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Clarification on liability of guarantee after guarantor's death
11-Jun-2023 (In Banking / Finance Law)
Hello Sir, I have signed the home loan guarantee unknowingly the consequences for my friend and he committed sucide 2 years back, He had his company named RF, with was worth 10 crore, but now bank has sent me notice for recovering the money which is about 1.5 crore. His family is also not capable to paying the amount. They have tried to sell the property for 1.4Crore in auction but not able to sell it. I am a middle class person and dont have this much of the amount. Please guide me how can i get out of this.
Since you signed as the guarantor legally the bank has right to sue you and recover money. But since the friend committed suicide you can also put your defence and get out of the situation incase a legal action takes place
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Adv. Palak Nenwani
Delhi | 100+ Answers
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You had to contact the lawyer immediately as under the DRT act , the liability of guarantor is co-extensive with the borrower. It has to be seen whether bank has invoked the sarfaesi act against the mortgage property. U had to give a proper reply to bank and safeguard yourself as that liability could come up on you as well.
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Adv. Vikram Vishal Minhas
Delhi | 25+ Answers
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See guarantor only means to stand in place if original principal debtor is not able to pay debt but yes you can try to sell his property first to get your amount bank or if you are not willing to pay.
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Adv. Rajat Goel
Delhi | 25+ Answers
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