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Ashvin Raina   22 March 2023

How to safeguard huf property from attachment?

Sir, I am a guarantor for my friend who is the principal borrower in a cooperative bank. The principal borrower is a defaulter and doesn’t have assets to repay the loan. I have formed HUF for which I am Karta.   To recover the loan of the principal borrower could the bank attach My HUF Bank account and HUF property which was gifted by my brother to My HUF ? 



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 7 Replies

Shashi Dhara   22 March 2023

As guarantor you are responsible ,you cannot escape ,to avoid attacment if you have personal income disharge the loan .

T. Kalaiselvan, Advocate (Advocate)     22 March 2023

The HUF property belong to all the members of the HUF hence you cannot give the HUF property as a collateral security to the borrower in the capacity of a guarantor. 

Have you given this property as collateral security?

if not  then you don't show this property at all but you will be liable as a guarantor if the borrower has defaulted in loan repayment. 

Ashvin Raina   22 March 2023

No sir, Collateral security is not given for any property but signed as a guarantor in an individual capacity. 

Advocate Bhartesh goyal (advocate)     22 March 2023

HUF property can not be considered as individual property of it's any member so it can't be attached .Bank can attaced guarantors individual property only.

R.K Nanda (Advocate)     22 March 2023

bank can only attach your personal property.

Sudhir Kumar, Advocate (Advocate)     23 March 2023

Not understood what do you mean.  You have to live with the fact that as guarantor you are liable to pay the loan.  Till such time this loan remainins pending (interest swelling each day) you will not be able to get loan from any bank for any purpose.

P. Venu (Advocate)     26 September 2023

Has the Bank initiated the steps for recovery. In the absence of any collateral security, any attachment is possible only on the strength of a decree from the competent court/forum.


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