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Ajay (Student)     02 June 2015

Surety

My brother Dinesh signed a surety for a loan from a chit fund company for his friend Praveen along with Praveen's wife and Moorthy. Dinesh is a government employee, Praveen's wife is a homemaker, Moorthy and Praveen are buisnessmen. 

 Praveen had failed to pay his loan and the chit fund sent notice to all the sureties. My brother was the only only one to respond to the notice.

Now the chit fund is saying that since Dinesh was the only one to respond to the notice he is liable to pay the full amount.

What should My brother do? Please advice. 

   



Learning

 2 Replies

ashishmahajan   02 June 2015

chit fund company have to right to file civil suit for recovery only to claim money from Dinesh not only because he replied to notice but Dinesh being surety

Adv Shrikiran.B (Advocate)     03 June 2015

Since your brother had signed a surity for loan pertaining to the chit fund company along with other 2 surities, he has been sent a notice and he is liable to pay the amount as per demand. Ask your brother to contact other surities and have a talk with them and resolve the matter with the chit fund company amicably at the earliest. If your brother fails to do so, there is every possibility of the chit fund company filing a money revovery case against your brother.   


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