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illoosions (self employed)     17 July 2010

mortgage via guarantor

my father (late) & mother (61 yrs) stood as guarantors for a loan of 14 lakhs taken by a friend from a co-op bank in 1997. He is not able to repay the loan, he has paid off the principal amout & a substantial part of the interest. He is currently bankrupt & without any assests. Bank claims that our flat has been mortgaged against this loan. Bank claims they possess all necessary documents. We possess the original flat agreement and society membership share certificates. We are aware that the bank possesses the society noc. We are not sure what other documents they possess.

What should we do in this situation ? Can we file a case & win on the basis of original flat agreement. Also my mother being a widow & a senior citizen. Please suggest how do we get ourselves out of this situation. Or what can our friend do?

Please note that our friend has been working & paying his salary against the loan amount. Although we do not have confirmation. But the bank says that his funds are very insufficient. Current outstanding is 54 lakhs. So they will attach our flat for auction.



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 2 Replies

pranjal Dongaonkar (Practice)     15 September 2010

In my view, Bank must be having Gauranttee deed signed by your Mom & dad, which means that in case principal borrower fails to pay gaurantor would be liable to pay all the outstanding dues otherwise mort property would be attached.

So i don't think there is any chance. u can try with mutual talk.   

Saket Gandhi (advocate)     16 September 2010

First of all Take a General Power of Attorney from your mother in your name so that she is not to be taken to bank and then go with the bank and ask for the copy of Guranttee deed on which your parents signed the same. Ask for the principal debtor in whose favour such guarantee was made. Issue a notice on the principal debtor for the remaining payment to be made to the bank. Let us see what happens next.
 


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