Legal Question in Banking Law in India

I was guarantor of a person X for a commercial vehicle loan in 2011 for tenure of four years. Person X was well known to me and installments were up-to-date. The X is not paid the amount for two installments, financier seized the vehicle, and sold to Y. Financier neither informed me nor took my approval to sold the vehicle to Y who was unknown to me. After 2 months, financier approached me and asking me to pay the differential amount (Actual expected amount - actual sold amont). The financier is calling me for my time to sit and will and discuss. What can I do now?

Asked on 6/14/13, 4:37 am

1 Answer from Attorneys

Fca Prashant Chavan Expert Edge LLP
0 users found helpful
0 attorneys agreed


Dear Sir / Madam,

Financier is not legally bound to inform you and take your approval prior to sale. As a guarantor, you remain responsible for settlement of the loan. You should confirm that the bank first actions recovery from the borrower from all his sources, and if there is still a shortfall, you should negotiate on a settlement with the financier.


Read more
Answered on 6/14/13, 4:42 am

Related Questions & Answers

More Banking Law questions and answers in India

Looking for something else?

Get Free Legal Advice

88953 active attorneys ready to answer your legal questions today.

Banking Law Legal Forms

Browse and download our attorney-prepared and up-to-date legal forms from $4.99

Find a Legal Form

Featured Attorneys

Anthony SmithLawSmithLee's Summit, MO
Rahul Manchanda, Esq.Manchanda Law Office PLLCNew York, NY
Glen AshmanAshman Law OfficeAtlanta, GA
Find An Attorney

Are you an Attorney?

Earn additional revenue and grow your business. Join LawGuru Now