Legal Question in Banking Law in India

My father along with six other directors started a limited company(limited by shares).They approached a bank for loan and loan was secured after mortgaging company and its machineries, in addition to this a joint continuous deed of personal guarantee was given by six of company directors,due to personal reasons my father resigned from the company well before the first installment of loan was released.My father passed away in year 2003,now in 2013 bank has attached our property for the loan and filed a suit in Court. Kindly please advise me will we as legal heirs be liable to pay the dues,my father has not pledged any of our property in guarantee deed..please guide me

Asked on 6/25/14, 2:45 am

Fca Prashant Chavan Expert Edge LLP

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25.06.2014

Dear Sir /Madam,

Yes. If your father has also given a personal guarantee to the Bank for settlement of the loan, you remain liable to repay his dues.

Regards,

Answered on 6/25/14, 2:57 am

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