Legal Question in Banking Law in India

I am a govt of india employee and i have given guarantee to a borrower who also is a govt Andhra pradesh state govt employee. He is about to retire by april 2014. But being a regular employee he is expected to get good settelment amount and pension after retirement.Now he is defaulter and has paid only Rs 45000/- as againts nealy Rs 1.2 lakhs till date. ( Total loan amount is Rs 2 laks and he has to repay it in 36 EMI of nearly Rs. 9800/- . EMI started from May 2012) Now financial institution has filed case in court. In this case attachment for recovery should be ordered first to borrower or to guarantor or both simultaneoulsy.

Asked on 7/04/13, 3:08 am

1 Answer from Attorneys

Fca Prashant Chavan Expert Edge LLP
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04.07.2013

Dear Sir / Madam,

Attachment for recovery of dues is primarily against the borrower first, and only if the loan amount outstanding is unsettled, the guarantor is called upon by the bank / financial institution to settle the remaining outstanding amount of the loan.

Regards,

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7/04/13, 3:13 am

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