Legal Question in Credit and Debt Law in India

Sir,

My father is guarantor for a loan. Principal creditor has filed a civil suit against my father for recovery and cheque bouncing case against principal borrower.

Recently my father has retired from his services. Can principal creditor (a co-operative society) claim his debt from my father's pension and provident fund?

thanks

Renu Singh


Asked on 11/30/15, 7:55 pm

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

01.12. 2015

Dear Renu,

If the original loan borrower(s) is/are proved insolvent, the principal creditor can claim recovery of their debt from the guarantor(s) funds and estate.

Regards,

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Answered on 11/30/15, 9:35 pm


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