Way out for guarantor

no way, contact original borrower

Your client cannot escape from the liability. Pay the money on behalf of the borrower if not paid by him. Make documentation clearly. Then demand from the original borrower for the money paid by the client. File a suit. attach property if standing in his name. Otherwise, wait with the decree for coming years to enable the original borrower to amass money.

Mr Samson I suppose that it is a loan from soem Bank which was guranteed by your client

As advised by learned lawyers here, It is not correct to say that your client cannot escape the liability or there is noy way out. There are situations when you can escape from teh liability

If you can establish n the court that the Bank did not take due care and caution in teh administartion of the loan,  then teh gurantor willbe absolved of his liability

For example, In a Cash Credit (Hypothecation) Facilityif teh Bank Fails to take the Stock Statements

Another Example is suppose the Bank which held soem collateral Security but discharged it without knowledge of the Guarantor

Mr Ashok Kumar is very right in one way.  Your situation is now very frustrating (like in case of any other guarantor). You will have a tough fight with the bank in proving the bank's negligence.  However, the fact remains that you are in for a long drawn tussle. Regrettably, you will have to settle with the bank and pay up eventually.  Later you can try to recover with the borrower as advised by Mr Haridasan. Normally in such cases, the bank will file a suit against the borrower and you. Your option is to wait for the same.

Apart from the fact of the bank's negligence etc. your amount will be limited to the guarantee given by you and not more than that as of today. Of course, if the case goes before the court, the interest after the filing of the suit, could make the dues more than the guarantee amount.

Mr Samson Let me tell you that in cases like this there is no escape if you admit that you had given a gurantee However in mostr of teh cases liek this if you are able to establish the negligence of teh Bank in monitoring teh loan then it is 100% sure that you have nothing to fear

Now MYSELF BEING AN EX BANK OFFICER , I AM WELL VERSED WITH THE KIND OF NEGLIGENCES THAT BANK COMMIT. AND IT IS NOT VERY DIFFICULT TO ESTABLISH THE BANKS NEGLIGENCE

BUT IN ORDER THAT I MAY GIVE U A SUITABLE GUIDANCE AND A DIRECTION IN TEH MATTER, YOU MUST MEET ME FACE TO FACE!

IN WHICH CITY ARE YOU