Legal Question in Banking Law in India

personal gurantee

i am director of a pvt ltd company which has including me 2 directors. Now I find that loan taken from bank is being misused by other director and want to resign as the director and take back my personal gurantee. Can this be possible?


Asked on 12/30/08, 3:27 am

3 Answers from Attorneys
J. Radhakrishnan independent Practice

Re: personal gurantee

If the loan for which you guaranteed has already been disbursed, you cannot escape liability by resigning now. If it is a continuing guarantee for a running account, you can revoke your guarantee by notice to the Bank and you will not be liable for future drawings, but your liability for drawings upto your revocation reaching the Bank will continue.

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Answered on 12/31/08, 4:58 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: personal gurantee

You are responsible for whatever has aleady happened till your resign.

The revokation of guarantee may not be permissible till the loan is continuing.

You may need to make a complaint of misuse against the another director or you may file a civil suit.

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Answered on 12/30/08, 6:07 am
Prof.Somnath Mukherjee s.mukherjee associates,09874053359

Re: personal gurantee

As per the company law you may not accept the resignation untill the the settlement of whole loan account. Moreover you can file both civil and criminal case against the other director.

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Answered on 12/30/08, 11:08 am


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