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wilson (service)     28 June 2009

wife paid bank loan as surity and occupying residence

wife and husband are fighting in court under domestic violence act since 2008. husband has taken a small business loan from a bank by depositing title deeds of house and wife also stood as surity who was also managed the business. the business went into losses and husband has to close down and repaid the loan to an extent of 2/3s and balance 1/3 became over due and bank issued notice under securitisation act and since husband is not staying due to domestic violence act in which he submitted to court that house was bought with hard earned money. on receiving notice wife settled with bank and paid giving a letter that documents should not be released to husband citing domestic violence case. Now what is the position of wife as guarantor discharged the loan and petition in dvc ? can she claim as her on merely she paid the loan amount to save the auction of residence? Can husband claim by repaying the amount paid by her? will he have any right on his property in these circumstances? what remidies he have as he is innocent and 100 % sure to win the dvc. Also petitioner of dvc is not attending court for last 6,7 adjournment dates on pretext or other and getting the case posted to another date for last 2 yrs... wilson


 3 Replies

A V Vishal (Advocate)     28 June 2009

Dear Wilson.

Going by the details, in my opinion the wife repaid the 1/3 loan as she stood surety, however, she has no right to stop the delivery of the property papers to be released to her husband even if a case is in progress under DV Act. She has to file a separate suit for recovery of the money against her husband. The bank is also under legal obligation to release the papers forthwith else a case can be filed against the banker. 

Kiran Kumar (Lawyer)     28 June 2009

Vishal has given a correct advice......suit of recovery is to be filed in such matters.


bank can not withhold the papers, moreover wife's role was merely that of gurantor.


bank to observe the relationship of lonee and gurantor and not that of husband and wife.

Pankaj Kr. Dua (Attorney at Law)     28 June 2009

Vishal and Kiram Kumar Have given the best advice and my opinion stands with vishal and kiran.

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