Legal Question in Banking Law in India

My father is one of the guaranteer of unsecured loan. Loan borrower has defaulted the loan and bank has sent notice to the borrower. My father passed away. But bank has kept the my as security and it is refusing to give the document to release from the bhoja. I am planning to seel the house. Please advice, how I can take it forward.


Asked on 1/31/13, 7:21 pm

3 Answers from Attorneys
Jayesh Desai Jayesh Desai

Your question is not clear, whether your father was mere guarantor or had created security of his house? Please clarify.

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Answered on 2/01/13, 12:31 am
Fca Prashant Chavan Expert Edge LLP

01.02.2013

Dear Sir / Madam,

(Badami / Cholachaggud, Bagalkot, Karnataka)

The bank has recourse to recovery of the outstanding loan amount from the original borrower by the disposal of assets / securities belonging to the original borrower pledged with the bank, till the original borrower is declared "insolvent" in the eyes of law. It is only thereafter that the bank has recourse from the guarantor towards the net outstanding balance on the loan, after all recoveries from the original borrower have been fully exhausted.

Please specify the nature of security provided by your father to the bank and whether "bhoja" means loan or "karjaa" or something else at [email protected]

Regards,

FCA Prashant Chavan

Mumbai

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Answered on 2/01/13, 12:31 am
Sanjay Kalra Sanjay Kalra & Associates

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Answered on 2/03/13, 11:26 pm


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