Legal Question in Banking Law in India

i was guarantor of colleague of mine for personal loan of Rs. 1.5 lac, 5 years back. 6 emi were paid after which my colleague died. after his death, the bank did nothing and even his family didn't pay the loan. after 4 years of default, now i am being asked to pay the loan with interest. the family refuses to pay the loan. the recovery branch of the bank doesn't press on the family. the loan account is gone into CAS of the bank. i know that as a guarantor, i have the liability. how should i proceed next? as no emi was paid for three quarters, it is supposed to be a NPA which should not generate interest. now the amount payable after 4 years is shown to be 3 lacs. the bank remained silent for 4 years and is now pressing me for payment of the loan. if i don't pay, how is it going to harm me in future?


Asked on 11/09/11, 7:57 am

1 Answer from Attorneys
Sanjay Kalra Sanjay Kalra & Associates

You can refuse to pay as the claim is time barred.

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Answered on 11/10/11, 4:56 am


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