Legal Question in Banking Law in India

two friends X and Y had purchased an existing pvt ltd company and became the directors of the company.

X is acting as managing director and Y is acting as director of the company.

they had taken a bank loan of 3 crores and had run the business for 4 years, now Mr. Y has resigned from the company and the Mr. Y placed was occupied by Z.

so now X and Z are running the business and they are not paying the bank loans

now the bank has sent a notice to Y stating they are not paying the loan amount so have a look at that and make sure they the amount is paid as your the personal security.

and then Mr. Y has sent the resignations letters to bank stating he has resigned from the company and he doen't have any relation with them and transaction going on

the bank has not given any reply regarding that

and again the bank has sent a second notice to Mr. y

and the notice contains all the property's attested to while taking the bank loan and the bank had given an add in news paper also ... listing all the properties that are attached to bank while taking the loan.

now i need an advice how can Mr. Y get rid of this

what are the actions he has to take

if he receives a legal notice from court what he has to do

can u please tell me a solution completely

thanking you


Asked on 11/13/16, 9:14 pm

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

14.11.2016

Dear Sir / Madam,

Since Y has given personal surety to the Bank, it remains purely at the Bank's discretion whether to relieve him from the liability to repay the loan taken by the Company whilst he was a Director of the Company..

Regards,

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Answered on 11/14/16, 2:03 am


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