Legal Question in Banking Law in India

i was put as a guarantor for a s.s.i unit for industrial loan. after 2 year, the proprietor of that industry & s.b.i official without informing me, extend the loan of Rs . 10 lacks.when i ask about the matter to bank officials , they are not co operating with me. few days latter C.M. of S.B.I. send an official letter to me stating that they have releashed my guarantorship from the above industry. i did not give any letter to bank for withdrawel my guarantorship.can they do that ? the proprietor says in press meet that he has put another person as guarantor in place of me. is it possible? now bank did not return my earlier guarenty.can i get my guaranty by law? please suggest me.


Asked on 6/10/12, 12:18 am

2 Answers from Attorneys
www.lawconcern.com S.Seshadri www.lawconcern.com

The letter from SBI releasing your gurantee must be studied to advice. www.lawconcern.com

Read more
Answered on 6/11/12, 6:44 am
J. Radhakrishnan independent Practice

It is open to the bank to unilaterally release you from guarantee. Preserve the letter of SBI informing their releasing you from guaranteeship. It is possible for the borrower to substitute your guarantee with that of another. You can seek the return of the guarantee agreement signed by you duly cancelled on its face, by issuing a notice to bank. If they don't return and you are particular in getting it back, you can issue notice to chairman of SBI to return the document within 15 days and if he does not redress you grievance, you can file a complaint with Banking Ombudsman of the Region.

Read more
Answered on 6/11/12, 7:07 am


Related Questions & Answers

More Banking Law questions and answers in India