Legal Question in Credit and Debt Law in India

i am rewritting my question to makee it more clear

We were a tractor distributor .our firm enjoyed an revolving LC with Union bank. one of the bill was stopped payment because it crossed the sanctioned limit of LC .our stand was principal company should adjust that unpaid bill against our outstanding towards company. in the meantime we discontinued our facility with bank. paid all the out standings of the bank . No dues certificate was issued to us. our mortgaged prperties duelly released. subsequently bank made the payment of that LC. without our knowledge, with out any information to us.now bank has moved to DRT to recover that amount from us.can bank recover amount from us.what are the remedies available to us as principal borrower and guarantor


Asked on 10/10/10, 5:47 am

2 Answers from Attorneys
Vishwa Arya Arya & Co.

bank cannot claim that amount after clearance of no dues. that would not be considered as the amount borrowed or loan released and it is unilateral transaction for which bank alone is responsible.

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Answered on 10/10/10, 5:49 am
RAJIV GUPTA (Cell: +91 9811284735) [email protected]

you may take these pleas in your defence.

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Answered on 10/10/10, 11:48 am


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