Legal Question in Credit and Debt Law in India
many recovery suits for different emi
A loan of rs. 100000/- was given to be repaid in 60 emi through 60 post dated cheques alonghwith a guarantor with his also 4 post dated cheuqes with guarantee deed and a letter that if on due dates, instalments through post dated cheques of borrower is not paid, creditor can use the cheques of guarantor also. Fisrt five instalments were paid on time,no problem. But next 7 post dated cheques of emi were got dishounoured. There are still 48 emi to be dued. Now my queries are:
1. Whether for guarnntee can be invoked only for 7 due but not repaid instalments demanding the payment of only amount of 7 instalments from the borrower and guarantors in civil suits.
2. Whether in same manner whenever instalments are due in future, but not paid, can in part civil suits can be maintained.
3. Whether in addition to these recovery suits, case for summary civil suits of dishonoured cheques can be maintained in separate civil suits are in one suit all suits are amalgamated.
4. In which Act and sections I can find all answers in detail.
2 Answers from Attorneys
Re: many recovery suits for different emi
You may not be able to find all the answers at place. However, you may look for commentaries under Section 9 of C.P.C. read with Section 138 of Negotiable Instruments Act.
The action against guarantor and borrower is maintainable as per decision of the lender.
It may better to settle the matter out of court.
There may hardbly be any worthwhile defence available with the borrower and/or guarantor against action of the lender.
The courts are inclined to effectuate recovery speedily.
Re: many recovery suits for different emi
I would advise you to settle the matter out of court.
In case of need please contact personally alongwith the details.
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