Borrower has taken money and deposited security and their is guarantor
03-Jul-2023 (In Corporate Law)
Borrower has borrowed money and deposited some security and there is guarantor also. So first security money will be realised or guarantor need to pay the debts?
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.
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.
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
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.
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.
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.
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.
Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.
Connect with top Corporate lawyers for your specific legal issue
No Comments! Be the first one to comment.
"lawrato.com has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."