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Chit funds related query as a guarantor
16-Oct-2023 (In Banking / Finance Law)
My father signed as guarantor for a chit taken by his friend from a. ...... Chit Funds Pvt Ltd. He has stopped paying the monthly payment. but as a guarantor my father has started paying from 4 months and he has 10 more months left from completion of the chit . Is there any solution to stop my father has given the salary statement (pay slip) during surety
His friend works with my dad. but my dad's friend is not paying. my father can't do anything they are(foremen) asking to my father and he is paying
Paying back the Chit fund company with my money is the only option he knows . But want to know that is there any other options.
Subject to limited information provided by you, as per law, guarantors will be held liable in case principal debtor fails to pay the debt. However the guarantor has a right to take action against such debtor to recover the payments made by you to chit funds.
In case your fathers friend who failed to make payment to chit fund is defaulter, the chit fund company first should try and recover money from him and next in case he becomes defaulter that’s when your father will be held liable.
Nevertheless chit fund company should recover through legal measures. Unless legal measures are taken your father need not pay.
This information is subject to limited information provided by you and shall not be regarded as an legal advise, and so please approach a lawyer for appropriate legal support.
In case your fathers friend who failed to make payment to chit fund is defaulter, the chit fund company first should try and recover money from him and next in case he becomes defaulter that’s when your father will be held liable.
Nevertheless chit fund company should recover through legal measures. Unless legal measures are taken your father need not pay.
This information is subject to limited information provided by you and shall not be regarded as an legal advise, and so please approach a lawyer for appropriate legal support.
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Adv. Ramya Kunapareddy
Hyderabad | 100+ Answers
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babu unanimous
sir, if guarantor agrees for payment on behalf of defaulter , more than 6 lakhs with interest on the prized 380000 rupees since 17 years, whats your advice
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