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Shailesh Panchal   22 September 2019

personal guarantee

in a personal guarantee for pvt ltd company, can the directors property be attached ?


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 10 Replies

Adv Deepak Joshi +917017821512 (Advocate)     23 September 2019

yes, property can be attached. rest depends upon facts of each case.

G.L.N. Prasad (Retired employee.)     23 September 2019

The purpose of seeking personal guarantee is to make all directors individually liable and properties of directors are liable in case of default, as they are co-oblligants.

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     23 September 2019

The name itself is Personal Guarantee. Therefore, the properties of the  person who gives such a guarantee, can very well be attached.

Shailesh Panchal   23 September 2019

Thankyou for reply to all

Shailesh Panchal   25 September 2019

can parents property be attached

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     25 September 2019

Under normal conditions, the answer is "No".

However, if there was a transfer of property from the Guarantor to the Parents just to avoid the asset being attached, such transfer shall be questioned and the property goes into litigation.

Adv Deepak Joshi +917017821512 (Advocate)     26 September 2019

Self acquired property of parents cannot be attached. any tranfer to parents without consideration in order to avoid liability of personal guarantee then property can be attached

Adv Deepak Joshi +917017821512 (Advocate)     26 September 2019

Self acquired property of parents cannot be attached. any tranfer to parents without consideration in order to avoid liability of personal guarantee then property can be attached

G.L.N. Prasad (Retired employee.)     26 September 2019

Banks are not that foolish to take actions illegally while taking personal guarantee, they must have obtained a statement showing assets and liabilities duly certified by the guarantor, and they will make further check through private detective agency (Third party) and records all assets of guarantor.  Depending on self declaration bank takes further actions, after getting on record the legal opinion, and superior's orders.

Shailesh Panchal   13 October 2019

Thankyou for reply

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