Legal Question in Banking Law in

Hi,

My husband has been put as guarantor for a personal loan of 6 lacs taken by him manager in 2006. Later he went abroad and we also shifted places and jobs.We lost his contact. We had no idea that he did not repay to the bank. 4 years later when my husband applied for personal loan they called him to their office for dispersal of the loan. One he met them they started asking forcing him to pay up for the loan his manager took and accompanied him to home and took cheques for amount due. In these 4 years they never contacted him in his permanent address available with them. So we did not had a pinch of idea about this. The person who took loan is a owner of a flat in bangalore where we currently live. Also he is living in Singapore right now but we do not know his contact details. We tried to explain him the situation through mail but he is giving vague answers. He is well off and having good earning.

Now my question is as a guarantor, what leagl actions can I take against him and Do I have any right to occupy his flat legally till he pays back the money.

Please help. We are in no way in a position to pay up 6 lacs. Also the bank did not follow proper procedure of recovery. They never tried to contact us regarding this issue despite having our permanent address and current address also from past 3 years as we have their credit cards and savings account as well.

Please guide us. Anticipating quick reply,

Thanks & Regards,

Sowmya.


Asked on 12/06/10, 4:53 am

1 Answer from Attorneys
Shaji Natarajan Salam Advocates & Legal Consultants

Dear Sowmya,

From the facts mentioned in your Query, I think maybe the loan was time barred due to which the Bank could not file any case against your Husband and his Manager. That may be the reason they choose to get some cheques from him. As a Guarantor your Husband's liability co-exists with that of the Borrower. In the event of your paying up the said amounts, your rights would exist to claim the same from the Borrower. You would step into the shoes of the Creditor and can then sue the Borrower for recovery of the amounts paid up on his behalf. At Execution stage his Flat can be attached for recovery of your dues.

For further clarification, you may mail to [email protected]

Best Regards,

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Answered on 12/06/10, 5:04 am


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