Legal Question in Banking Law in India

my friend brought a car in 2004 from bank loan in which his father, brother and I were guarantors but fail to pay the loan and a/c become NPA. Bank taken over the car and sold it. did not give me any information about that till date. Now the manager insisting me to pay the short fall amount of Rs.1,90,000/-. What shall I do now? whether the loan become barred by limitation and whether I have to pay the amount?


Asked on 2/23/13, 3:25 am

5 Answers from Attorneys

recovery can be made with in three years from t cause of action

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Answered on 2/23/13, 3:29 am
Fca Prashant Chavan Expert Edge LLP

23.02.2013

Dear Sir / Madam,

(Harishpur, West Midnapore, West Bengal)

The bank is supposed to approach all the three guarantors for recovery of over dues and not you alone, if all means for recovery of the loan from the original borrower have failed. You can argue on the limitation clause since the matter is more than four years old.

Regards,

FCA Prashant Chavan

Mumbai

(You can also mail me for any further on-line advice at [email protected])

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Answered on 2/23/13, 3:33 am
Global Legist Advocate & Legal Consultants

For Deatiled advice you can contact us personally.

Global Legist

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Answered on 2/23/13, 4:08 am
Jayesh Desai Jayesh Desai

Limitation starts running from the last installment paid. It also can be calculated from the last due date of payment. Normally a car loan is for three years or five years, if it is five years and last payment made by the borrower; is within three years from the demand made to you, it may be well within limitation.

You need to provide all the relevant dates to give proper advise.

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Answered on 2/23/13, 8:25 am


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