Legal Question in Banking Law in India

One of my relative took a loan of 5 lacs from sahakari bank. My father was Personal Guarantor, along with one another Guarantor. Now the loan was Mortgage on Tanker which was newly purchased and due to riots in 2002 the Tanker was burned by Muslims in Baroda.

Now, Lonnie had stopped paying EMI as he was not having any income from the tanker purchased. Bank had gone to DRT and our relative losses case in DRT. Now since last two years he is repaying some amount in the bank every month. Now our father who was Guarantor, passes away since last two years. Second Guarantor is alive. now bank is asking for attachment to our house though my father had not mortgage my house or not given any documents of my house.

whether bank had right to attache (BOGA) to my house, or he can recover the amount from another Guarantor also.

Bank had send us the notice for any objection to be file within 30 days of notice.

now what should be done, as we are in very much stress.

Regards,

Gautam Shinde


Asked on 11/11/14, 4:24 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

11.11.2014

Dear Gautam,

The bank has recourse of recovery of the loan amount from the guarantors iff the main principal borrower is declared insolvent by the Court. The bank is not eligible and entitled to attach your house and the bank has to take equal action against both the Guarantors of the Loan since your father is no more. You should pressurize the original borrower to pay up the remaining outstanding balance of the loan immediately by mortgaging his own assets to another bank.

Regards,

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Answered on 11/11/14, 4:57 am


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