In law guaranteed property in bank and principal borrower defaulted
04-Aug-2023 (In Civil Law)
Hi Experts.. My In Law guaranteed his property in bank under SARFESI act. Principal borrower defaulted and we strongly believe, bank colluded with principal borrower with the property which he pledged. Now bank coming to my inlaw property for auction. Can we get the stay in the court with this reason and how can we come over from this problem, Please do suggest and thanks in advance.
Hi, You can put up a very good defence and get a stay. However, the documents and the evidence they have needs to be checked in order to give you the correct opinion.
I'm handling a similar case wherein we have taken the defence of exorbitant interest and have stayed the proceeding for the auction. Should you need to consultant further please feel free contact.
I'm handling a similar case wherein we have taken the defence of exorbitant interest and have stayed the proceeding for the auction. Should you need to consultant further please feel free contact.
Your in-law's position is vulnerable. In legal terms a co-borrower or a guarantor is on equal footing with the principal borrower. Therefore, the bank may proceed against your in-law's property without going against the property of the principal borrower for whatever reason. A guarantor means a person who says I will pay the loan amount if the borrower does not. As you say SARFAESI Act has been invoked your in-law cannot do much to avoid further action except to pay the loan arrears and claim the same from the principal borrower by way of a money recovery suit. Your presumption that bank might have colluded with the borrower may be a reality but you may not be able to prove it by documents and evidence.
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