N.K.Assumi (Advocate) 23 December 2009
Husband and wife made a fixed deposit in the bank and the fixed deposit receipt stipulate that it was payable to either or survivor. The husband was a guarantor in a loan given by the bank to one shop owner. the shop owner could not pay the bank and in a money suit filed by the bank the court decreed the suit in favour of the bank and the bank attached the fixed deposit of the joint account gainst the wishes of the wife. Can bank asumed such rights to protect their interest?
N.K.Assumi (Advocate) 23 December 2009
Thank you Prakash, for your response. Lets see what other members says on this.
Nali Seshu Kumar (SOCIAL WORKER) 24 December 2009
assumi sir admittedly fixed deposit and the stipulation either or survival states their status and that bank has lien against the deposit such a situation as a guarantor the liability of him along with the principal debtor is open .but in case the suit against the principal debtor is dismised what is the effect of attachnent against guarantor?
V. VASUDEVAN (LEGAL COUNSEL) 03 January 2010
The bank cannot have a lien against the fixed deposit since it is a joint-account of the husband and wife. If, in the suit for recovery/attachment, the wife was also a respondent and did not contest, then the attachment order may bind her. Usually in joint-account matters, the joint-holders(especially wife) signs up various documents - If the bank had taken her consent for lien or any document of her acceptance! - this needs to be checked out.
vasudevan
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