Priti 07 January 2022

Release of mortgaged property as guarantor

Dear Experts

My father who is a senior citizen gave his house as loan collateral security to his cousin for a business. Cousin defaulted loan and account got NPA. Due to fear of auction of house my father deposited 30 lacs as Gaurantor out of outstanding 60 lacs. Now bank account got regularised. After one year again account has been declared NPA and main property of business was auctioned by bank. Auctioned money recovered all outstanding of bank. But borrower went to Debt recovery tribunal and case is pending. Bank has got his money. My property is still with bank. Pls suggest me how can I get released my property from bank as I have already suffered and court case has no end. Thanks

Reply Follow

3 Replies

P. Venu (Advocate) 07 January 2022

What are the facts? What is the context?

Dr J C Vashista (Advocate) 08 January 2022

Your father is also liable for the outstanding loan amount till recovered by the Bank.

It is better that your father should consult, engage and contest the suit filed before DRT, which bank is entitled to recover.

G.L.N. Prasad (Retired employee.) 08 January 2022

Is your father is included as a party in DRT, contact a competent advocate to handle the issue as the guarantor is equally responsible as that of the borrower and as your father is a Senior citizen, your advocate may get some grounds to plead on some facts. What is the relationship in between borrower and guarantor ?