I was one of the guarantors for a term loan for a SME company to manufacture food products.
Unfortunately the factory didn't do well and the company didn't pay EMIs. So, the bank declared NPA.
Now, the bank has sent notices to al guarantors saying that the borrower has defaulted and they want to
take possession of the properties we have given as collateral.
Though the factory assets is much more than the term loan, the banks are trying to sell the collateral first before
selling the factory.
Is this legal?