Legal Question in Banking Law in India

Sir my query is that can a bank release the property to the borrower by deposit half amount Without consent of other guarantors.


Asked on 6/30/15, 9:00 am

2 Answers from Attorneys
J. Radhakrishnan independent Practice

No bank would take the risk of releasing a security given by the borrower by accepting half the amount without the consent of guarantors. If they do,without the consent of the guarantors, they can claim discharge from liability.

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Answered on 6/30/15, 1:50 pm
Fca Prashant Chavan Expert Edge LLP

01.06.2015

Dear Sir / Madam,

Yes. Since the principal borrower is primarily legally liable to settle the total outstanding of the Bank, the validity of the action by the Bank depends on the terms and conditions of the Loan Agreement / Court Judgement (in case of legal dispute) between the Bank and the principal borrower,

Guarantors can object to and intimate the Bank of their being partially / fully absolved from their secondary liability.

Regards,

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Answered on 7/01/15, 6:02 am


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