Civil Procedure Code (CPC)

Paying off bank loan as a guarantor

ABC is a partnership firm which took a loan of 20 lacs from SBI. 1 & 2 are partners of ABC firm as well as guarantors of loan. Whereas 3 & 4 are only the guarantors as well mortgagor of loan. The resident of 1,2,3 & 4 is kept as collateral security with bank against loan, value of which is 1 crore. Now bank has issued a notice under section 13(2) to make payment within 60 days. 4 is ready to make the payment for the loan as a guarantor for full amount. Whereas 1,2 & 3 are not ready to pay any amount. If 4 makes full payment to bank, how can he recover the money? Can 4 approach the bank manager and ask him to transfer the titles of 1,2 & 3? Or what other remedies should be taken by 4 while making the payment in order to recover that amount in future?



Your are not logged in . Please login to post replies

Click here to Login / Register  


  Search Forum



Post a Suggestion for LCI Team
Post a Legal Query
Civil Litigation Course     |    x