Legal remedy of bank loan guarantor

Querist : Anonymous (Querist) 25 March 2022 This query is : Resolved
I am an employee of a CA firm ?
(1) My chartered accountant has made me a guarantor in his client's bank vehicle loan
(2) On the request of my chartered accountant, I became guarantor of his client with a good intention.
(3) My CA'S Client is not repaying his loan so his bank vehicle loan has become NPA
(4) Due to which my CIBIL has also become bad and I am in a lot of mental stress.
(5) I have requested my chartered accountant many times to repay the loan but his client is not repaying the loan till day.
(6) When I wanted to take back my guarantee from the bank, the bankers refused to cancel my Guarantee without repaying the loan.

What legal remedies can I get for this fraud that happened to me?
Can I take any legal action against my chartered accountant?

please help me get out of this situation…thank you all

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Quick Summary

If you've acted as a guarantor for a bank loan and the borrower has defaulted, leading to an NPA and damage to your credit score, you have legal options. You can pursue a recovery suit against the defaulting borrower to recoup your losses. While directly suing the Chartered Accountant (CA) might be difficult without evidence of complicity, you may be able to include them as a defendant if you have proof of their involvement. Seeking legal advice from a local lawyer is recommended to navigate this complex situation and protect your interests.

kavksatyanarayana (Expert) 27 March 2022
File recovery suit against the client and CA

Dr J C Vashista (Expert) 28 March 2022
CA can not be sued.
The borrower is liable to compensate you, file a suit for recovery through a local prudent lawyer.

P. Venu (Expert) 28 March 2022
Yes, proceed against the borrower in a civil action with an IA for pre-trial attachment of his property. There is no harm in making the CA also a defendant if you have credible ev idence of his alleged complicity.

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