Kumar (Flash Game Programmer) 21 October 2013

Giving Surety in a ChitFund company

My uncle is a govt employee. He gave surety to his friends for 25 Lakhs in a Chit fund company.

His friends are not paying to the chit fund company,the chit fund company is taking money from my uncle salary. he got few letters from the court to attend in the court belonging to this surety, but my uncle neglected it. now he is not getting any money from his salary. this is continuing since 5months.

One of the member who took surety from my uncle is having some properties like land. Can we put any case on him to take his land.

my uncle is a heavy drunker and too inocent. In future he may also give surety to others again.

is there any legal solution to stop his surety signs.

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3 Replies

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer) 23 October 2013

Under law a surety is as liable as the main borrower. The creditor can choose to recover the amount from the borrower or any one or more of the sureties. Generally they recover from the person from whom it is the easiest. Probably they have chosen your uncle because it was easy to attach the salary. As your uncle did not attend the court summons, it became even easier.

A surety can claim the amount from the main borrower. Let your uncle file a suit against the borrower to attach his property and recover the amount from him.

You are saying friends. Is your uncle surety in more than one case? Is the creditor one and the same for all?