shashwat poddar 08 July 2018

Payment as 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 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 can he file a petition in DRT to transfer the titles of 1,2&3 to him. Or how can 4 recover the amount paid to bank from the borrowers. What are the remedies available with 4 and what is the outcome of that?

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G.L.N. Prasad (Retired employee.) 09 July 2018

First get such confirmation from the Banker and such arrangement as MOU through DRT. As per law you can step into the shoes of such Bank and can recover either from other partners or from realisation through assets. Please take all precautions and entrust this to Advocate as the amount involved is substantial, do not take any risks on your own or depend on guidance of open forums.

shashwat poddar 09 July 2018

4 being the owner of 1/4th share of property i.e. the resident of 1,2,3&4 can he buy the entire property and deduct the loan amount and pay the rest amount due to 1,2&3 according to the law.