Continue to LawRato.com with Google


Status of guarantor in recovery suit

I stood as a guarantor with personal guarantee in 2011 for a business who took term loan from XY bank. Business ran into trouble and promoters requested bank for more time and bank restructure the loan by converting accumulated interest into another term loan in 2014. Bank also took new personal guarantees from promoters and one old guarantor. I refused to give another guarantee and I did not give the new one at all. Now bank has filed for recovery in DRT and have included me also as party for recovery. What is my status in this? What remedy do I have please?

Answers (2)

As you were the guarantor for the lonee for his loan granted by the Bank. You have not given the details regarding earlier loan in which you were guarantor in same loan A/C it has been renewed or that loan account has been closed after paying the amount. If the same account then you will be liable to pay the loan.

Googling your legal issue online?

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

As per the guidelines the guarantor is equally responsible as borrower and it is the wish of the bank for selling which property first. But still you can move yourself to DRT & also to High Court for taking relief to the extent that the property of the borrower be put on auction at first instance.

Popular Recovery Lawyers

Advocate Prabhjit Jauhar
Connaught Place, Delhi
21 years Experience
Advocate Shikhar Khare
Jangpura Extension, Delhi
5 years Experience
Advocate Prashant Mendiratta
Lajpat Nagar 4, Delhi
25 years Experience
Advocate Jaspreet Singh Rai
Greater Kailash 1, Delhi
15 years Experience

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

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. You may post your specific query based on your facts and details to get a response from one of the Lawyers at LawRato.com or book a Detailed Consultation with a Lawyer of your choice to address your query in detail.

Fixed Cost Legal Services

Legal Notice for Recovery of Dues

4.5 | 394 ratings
Fixed Price Rs. 2499
30 Min Intro call + Start to finish help
15 Minutes Recovery Advice Session by Phone

4.8 | 457 ratings
Fixed Price Rs. 499
Legal advice and answers from a local experienced advocate about your Recovery of Dues issue
Similar questions

my father sold his property without getting his full payment. now he gone . how can i get the full payment from that 3rd party…

Read More

Hello maine ek job k liye ek company me apply kiya tha. Suru me unhone apni fess 2050 batai thi jo maine di. Fir unhone 4000 ki mang ki wo bi maine di…

Read More

I had lend the amount of Rs. 10 lacs to friend in his firm with a verbal agreement that he will return the money in 2 months with 12 % interest per an…

Read More

During our recent trip to Goa, we were approached by agents of a holiday travel company who gave a presentation of a 'promotional' package whe…

Read More

Get free assistance for your legal issue