LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

N.K.Assumi (Advocate)     19 November 2009

Discharge of Surety:

A and B jointly agreed to avail loan from the Bank in the name of A by making C a government servnt and the brother of B as the surety. However, after availing loan A did not disclose the loan taken from the Bank and said that Loan could not be availed. A also used C signature and obtain another  loan from the said Bank in the name of his wife with C as the guarantor. After many years B and C came to know the secret transactions with the Bank by  A when the Bank wrote to C for deductions of his salary for the loan taken by A and his wqife. Now the controlling officer of B has oredered B to deduct his monthly salary for the loan taken by A and his wife with C as the surety. Can C Revoke the surety agreemwent and refused to deduct his salary for the loan taken by A and his wife?


 4 Replies

N.K.Assumi (Advocate)     19 November 2009

Please read "Now the controllin officer of C has ordered C to deduct his monthly salary

Raj Kumar Makkad (Adv P & H High Court Chandigarh)     19 November 2009

C is liable to pay against the loan taken by A but not against the fradulantly loan obtained by his wife. C should go to criminal as well as civil court to initiate in the matter of his forged signature and guarantee in the matter of the wife of A.

snchandrasekarabharathi (senior manager (Law))     19 November 2009

The creditor cannot directly ask the employer of the guarantor to deduct thesalary unless there is an attachment from a court having competent jurisdiction. 

Gundlapallis (Advocate)     21 November 2009

Revoking of sureity bond is possible only before the principal debtor becoming a defaulter.  In this case, now NO.  The remedy available is only to establish the fraud played by A and recover the loss from him and punish him as well.  

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register