Legal Question in Credit and Debt Law in India

Sir,

I, Mohan, was a co-surety for a loan to the creditors. Creditors filed recovery case agaisnt me into two court. One case was filed for recovery into civil court and in the mid of court porceedings it filed another case of cheque bouncing under section 138NI.

Recently creditor has compromised the case with me into the court where cheque bouncing case was running and he recorded his statement there that �I am authorized to settle the case and I have received cash Rs. 120000 towards bond no. only as a guarantor for the principal borrower that the compliantant will not file anu future claim or case against the accused in respect of present transaction. The complaintant does have nothing unsettled against the accused uptil thid day. This settlement is full and final settlement with the accused. The cases is disposed off as settled. The� present

compromise � shall � have � no � bearing � upon � the � claim � of � the � complainant

against�the�principal�borrower�in�so�far�as�the�balance�amount�existing

towards�him/her�is�concerned.�

Now the Creditors is threatening me that he will recover the balance amount i.e. 380000 from me again as the compromised have some weak point that can be raised in future. He is saying I have settled the case but not release from your liablity as surety. You are still a surety and surety's liablity is equal to principal debtors. I will claim and recover the balance amount in civil court.

Please Please help and reply your suggestion. I am very afraid

Thanks and regards

Mohan

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