Suhita Mukherjee 03 July 2020
G.L.N. Prasad (Retired employee.) 04 July 2020
The guarantor is having equal responsibility till the loan is repaid, and many banks insist for registering the charge with ROC even in case of guarantee by one corporate to another corporate, The other corporate should also show the entry as a contingent liability in the balance sheet. Mostly these things happen when the directors of the borrowing company is interested in other corporate also, and due to several incidents of siphoning one company amount to another company.