Legal Question in Banking Law in India

i am a gurantor to a loan which has gone bad. bank is taking recovery action. as personal gurantee is give they have freezed my few accounts with bank.

i want to know that and money invested in LIC or some pension plans . if they mature or i withdraw do banks have a claim on it.

which bank account to use to get such money ??


Asked on 1/11/13, 9:52 pm

4 Answers from Attorneys
Jayesh Desai Jayesh Desai

You are liable to make the payment to the extent of your guarantee. Any amount above that will not be attached. Any financial institution cannot recover more then the guarantee amount from you, but to that extent they are entitled to recover and attache any account or accounts which you may have. Yes, to the extent of guarantee amount they will have claim.

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Answered on 1/11/13, 10:34 pm

they can claim up to t extent of ur guarantee and try to trace t property of t person who took t loan

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Answered on 1/12/13, 1:33 am
Fca Prashant Chavan Expert Edge LLP

12.01.2013

Dear Sir / Madam,

The bank has first recourse to recover its loan from the loanee from all his sources, till he / she is declared "insolvent" by the Court. Thereafter, the bank can fall back on the personal guarantor for recovery of the unrealized loan balance from the personal guarantor through Court order and instructions.

Regards,

FCA Prashant Chavan

Mumbai

(You can also mail me for any further on-line advice at [email protected])

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Answered on 1/12/13, 6:55 am
Aniruddha Pawse Aniruddha.P.Pawse Advocates

i agree with Mr Chavan

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Answered on 1/13/13, 3:34 am


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