IT .
pLEASE ADVISE.

Pramod (Querist) 22 March 2010
Please ignore above reply.

The PERSON HAS GIVEN FALL ASSSURANCE THAT HE WILL REPAY THE LOAN AMMOUNT . AND TAKEN MY SIGN ON LOAN PAPERS .AFTER 2-3 YEARS WHEN I ASKED THAT WHY BANK IS SENDING ME LETTER FOR RECOVERY , HE REPLYING THAT RIGHT NOW I PAY IT SO YOYU PAY IT .
pLEASE ADVISE.