Chitfund

You have not given the details.  You are saying 7 guarantees. Do you mean to say that you are guarantor for 7 persons who have got money from the chit company? You would have signed an agreement saying that you, the principal debtor and other guarantors, if any, are jointly and severally responsible to repay the amount. It means that the creditor can, at his discretion, demand the amount even from any one of them only to the exclusion of others. You persuade and prevail upon the debtor to pay back the amount. The creditor will try to get the amount from the person, who has the money to pay. That is the exact purpose of asking for guarantors. Why did you sign as surety in the first place? Was the debtor your son-in-law? Where is this chit fund, West Bengal or Kerala?

A am the 4th guarantor among the 7 members to a prized subscriber (durga prasad) it is in andhrapradesh, kapal chit fund, with out any intimation they came to our office before my retirement day, and gave court orders to MDO,. The chit was completed before 10 years, even i don't remember , after 10 years they suddenly came and stop my arrear amount, and demanding to pay all pending 4 lakhs. Other 6 members are in duty. Their retirement will be in 5 years later, so chit fund company demanding me to pay all the money . Subscriber had assets, but in the name of his father.. so plz suggest what can I do... I am ready to pay part payment, but not all money..

I can say definitely only if I see the documents. But I am almost sure that legally the chit fund can claim the amount from you. But if amount is recovered from you, you can in turn recover the amount from the original debtor and the other sureties. You contact the chit fund authorities and try to get time, if the amount is not already recovered. You try to get a temporary stay on the recovery from you.

Where is the original debtor, what is he doing?  You immediately contact a lawyer experienced in chit fund cases and move forward. Chit funds run for years, people carelessly sign as sureties, do not care to obtain copies of documents they have signed and wake up suddenly when court order comes.

Thank u very much sir,