My father (B) became a guarantor to a person (A) for a personal loan of Rs. 3lacs in the year 2016 in Pune, Maharashtra.
My father passed away in 2018.
A, has absconded from Pune during Covid and stopped paying the EMI.
A is contactible, his phone is reachable, his address is known, and he is not declared insolvent.
Bank has sent us a notice for recovery, which we (legal heirs of B) never received.
The bank went ahead and got one of our properties attached and is now threatening to seal and auction our property. What remedies do we have?
As per law, the liability of the guarantor is coextensive with that of the borrower. Therefore the guarantor has an obligation to repay the dues to bank if the principal debtor fails to repay to bank. All recourses available to bank against the borrower for recovery of dues are available against the guarantor also.
If the recover the amount from you then as a legal heir of your deceased father, you can initiate recovery proceedings against the borrower.
