Criminal Trident Pack: IPC, CrPC and IEA by Sr. Adv. G.S Shukla and Adv. Raghav Arora
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P.Vigneshwar Raju (Inspector)     08 September 2010

Defaulter of Chit payment

I stood guarantee for a chit of 5 lakhs to a friend. When the amount to be paid around 40,000 the person has abscounded and not paying the chit. The Chitfund has filed case and notices ae served to all the 5 guanrantors. Out of that only two are attending the court including me. Now the amount appears to have increased to about one lakh including interest and other expenses. Kindly answar my following doubts :

1.Is there any relief to the guantors if the person abscounding is produced to Chitfund Company ?

2. Is there any possibility to pay my 1/5th share amount   and avoid proceedings? and if paid will they have right to ask me for full payment?

3.If the case is delayed further, will they have right to increase the amount by adding interest and other incindentals?



Learning

 1 Replies

sanjeev narula (advocate)     08 September 2010

1. gaurantor are severally and jointly liable to pay the all the debts

2.   it is upto the company /lender to decide

3.   interest cost will be decided by the court which is usually 6-8%


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