Legal Question in Banking Law in India

It appears that till now the bank has not taken any action for recovery. First and foremost, you as guarantor give a notice to the bank to revoke your guarantee which is a continuing one, so that for future transactions, you will not be liable. Send a letter to the bank to proceed against him first. As the liability of the guarantor is co-extensive, you may not have the right to dictate that the Bank must proceed against him first. However, you bring to the notice of the Bank that the principal debtor is diverting funds to his own benefit without settling the loan and request them to take action against him and his assets for recovery. You can only request that in view of his dishonest behaviour, equity exists in your favour that the Bank proceeds first against him and his assets and only in the event of it not being able to recover the loan, then to proceed against you. The other alternative is for you to pay off the outstandings due from him to the bank and get subrogated to the rights of the Bank against him. You cannot at present get any stay against the Bank from proceeding against you in case of default by the principal debtor.