Legal Question in Banking Law in India

Hello sir,

My father became guarantor of his friend for a home loan in 2004.

In 2010,the bank sent a notice to my father that the loan is not getting paid and as a guarantor, my father has to pay the due amount. Responding to the notice my father sent a legal notice to the bank through a lawyer suggesting to auction the land and recover the loan dues.

In 15 days the reply came from the bank stating that they will initiate the auction process in 60 days if the dues are unpaid.

But they did nothing.

After 3 years, 2013, the principle debtor was killed. And the prime suspect was his wife. He was a govt. employee. So the loan could have been recovered by his pf, ppf,gratuity etc. But as the nominee was his wife and she was suspected in the murder there was no way to get those money from govt..

From 2013, the bank has started deducting loan dues monthly from my father's account. In 2014, my father had an accident and he was unable to go to the duty for 4 months, so the bank freezed my fathers account and then my father visited the bank and then the manager told us that the principal debtor's wife has been released from custody and she somehow managed to get the pf, ppf etc all the money as a cheque from the employer and deposited it into another bank.

This year I got to know all of this events when I got to home after completing my degree.

I went to the consumer forum and talked to the counselor. He told me that this case can be filed there and adviced me to get a good lawyer and file this case asap.

I have sent a notice to the bank through lawyer. The reply is yet to come.

But today I saw an article stating supreme court judgment in 2012 that the guarantor is liable to pay the dues and guarantor cannot insist the bank or financial institution to exhaust all remedies that is concerned with the loan.

Is there any chance of this case to come in our favour if I filed a case in consumer forum?


Asked on 4/24/15, 1:28 pm

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

25.04.2015

Dear Sir / Madam,

You should concentrate and focus only on the crux of the issue i.e the reply from the Bank which has come to you within 15 days that they will initiate the auction of the land belonging to the Principal Borrower if the loan dues are not paid and settled within 60 days. How the Bank recovers the loan from the deceased borrower or his estranged wife is their problem, not yours ... just keep yourself out of it. Please email me a scanned copy of the newspaper article stating the Supreme Court judgement for my action. Yes, you should file your plea in the Consumer Forum.

Regards,

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Answered on 4/24/15, 6:38 pm


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