Borrower has taken money and deposited security and their is guarantor

510 votes

Hello client,
i have read your question, as per the facts you have mentioned in your question its very technical question,actually it will b e decided on the terms and conditions laid down at that time when you have made the agreement.
Thanks.

Advocate Vishwanath Pratap Singh LawRato

516 votes

Technically you are not allowed to engage in money lending unless you have a license. Your guarantor at best is a witness towards a friendly loan. So in case you have a blank cheque go ahead with 138 NI act, in case you have a executed document go for civil suit for recovery it will cost you 1%...Else only option left is civil suit for recovery on base amount

Advoacte Amit Kumar Singh LawRato

950 votes

It is the duty of the borrower to pay the amount to the concern. If he fails to pay that amount then his deposited amount on the security shall be usurped first and then if there are still some amount which is due to be recovered then it is the duty of the guarantor to pay that remaining amount.

Advocate Pulkit Prakash LawRato

630 votes

Its a call for the bank to make. The bank can invoke both simultaneously or go after the guarantor first. But do check your guarantee agreement first for specific advice. Each case has to be decided on its peculiar facts.

Advocate Joydeep Nath LawRato

744 votes

Dear Querist,
In response to the query shared by you. I suggest you to first realise the debt from the security pledged/mortgaged with you. Thereafter, recover the remaining from the guarantor. In case you decide to file suit for recovery, it is necessary to make guarantor the party along with the borrower.

Advocate Kunal Anand LawRato