Can loan guarantor sue the debtor for non payment

Hi, I would like to know if a loan guarantor can sue the debtor if the debtor is unable to pay the loan. Also, the debtor has not signed any contract of repayment to the guarantor. In this case the guarantors put his property as a collateral and bank has put it up for auction. I would like to know if the guarantor can come after debtor and his property. Does the debtor face any jail time for not being able to pay the debt.

Answers (3)

It's depend on your transaction and agreement. Come with entire picture what u signed or not then only actual picture comes. But as per law their is only civil case again you for all no criminal case like arrest and all that taken against you. So contest it with your probable defense. U can contact me at my number.

Googling your legal issue online?

The internet is not a lawyer and neither are you.
Talk to a real lawyer about your legal issue.

Yes you can intiate the recovery proceedings against the original debtor once you pay the loan amount to the bank and obtain all the original document related to loan. However debtor can not be given jail term as it is civil matter.

Popular Recovery Lawyers

Advocate Rajesh Rai
Sector-19, Dwarka, Delhi
19 years Experience
Advocate Sunil Kumar Bakshi
Sector-16, Faridabad
32 years Experience
Advocate Saifuddin Saifee
Maharani Road, Indore
18 years Experience
Advocate J. P. Rinwa
Swej Farm, Sodala, Jaipur
18 years Experience

Yes, a guarantor to a loan can sue the principal debtor if he defaults and the guarantor had to pay on his behalf. In fact, as per section 145 of the Contract Act, there is an implied promise to indemnify the surety. Also, as per section 140 of the said Act, the surety/guarantor steps into the shoes of the creditor and has every right against the principal debtor/ borrower once he i.e. the guarantor has satisfied the creditor's debt.

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 and has been responded by one of the Recovery Lawyers at to address the specific facts and details. You may post your specific query based on your facts and details to get a response from one of the Lawyers at or contact a Lawyer of your choice to address your query in detail.

Related Articles

" has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."

Similar questions

sir i have given 2 lacs to my cousin as he ask loan for sometime it was in cash he deposit dat money with me in his account .but now he is not giving …

Read More

My friend borrowed rs.60000 from me , in his need. He committed to return it within month. But till now he did not return any amount, i have affidavit…

Read More

I signed an MoU with the buyer to sell my flat and received the token amount. the MoU was notarized. 3 days later, due to certain circumstances, I do …

Read More

sir my father has given guarantee for a loan with a another guarantor, bank has kept a sale deed (registry) of plot which is in the name of borrower. …

Read More