Legal Question in Banking Law in India
A Company, ABC Pvt Ltd gave its guarantee for the loan amount sanctioned to xyz pvt ltd. xyz pvt ltd defaulted in payment and two of three directors of xyz pvt ltd are untraceable. Can bank take action against the company ABC pvt ltd for recovery of its dues ?
Asked on 5/02/14, 2:45 am
1 Answer from Attorneys
Fca Prashant Chavan
Expert Edge LLP
03.05.2014
Dear Sir / Madam,
Yes, The Bank has to get the Court to issue "red corner" warrants against all the missing defaulting Directors of XYZ Pvt. Ltd. and concurrently run proceedings against the guarantors ABC Pvt. Ltd. to pursue for recovery of the outstanding loan dues from ABC.
Regards,
Answered on 5/02/14, 11:25 pm
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