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Bank harassing guarantor for repayment of loan taken by borrower
21-Jul-2023 (In Recovery Law)
Hi .. Please provide me the suggestion, where my inlaw is guarantor to his friend in bank. Now he defaulted to pay. Principal Borrower Asset is also guaranteed in bank, where with the internal dealings, he valuated his asset to high value where bank is approaching to my inlaw value to auction. Can i take assistance from lawyer to get stay from bank by saying above reason ? It is clear that Prinicpal Borrower and some one in bank has tied up and my in law is in loosing position..please advise andhelp.. waiting for your reply.. thanks in advance.
For any recovery of loan the bank need to first issue a notice of default and call upon the defaulters to pay the loan arrears. If not paid, they have an option to approach the jurisdictional civil court for instituting a money recovery suit. Without orders from the court, your in-law's or as a matter of fact the principal borrower's property cannot be auctioned except in cases of SARFAESI Act.
The Bank has discretion to auction the property of either the principal borrower or that of the guarantor, if any. You may need the assistance of a lawyer to guide you if your in-law's property is in the verge of sale.
The Bank has discretion to auction the property of either the principal borrower or that of the guarantor, if any. You may need the assistance of a lawyer to guide you if your in-law's property is in the verge of sale.
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Raghavendra Rao B.K.
Bangalore | 200+ Answers
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