Legal Question in Banking Law in India

sarfeasi act2002

is it possible to draw back the gurantee?what is the procedure for it?can you tell me.


Asked on 4/20/09, 12:09 pm

5 Answers from Attorneys
Vishwa Arya Arya & Co.

Re: sarfeasi act2002

you must give facts as to collateral and at what stage one wants to withdraw the guarantee

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Answered on 4/20/09, 1:43 pm
J. Radhakrishnan independent Practice

Re: sarfeasi act2002

If the loan is disbursed already, you cannot draw back (the correct usage is revoke) the guarantee. If the guarantee is for a running account like overdraft on current account or cash credit account you can revoke(cancel) your guarantee as to future transactions by issuing a letter to the bank concerned.but you will be held liable for all debit balance untill the notice of revocation reached the Bank.

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Answered on 4/20/09, 10:33 pm
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: sarfeasi act2002

contact a banking lawyer

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Answered on 4/21/09, 2:04 am
Pranav Desai PD Legal & Associates

Re: sarfeasi act2002

Yes, but only to the extent of the loan not disbursed. You can give a letter to the bank for revoking you guarantee for future transactions

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Answered on 4/21/09, 2:26 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: sarfeasi act2002

I agree with the above opinion.

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Answered on 4/21/09, 3:36 am


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