Legal Question in Banking Law in India

my client A is the guarantor in loan of 2.5 lacs for purchasing a commercial vehicle tavera by the principal debtor B who is defaulted and bank has already pulled the vehicle and send the debtor imprisonment of 6 month ,now my client has received a notice to pay the same amount from the bank by an independent practitioner.

Please let me know is there any way to reply the notice and save my client from any criminal or legal proceeding.

Thanks & regards

Amit K shukla

Advocate

[email protected]


Asked on 1/04/17, 8:58 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

04.01.2017

Dear Amit K Shukla,

Please refer the following link-

https://www.cardekho.com/carmodels/Chevrolet/Chevrolet_Tavera

The Bank is entitled to pursue recovery proceedings against your client who is the guarantor of the loan amount. In reply to the legal notice, your client should ask the Bank for the actual facts of the sales proceeds and exact amount of shortfall after adjusting and reducing the amount of Rs. 2.50 lakhs from the fair market realisable value from the net shortfall payable to the Bank by the guarantor.

Regards,

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Answered on 1/04/17, 9:36 am


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