Legal Question in Banking Law in India

banking

A person had taken a loan from a

bank and one of his friend had

guaranteed the same. Payments

were not being made in the loan

account. The Bank therefore issued

a advocate notice. The notice to the

borrower was returned with the

noting ''no such adressee'' and the

notice to the guarantor was

returned with the endoresement

''adressee left''. The Bank is not in a

position to trace the present adress

of the persons. Can we now file a

suit as the notice to the borrower

and guarantor has not beeen

served. What is the defence they

could take in a suit which the Bank

may file for recovery of the dues

with respect to the notice. Is it

absolutely necessary that notice of

demand should be send before the

filing of suit or can the suit be filed

even without issue of notice. It is

proposed to find out the adress of

the defendants after filing of suit as

the suit may get time barred. Kindly

advise.


Asked on 7/20/09, 1:38 pm

2 Answers from Attorneys
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: banking

1. The Bank may better seek advice from its legal department; more particularly when you already have an Advocate who sent a legal notice.

2. The defence to be taken by the opposite parties may not possibly be predicted.

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Answered on 7/20/09, 10:13 pm
Rohini Kumar Tenneti R.K.1080 LEGAL SERVICES

Re: banking

Any bank would sanction a loan by appropriately securing the loans and identifying the borrowers.In your case you cannot rule out the possibility of the defence to be taken by the borrower so you publish a notice in the news paper and then suit file the case.

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Answered on 7/21/09, 12:06 pm


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