Mallikarjunarao (Designer) 05 March 2018

Chit fund

My father signed as guarantee for a chit fund company. Subscribe abscand. From all 8 guarantee s, only my father retired, they collect his benefits through court. What will he do. Remaining also govt employees

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5 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 05 March 2018

The Supreme court said the guarantor does not have a right to dictate terms to the creditor as to how he should make the recovery but said the liability should be shared by the co-sureties if there are more than one guarantor.

Mallikarjunarao (Designer) 06 March 2018

Thank u sir. For your reply. So can we fight with the co surities for the recovered amount . ?? I will meet u sir

Mallikarjunarao (Designer) 13 March 2018

Sir plz suggest me to , can we file a sute on co surities??

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer) 13 March 2018

Your father was guarantor, not for the Chit Fund but for a subscriber. You can file suit not only against the co-gurantors, but also against the primary subscriber himself.