Guarantor's Lilbility

bank has crossed its limits in ur case. Even if a suit/proceeding for recovery is pending before DRT Kolkatta, in which you stood guarantor for loanee/respondent no. 1, even then bank cannot refuse you disbursement of further loan because first liability to pay remains with the loanee, then mortgaged property and lastly of guarantor. If any arrears remains even after availing bothe aforementioned opportunities, only then bank can recover from you. You get expedited the recovery proceeding, get the mortgaged property auctioned then avail fresh loan.

Dear jayati,

 I disagree with Mr. Rajkumar. The Supreme Court has recently held that the Guarantor is equally liable as the borrower himself and he can no longer take the plea that his liability can be invoked only after first proceeding against the borrower and hsi assets. This apart. the bank has every right to refuse extention of credit facilities to Mr. Roy since he is a gurantor for another loan account which is an NPA and a suit filed account. This Mr. Roy would also be a defendant in the application by the bank before the DRT. Therefore, in the eyes of law and the bank, Mr. Roy is also equally a defaulter as the borrower company and therefore cannot expect the bank to grant him credit facilities on a personal level also.

Thanks,

Ramakrishnan, ADV

Dear Jayati

This is in continuation of my earlier post. The Supreme Court has laid down the principle in the recent case of IDBI Vs. Biswanath Jhunjhunwala reversing the judgment of the Kolkatta HC.

Thanks,

Ramakrishnan, ADV

N. Ramakrishan ji

I have gone through the refrence and found that Hon'ble apex Court has laid down latest law as prescribed by you hence jayati has no oprion but to repay the laon amount for which he stood as guarantor if he wants to get new loan from either of branch of same bank

i agree with Ramkrishana

I too agree with Mr. Ramkrishana.. the liability of the guarantor is co existing with that of the borrower...