Bank recovered loan from guranter/surety,now my question is that would i file a summery suit against the borrower under order 37 of civil procedure code??
chandrasinh (Advocate) 26 August 2012
Bank recovered loan from guranter/surety,now my question is that would i file a summery suit against the borrower under order 37 of civil procedure code??
Adv.R.P.Chugh (Advocate/Legal Consultant (rpchughadvocatesupremecourt@hotmail.com)) 26 August 2012
Yes - when the guarantor/surety pays the loan of the bank, and thus discharges the liability of the original principal debtor, he steps into the shoes of the bank and can sue and get the money from the borrower and file a summary civil suit for recovery to that end. Normally when such payment is made it is a regular practice that the bank gives a letter of subrogation to the surety giving all rights that they had against the borrower to the surety.
Member Strength 9,47,478 and growing..
© 2024 LAWyersclubindia.com. Let us grow stronger by mutual exchange of knowledge.
